Exam 4: Standards Battles and Design Dominance

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When customers attain their desired level of network externality benefits at lower levels of market share

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If a new innovation has a significant advantage in functionality,its overall value will be greater than the incumbent standard.

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Even though the American telecommunications company MCI had more cell phone subscribers at the time when AT&T decided to enter the cell phone market,customers were willing to sign up for AT&T's service.This is most likely due to

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Disetronic dominates the market for insulin pumps for diabetics.The more physicians prescribe it for patients,the more complementary goods are made for it.This is an example of "network externalities."

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By choosing not to exercise its monopoly power,a firm can flatten its monopoly costs curve.

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Why is the installed base of users of a technology that requires complementary goods so important to a company's future success?

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The "Buyer Utility Map" developed by Kim and Mauborgne can be applied only to consumer products.

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The fact that there are many companies supplying high quality and inexpensive ink refill kits for inkjet printers raises the value of the inkjet printer.

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Most photographers,graphic designers,and other professionals who work intensely with pictures use Photoshop.To be perceived as offering better value,a new graphics program would have to offer more value than Photoshop's _____.

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During the 1990s more and more people started using cell phones.As a result,the cell phone

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