Question 1

Dolby Laboratories' exploited a positive feedback loop in becoming the standard for sound quality.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Microsoft Word word-processing software is so easy to use and has so many useful features that no other software can compete with it.Therefore,Microsoft Word is a killer application.

Accepted Answer

A) True 
 B)False

Question 4

Intellectual property refers to

Accepted Answer

A) the product of a manufacturing activity. 
B) a narrow range of intellectual pursuits. 
C) the product of any intellectual and creative effort. 
D) any idea produced for profit. 
E) nonfinancial ideas and concepts. 
A) the product of a manufacturing activity. 
B) a narrow range of intellectual pursuits. 
C) the product of any intellectual and creative effort. 
D) any idea produced for profit. 
E) nonfinancial ideas and concepts.

Question 5

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 6

Which of the following has been thought of as a high-technology industry?

Accepted Answer

A) Computers 
B) Telecommunications 
C) Consumer electronics 
D) Pharmaceuticals 
E) All of these choices 
A) Computers 
B) Telecommunications 
C) Consumer electronics 
D) Pharmaceuticals 
E) All of these choices

Question 7

In 2001,Intel spent $7.5 billion to upgrade its facilities so it could produce the Pentium 4 semiconductor chip.Each chip cost $130 to make and sold for $200 each.What is the marginal cost of a Pentium 4 chip?

Accepted Answer

A) $70 
B) $130 
C) $200 
D) $7.5 billion divided by the number of chips produced 
E) $7.5 billion 
A) $70 
B) $130 
C) $200 
D) $7.5 billion divided by the number of chips produced 
E) $7.5 billion

Question 8

When a standard exists in the public domain,

Accepted Answer

A) the standard was created from outside the mainstream of the industry. 
B) consumers selectively chose that standard. 
C) the government chose the standard that would best serve the public's interests. 
D) the standard may be used by any company. 
E) the standard was developed in an open and cooperative fashion. 
A) the standard was created from outside the mainstream of the industry. 
B) consumers selectively chose that standard. 
C) the government chose the standard that would best serve the public's interests. 
D) the standard may be used by any company. 
E) the standard was developed in an open and cooperative fashion.

Question 9

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 10

Which of the following are major sources of first-mover advantages?

Accepted Answer

A) An opportunity to exploit network effects 
B) The ability to establish significant brand loyalty 
C) The ability to ramp up sales volume before rivals can 
D) The ability to accumulate valuable knowledge of consumer needs 
E) All of these choices 
A) An opportunity to exploit network effects 
B) The ability to establish significant brand loyalty 
C) The ability to ramp up sales volume before rivals can 
D) The ability to accumulate valuable knowledge of consumer needs 
E) All of these choices

Question 11

Digitalization refers to

Accepted Answer

A) the increasing use of the Internet in corporations. 
B) a firm's database of client information. 
C) manufacturing with the aid of robotics. 
D) turning intellectual property into digital form. 
E) the use of encryption software to protect intellectual property. 
A) the increasing use of the Internet in corporations. 
B) a firm's database of client information. 
C) manufacturing with the aid of robotics. 
D) turning intellectual property into digital form. 
E) the use of encryption software to protect intellectual property.

Question 12

When standards are part of the public domain,they can be used

Accepted Answer

A) only by companies in a particular industry. 
B) only by federal contractors. 
C) by paying a fee to the Federal Communications Commission (FC
C) . 
D) freely by any company. 
E) once without payment of a fee. 
A) only by companies in a particular industry. 
B) only by federal contractors. 
C) by paying a fee to the Federal Communications Commission (FC
C) . 
D) freely by any company. 
E) once without payment of a fee.

Question 13

Which of the following is not a basic strategy for a first mover?

Accepted Answer

A) Develop and market the innovation itself 
B) Develop and market the innovation jointly with other companies through a strategic alliance or joint venture 
C) License the innovation to others 
D) Discourage development of complementary assets 
E) All of these choices 
A) Develop and market the innovation itself 
B) Develop and market the innovation jointly with other companies through a strategic alliance or joint venture 
C) License the innovation to others 
D) Discourage development of complementary assets 
E) All of these choices

Question 14

When two or more companies are competing with each other to get their technology adopted as a standard in an industry,and when network effects and positive feedback loops are important,the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Accepted Answer

A) True 
 B)False

Question 15

At the moment,Motorola appears to have the advantage in format for the next generation of TV and DVD players.

Accepted Answer

A) True 
 B)False

Question 16

The razor-and-blade strategy was pioneered by

Accepted Answer

A) Procter & Gamble. 
B) Sony. 
C) Toyota. 
D) Ford. 
E) Gillette. 
A) Procter & Gamble. 
B) Sony. 
C) Toyota. 
D) Ford. 
E) Gillette.

Question 17

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 18

Marginal costs in high-technology industries tend to stay very low as production rises.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Dolby Laboratories' exploited a positive feedback loop in becoming the standard for sound quality.

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

Microsoft Word word-processing software is so easy to use and has so many useful features that no other software can compete with it.Therefore,Microsoft Word is a killer application.

Intellectual property refers to

Often,the industry standard is selected competitively by

Which of the following has been thought of as a high-technology industry?

In 2001,Intel spent $7.5 billion to upgrade its facilities so it could produce the Pentium 4 semiconductor chip.Each chip cost $130 to make and sold for $200 each.What is the marginal cost of a Pentium 4 chip?

When a standard exists in the public domain,

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

Which of the following are major sources of first-mover advantages?

Digitalization refers to

When standards are part of the public domain,they can be used

Which of the following is not a basic strategy for a first mover?

When two or more companies are competing with each other to get their technology adopted as a standard in an industry,and when network effects and positive feedback loops are important,the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

At the moment,Motorola appears to have the advantage in format for the next generation of TV and DVD players.

The razor-and-blade strategy was pioneered by

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

Marginal costs in high-technology industries tend to stay very low as production rises.

Marginal cost refers to the cost of

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

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

Dolby Laboratories' exploited a positive feedback loop in becoming the standard for sound quality.

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

Microsoft Word word-processing software is so easy to use and has so many useful features that no other software can compete with it.Therefore,Microsoft Word is a killer application.

Intellectual property refers to

Often,the industry standard is selected competitively by

Which of the following has been thought of as a high-technology industry?

In 2001,Intel spent $7.5 billion to upgrade its facilities so it could produce the Pentium 4 semiconductor chip.Each chip cost $130 to make and sold for $200 each.What is the marginal cost of a Pentium 4 chip?

When a standard exists in the public domain,

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

Which of the following are major sources of first-mover advantages?

Digitalization refers to

When standards are part of the public domain,they can be used

Which of the following is not a basic strategy for a first mover?

When two or more companies are competing with each other to get their technology adopted as a standard in an industry,and when network effects and positive feedback loops are important,the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

At the moment,Motorola appears to have the advantage in format for the next generation of TV and DVD players.

The razor-and-blade strategy was pioneered by

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

Marginal costs in high-technology industries tend to stay very low as production rises.

Marginal cost refers to the cost of

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

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