Question 1

Often,the industry standard is selected competitively by

Accepted Answer

A)  market supply. 
B)  market demand. 
C)  government contracts. 
D)  all of these choices. 
E)  none of these choices. 
A)  market supply. 
B)  market demand. 
C)  government contracts. 
D)  all of these choices. 
E)  none of these choices.

Question 2

One strategy for success in high-tech industries is to keep prices low and thus increase sales volume.

Accepted Answer

A) True 
 B)False

Question 3

Even if they are constrained by a lack of capital,research shows that new entrants should avoid partnering with a larger company and go it alone.

Accepted Answer

A) True 
 B)False

Question 4

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Accepted Answer

A)  Embryonic 
B)  Growth 
C)  Shakeout 
D)  Maturity 
E)  Decline 
A)  Embryonic 
B)  Growth 
C)  Shakeout 
D)  Maturity 
E)  Decline

Question 5

Which of the following is an example of a technical standard?

Accepted Answer

A)  Typewriter keyboard 
B)  Dimensions of containers used to ship goods on trucks, railcars, and ships 
C)  The Universal Serial Bus (US
B)  
D)  Communication between a PC and the Internet via a modem (TCP/IP) 
E)  All of these 
A)  Typewriter keyboard 
B)  Dimensions of containers used to ship goods on trucks, railcars, and ships 
C)  The Universal Serial Bus (US
B)  
D)  Communication between a PC and the Internet via a modem (TCP/IP) 
E)  All of these

Question 6

Which of the following is not a disadvantage to being a first mover?

Accepted Answer

A)  Significant pioneering costs 
B)  Tendency to make mistakes 
C)  Risk of building the wrong resources and capabilities 
D)  Accumulation of market knowledge 
E)  Possibility of investing in inferior or obsolete technology 
A)  Significant pioneering costs 
B)  Tendency to make mistakes 
C)  Risk of building the wrong resources and capabilities 
D)  Accumulation of market knowledge 
E)  Possibility of investing in inferior or obsolete technology

Question 7

Which of the following will not help an established company in addressing the potential challenge of a disruptive technology?

Accepted Answer

A)  Access to knowledge about how disruptive technologies can revolutionize markets 
B)  Investing in newly emerging technologies that may ultimately become disruptive technologies 
C)  Anticipating and planning for how disruptive technology will change business 
D)  Distinctive competencies in the current business model 
E)  Understanding that a disruptive technology will require a radically different value chain with a different cost structure 
A)  Access to knowledge about how disruptive technologies can revolutionize markets 
B)  Investing in newly emerging technologies that may ultimately become disruptive technologies 
C)  Anticipating and planning for how disruptive technology will change business 
D)  Distinctive competencies in the current business model 
E)  Understanding that a disruptive technology will require a radically different value chain with a different cost structure

Question 8

When a company is trying to win a format war it should license its format for a low fee rather than a high fee.

Accepted Answer

A) True 
 B)False

Question 9

Digital music downloads have high marginal costs.

Accepted Answer

A) True 
 B)False

Question 10

Matsushita licensed its VHS technology to rivals,while Sony kept its Beta technology proprietary.This action allowed Matsushita to

Accepted Answer

A)  win the format war. 
B)  enter into an alliance with Sony. 
C)  earn marginally lower profits than Sony. 
D)  enjoy a laggard advantage. 
E)  bear switching costs better than Sony. 
A)  win the format war. 
B)  enter into an alliance with Sony. 
C)  earn marginally lower profits than Sony. 
D)  enjoy a laggard advantage. 
E)  bear switching costs better than Sony.

Question 11

There are guidelines for turbine blades for jet engines.These guidelines define the exact material and performance requirements of these engines and can be referred to as

Accepted Answer

A)  format wars. 
B)  technical standards. 
C)  a technological paradigm shift. 
D)  a first-mover advantage. 
E)  razor and blade strategy. 
A)  format wars. 
B)  technical standards. 
C)  a technological paradigm shift. 
D)  a first-mover advantage. 
E)  razor and blade strategy.

Question 12

Which of the following strategies should a company not adopt if it wants to win a format war?

Accepted Answer

A)  License their technology to competitors. 
B)  Develop complementary products. 
C)  Enter into a joint venture to ensure compatibility. 
D)  Aggressively market to jump-start demand. 
E)  Price the product high to recover steep upfront costs. 
A)  License their technology to competitors. 
B)  Develop complementary products. 
C)  Enter into a joint venture to ensure compatibility. 
D)  Aggressively market to jump-start demand. 
E)  Price the product high to recover steep upfront costs.

Question 13

When automobiles first became available to the public,it was difficult for buyers to find products such as tires,gasoline,and light bulbs for their cars.Early automobile owners

Accepted Answer

A)  faced a first-mover disadvantage. 
B)  lacked complementary products. 
C)  were locked out of the market. 
D)  lost the format war. 
E)  were too innovative. 
A)  faced a first-mover disadvantage. 
B)  lacked complementary products. 
C)  were locked out of the market. 
D)  lost the format war. 
E)  were too innovative.

Question 14

Digitalization has made it more difficult to protect some intellectual property rights.

