Question 1

A possible strategy for winning a format war is for a company to make sure that,in addition to the product itself,there is an adequate supply of complements.

Accepted Answer

A) True 
 B)False

Question 2

If a first mover has complementary assets,barriers to imitation are high,and capable competitors are few,the first mover should

Accepted Answer

A) license the innovation to others. 
B) develop and market the innovation jointly with other companies through a strategic alliance or joint venture. 
C) develop and market the innovation itself. 
D) sell the technology outright to another firm. 
E) wait until competitors develop an alternative product. 
A) license the innovation to others. 
B) develop and market the innovation jointly with other companies through a strategic alliance or joint venture. 
C) develop and market the innovation itself. 
D) sell the technology outright to another firm. 
E) wait until competitors develop an alternative product.

Question 3

Aggressive marketing to jump-start demand for a product often involves

Accepted Answer

A) substantial upfront marketing. 
B) point-of-sale promotion techniques. 
C) low introductory prices. 
D) use of free sampling. 
E) all of these choices. 
A) substantial upfront marketing. 
B) point-of-sale promotion techniques. 
C) low introductory prices. 
D) use of free sampling. 
E) all of these choices.

Question 4

Killer applications are applications or uses of a new technology or product that

Accepted Answer

A) are so compelling they persuade customers to adopt or use the new technology in droves. 
B) drive consumers to the products or technology of another company. 
C) repulse new customers. 
D) kill demand for the product or technology. 
E) backfire on the company producing them. 
A) are so compelling they persuade customers to adopt or use the new technology in droves. 
B) drive consumers to the products or technology of another company. 
C) repulse new customers. 
D) kill demand for the product or technology. 
E) backfire on the company producing them.

Question 5

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.

Question 6

Which of the following is not a true statement?

Accepted Answer

A) First movers are the first to recover the costs of a new technology. 
B) First movers have higher pioneering costs than do later entrants. 
C) Later entrants can avoid the mistakes of first movers. 
D) Later entrants have lower pioneering costs than do first movers. 
E) First movers are more likely to make mistakes than are later entrants. 
A) First movers are the first to recover the costs of a new technology. 
B) First movers have higher pioneering costs than do later entrants. 
C) Later entrants can avoid the mistakes of first movers. 
D) Later entrants have lower pioneering costs than do first movers. 
E) First movers are more likely to make mistakes than are later entrants.

Question 7

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 8

Describe the advantages and disadvantages of being a first mover or a follower in a high-tech industry.In your opinion,which strategy is preferable,and why?

Accepted Answer

First movers have these advantages: a mo

Question 9

Which of the following is not one of the benefits that first movers enjoy?

Accepted Answer

A) Earlier benefits from economies of scale 
B) Ability to create customer switching costs 
C) First to obtain brand loyalty 
D) Ability to accumulate knowledge about the market 
E) Lower pioneering costs 
A) Earlier benefits from economies of scale 
B) Ability to create customer switching costs 
C) First to obtain brand loyalty 
D) Ability to accumulate knowledge about the market 
E) Lower pioneering costs

Question 10

Which of the following factors is a disadvantage of being a first mover?

Accepted Answer

A) First movers have to bear pioneering costs. 
B) First movers are prone to make mistakes. 
C) First movers run the risk of building the wrong resources and capabilities. 
D) First movers may invest in inferior or obsolete technology. 
E) All of these choices. 
A) First movers have to bear pioneering costs. 
B) First movers are prone to make mistakes. 
C) First movers run the risk of building the wrong resources and capabilities. 
D) First movers may invest in inferior or obsolete technology. 
E) All of these choices.

Question 11

Ownership of an industry standard that is protected from imitation by patents and copyrights is a weak organizational resource.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Licensing a format to other enterprises is often used by a company so that the company can

Accepted Answer

A) earn substantial license fees without having to manufacture products. 
B) create a monopoly. 
C) produce products that can be based on the licensed format. 
D) all of these choices. 
E) none of these choices. 
A) earn substantial license fees without having to manufacture products. 
B) create a monopoly. 
C) produce products that can be based on the licensed format. 
D) all of these choices. 
E) none of these choices.

Question 14

Makers of complementary products will begin large-scale production when

Accepted Answer

A) the first mover introduces a new product. 
B) the dominant design is changing. 
C) consumer demand reaches the plateau of maturity. 
D) the technical standard is firmly established. 
E) industry participants begin to purchase from suppliers. 
A) the first mover introduces a new product. 
B) the dominant design is changing. 
C) consumer demand reaches the plateau of maturity. 
D) the technical standard is firmly established. 
E) industry participants begin to purchase from suppliers.

Question 15

Consider a cost curve,with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

Accepted Answer

A) Upward at a 45-degree angle 
B) U-shape 
C) Straight and vertical 
D) J-shape 
E) Straight and flat 
A) Upward at a 45-degree angle 
B) U-shape 
C) Straight and vertical 
D) J-shape 
E) Straight and flat

Question 16

Technological disruption

Accepted Answer

A) typically happens slowly. 
B) is usually begun by the industry leaders. 
C) affects mostly small niche markets. 
D) causes firms to adopt a new business model. 
E) is a problem primarily in embryonic industries. 
A) typically happens slowly. 
B) is usually begun by the industry leaders. 
C) affects mostly small niche markets. 
D) causes firms to adopt a new business model. 
E) is a problem primarily in embryonic industries.

Question 17

In the past,format wars have been relatively common in the consumer electronics industry.

Accepted Answer

A) True 
 B)False

Question 18

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

Accepted Answer

A) license the innovation to others. 
B) enter into a joint venture to protect the product. 
C) produce the product itself. 
D) sell the technology outright to another firm. 
E) wait until competitors develop an alternative product. 
A) license the innovation to others. 
B) enter into a joint venture to protect the product. 
C) produce the product itself. 
D) sell the technology outright to another firm. 
E) wait until competitors develop an alternative product.

Question 19

Technological paradigm shifts occur when new technologies come along that revolutionize the structure of the industry,dramatically alter the nature of competition,and require companies to adopt new strategies to survive.

Accepted Answer

A) True 
 B)False

Question 20

It can be argued that Microsoft's near monopoly of PC operating systems helped raise the level of industry profitability.

Accepted Answer

A) True 
 B)False

A possible strategy for winning a format war is for a company to make sure that,in addition to the product itself,there is an adequate supply of complements.

If a first mover has complementary assets,barriers to imitation are high,and capable competitors are few,the first mover should

Aggressive marketing to jump-start demand for a product often involves

Killer applications are applications or uses of a new technology or product that

Consumers will bear the costs of switching technologies when

Which of the following is not a true statement?

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

Describe the advantages and disadvantages of being a first mover or a follower in a high-tech industry.In your opinion,which strategy is preferable,and why?

Which of the following is not one of the benefits that first movers enjoy?

Which of the following factors is a disadvantage of being a first mover?

Ownership of an industry standard that is protected from imitation by patents and copyrights is a weak organizational resource.

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

Licensing a format to other enterprises is often used by a company so that the company can

Makers of complementary products will begin large-scale production when

Consider a cost curve,with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

Technological disruption

In the past,format wars have been relatively common in the consumer electronics industry.

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

Technological paradigm shifts occur when new technologies come along that revolutionize the structure of the industry,dramatically alter the nature of competition,and require companies to adopt new strategies to survive.

It can be argued that Microsoft's near monopoly of PC operating systems helped raise the level of industry profitability.

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

A possible strategy for winning a format war is for a company to make sure that,in addition to the product itself,there is an adequate supply of complements.

If a first mover has complementary assets,barriers to imitation are high,and capable competitors are few,the first mover should

Aggressive marketing to jump-start demand for a product often involves

Killer applications are applications or uses of a new technology or product that

Consumers will bear the costs of switching technologies when

Which of the following is not a true statement?

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

Describe the advantages and disadvantages of being a first mover or a follower in a high-tech industry.In your opinion,which strategy is preferable,and why?

Which of the following is not one of the benefits that first movers enjoy?

Which of the following factors is a disadvantage of being a first mover?

Ownership of an industry standard that is protected from imitation by patents and copyrights is a weak organizational resource.

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

Licensing a format to other enterprises is often used by a company so that the company can

Makers of complementary products will begin large-scale production when

Consider a cost curve,with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

Technological disruption

In the past,format wars have been relatively common in the consumer electronics industry.

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

Technological paradigm shifts occur when new technologies come along that revolutionize the structure of the industry,dramatically alter the nature of competition,and require companies to adopt new strategies to survive.

It can be argued that Microsoft's near monopoly of PC operating systems helped raise the level of industry profitability.

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