Question 1

Aggressive marketing is a key factor in jump-starting demand to get potential early adopters to bear the switching costs associated with adopting a new innovation.

Accepted Answer

A) True 
 B)False  True

Question 2

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 higher profits than Sony. 
D) enjoy a first-mover advantage. 
E) bear switching costs better than Sony. 
A) win the format war. 
B) enter into an alliance with Sony. 
C) earn higher profits than Sony. 
D) enjoy a first-mover advantage. 
E) bear switching costs better than Sony. A

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

Microsoft released its latest operating system,Windows Vista,and intended it to replace earlier versions of Windows.Buyers of Vista had to learn how to use the features of the new software; thus,buyers were facing

Accepted Answer

A) a first-mover disadvantage. 
B) outmoded technology. 
C) a positive feedback loop. 
D) a format war. 
E) switching costs. 
A) a first-mover disadvantage. 
B) outmoded technology. 
C) a positive feedback loop. 
D) a format war. 
E) switching costs.

Question 6

Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

Accepted Answer

A) True 
 B)False

Question 7

A razor-and-blade strategy refers to lowering a company's cost structure.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

When an industry's products rely on a common set of features,these features are called a

Accepted Answer

A) dominant design. 
B) format war. 
C) first mover. 
D) public domain. 
E) high-tech industry. 
A) dominant design. 
B) format war. 
C) first mover. 
D) public domain. 
E) high-tech industry.

Question 10

Digital music downloads have high marginal costs.

Accepted Answer

A) True 
 B)False

Question 11

Switching costs are the costs that consumers must bear to switch from a product based on one technological standard to a product based on another.

Accepted Answer

A) True 
 B)False

Question 12

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 13

The law of diminishing returns states that marginal costs fall as a company tries to expand output.

Accepted Answer

A) True 
 B)False

Question 14

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 choices 
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 choices

Question 15

The various strategies that companies should adopt to win format wars revolve around

Accepted Answer

A) getting the federal government to intercede. 
B) making network effects work in their favor and against their competitors. 
C) effective use of advertising. 
D) driving competitors out of business. 
E) joint ventures. 
A) getting the federal government to intercede. 
B) making network effects work in their favor and against their competitors. 
C) effective use of advertising. 
D) driving competitors out of business. 
E) joint ventures.

Question 16

Give an example of an industry that has recently undergone a technological paradigm shift.What impact did the shift have on established companies? On new entrants to the industry?

Accepted Answer

Many industries in retailing and manufac

Question 17

An industry is considered to be high technology,or high tech,when

Accepted Answer

A) its products are electronic or electrical. 
B) the firms in the industry own intellectual property. 
C) its products are computers or are related to computers. 
D) the firms are innovative. 
E) the underlying scientific knowledge that companies in the industry use is advancing rapidly. 
A) its products are electronic or electrical. 
B) the firms in the industry own intellectual property. 
C) its products are computers or are related to computers. 
D) the firms are innovative. 
E) the underlying scientific knowledge that companies in the industry use is advancing rapidly.

Question 18

What percentage of the world's PCs adhere to the Wintel standard?

Accepted Answer

A) 95% 
B) 50% 
C) 20% 
D) 75% 
E) 5% 
A) 95% 
B) 50% 
C) 20% 
D) 75% 
E) 5%

Question 19

One important advantage of being a first mover is that it guarantees success.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following economic benefits result from the use of standards?

Accepted Answer

A) Compatibility 
B) Reduction in confusion 
C) Reduction in production costs 
D) Reduction of risk in supplying complementary products 
E) All of these choices 
A) Compatibility 
B) Reduction in confusion 
C) Reduction in production costs 
D) Reduction of risk in supplying complementary products 
E) All of these choices

Aggressive marketing is a key factor in jump-starting demand to get potential early adopters to bear the switching costs associated with adopting a new innovation.

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

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

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

Microsoft released its latest operating system,Windows Vista,and intended it to replace earlier versions of Windows.Buyers of Vista had to learn how to use the features of the new software; thus,buyers were facing

Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

A razor-and-blade strategy refers to lowering a company's cost structure.

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

When an industry's products rely on a common set of features,these features are called a

Digital music downloads have high marginal costs.

Switching costs are the costs that consumers must bear to switch from a product based on one technological standard to a product based on another.

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

The law of diminishing returns states that marginal costs fall as a company tries to expand output.

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

The various strategies that companies should adopt to win format wars revolve around

Give an example of an industry that has recently undergone a technological paradigm shift.What impact did the shift have on established companies? On new entrants to the industry?

An industry is considered to be high technology,or high tech,when

What percentage of the world's PCs adhere to the Wintel standard?

One important advantage of being a first mover is that it guarantees success.

Which of the following economic benefits result from the use of standards?

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

Exam 7: Strategy and Technology

Aggressive marketing is a key factor in jump-starting demand to get potential early adopters to bear the switching costs associated with adopting a new innovation.

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

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

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

Microsoft released its latest operating system,Windows Vista,and intended it to replace earlier versions of Windows.Buyers of Vista had to learn how to use the features of the new software; thus,buyers were facing

Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

A razor-and-blade strategy refers to lowering a company's cost structure.

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

When an industry's products rely on a common set of features,these features are called a

Digital music downloads have high marginal costs.

Switching costs are the costs that consumers must bear to switch from a product based on one technological standard to a product based on another.

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

The law of diminishing returns states that marginal costs fall as a company tries to expand output.

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

The various strategies that companies should adopt to win format wars revolve around

Give an example of an industry that has recently undergone a technological paradigm shift.What impact did the shift have on established companies? On new entrants to the industry?

An industry is considered to be high technology,or high tech,when

What percentage of the world's PCs adhere to the Wintel standard?

One important advantage of being a first mover is that it guarantees success.

Which of the following economic benefits result from the use of standards?

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