Accepted Answer

A) True 
 B)False

Question 15

A set of related technical standards that specify the common set of features or design characteristics of a product is called a dominant design.

Accepted Answer

A) True 
 B)False

Question 16

Marginal cost refers to the cost of

Accepted Answer

A)  switching to a new technology. 
B)  buying stock with loaned funds. 
C)  producing one extra unit of product. 
D)  realizing a profit. 
E)  motivating other firms to produce complements. 
A)  switching to a new technology. 
B)  buying stock with loaned funds. 
C)  producing one extra unit of product. 
D)  realizing a profit. 
E)  motivating other firms to produce complements.

Question 17

Technical standards in high-technology industries are

Accepted Answer

A)  specifications developed by each producing company for its own products. 
B)  specifications that all producers adhere to when making a product or product component. 
C)  product specifications imposed by the federal government. 
D)  expressions of product features desired by consumers. 
E)  general guidelines proposed by industry leaders. 
A)  specifications developed by each producing company for its own products. 
B)  specifications that all producers adhere to when making a product or product component. 
C)  product specifications imposed by the federal government. 
D)  expressions of product features desired by consumers. 
E)  general guidelines proposed by industry leaders.

Question 18

By exploiting a positive feedback loop,Dolby Laboratories,became the standard for sound quality.

Accepted Answer

A) True 
 B)False

Question 19

What advice would you give to a firm that wants to exploit network effects?

Accepted Answer

A)  Price your products high in the early stages of the market's development. 
B)  Be a first mover and thus establish the technical standard. 
C)  Create incentives for other firms to develop complementary products. 
D)  Develop more killer applications than do competitors. 
E)  Ask customers to bear the switching costs. 
A)  Price your products high in the early stages of the market's development. 
B)  Be a first mover and thus establish the technical standard. 
C)  Create incentives for other firms to develop complementary products. 
D)  Develop more killer applications than do competitors. 
E)  Ask customers to bear the switching costs.

Question 20

Consumers will bear the costs of switching technologies when

Accepted Answer

A)  the benefits of adopting the new technology outweigh the costs of switching. 
B)  switching costs are substantial. 
C)  switching costs are reimbursed by makers of a product. 
D)  all of these choices. 
E)  none of these choices. 
A)  the benefits of adopting the new technology outweigh the costs of switching. 
B)  switching costs are substantial. 
C)  switching costs are reimbursed by makers of a product. 
D)  all of these choices. 
E)  none of these choices.

Often,the industry standard is selected competitively by

One strategy for success in high-tech industries is to keep prices low and thus increase sales volume.

Even if they are constrained by a lack of capital,research shows that new entrants should avoid partnering with a larger company and go it alone.

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Which of the following is an example of a technical standard?

Which of the following is not a disadvantage to being a first mover?

Which of the following will not help an established company in addressing the potential challenge of a disruptive technology?

When a company is trying to win a format war it should license its format for a low fee rather than a high fee.

Digital music downloads have high marginal costs.

Matsushita licensed its VHS technology to rivals,while Sony kept its Beta technology proprietary.This action allowed Matsushita to

There are guidelines for turbine blades for jet engines.These guidelines define the exact material and performance requirements of these engines and can be referred to as

Which of the following strategies should a company not adopt if it wants to win a format war?

When automobiles first became available to the public,it was difficult for buyers to find products such as tires,gasoline,and light bulbs for their cars.Early automobile owners

Digitalization has made it more difficult to protect some intellectual property rights.

A set of related technical standards that specify the common set of features or design characteristics of a product is called a dominant design.

Marginal cost refers to the cost of

Technical standards in high-technology industries are

By exploiting a positive feedback loop,Dolby Laboratories,became the standard for sound quality.

What advice would you give to a firm that wants to exploit network effects?

Consumers will bear the costs of switching technologies when

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

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Exam 7: Strategy and Technology

Often,the industry standard is selected competitively by

One strategy for success in high-tech industries is to keep prices low and thus increase sales volume.

Even if they are constrained by a lack of capital,research shows that new entrants should avoid partnering with a larger company and go it alone.

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Which of the following is an example of a technical standard?

Which of the following is not a disadvantage to being a first mover?

Which of the following will not help an established company in addressing the potential challenge of a disruptive technology?

When a company is trying to win a format war it should license its format for a low fee rather than a high fee.

Digital music downloads have high marginal costs.

Matsushita licensed its VHS technology to rivals,while Sony kept its Beta technology proprietary.This action allowed Matsushita to

There are guidelines for turbine blades for jet engines.These guidelines define the exact material and performance requirements of these engines and can be referred to as

Which of the following strategies should a company not adopt if it wants to win a format war?

When automobiles first became available to the public,it was difficult for buyers to find products such as tires,gasoline,and light bulbs for their cars.Early automobile owners

Digitalization has made it more difficult to protect some intellectual property rights.

A set of related technical standards that specify the common set of features or design characteristics of a product is called a dominant design.

Marginal cost refers to the cost of

Technical standards in high-technology industries are

By exploiting a positive feedback loop,Dolby Laboratories,became the standard for sound quality.

What advice would you give to a firm that wants to exploit network effects?

Consumers will bear the costs of switching technologies when

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters