Question 1

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) Increase height of imitation barriers 
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) Increase height of imitation barriers

Question 2

An adequate supply of complements to a product results in:

Accepted Answer

A) more customers opting for the product. 
B) higher switching costs. 
C) a significant decrease in the sales of the product. 
D) a significant decrease in customer demand for the product. 
E) the company failing to win a format war. 
A) more customers opting for the product. 
B) higher switching costs. 
C) a significant decrease in the sales of the product. 
D) a significant decrease in customer demand for the product. 
E) the company failing to win a format war.

Question 3

Aggressive marketing in the context of format wars:

Accepted Answer

A) deters early adopters. 
B) helps a company jump-start demand. 
C) results in lower emphasis on killer applications. 
D) does not encompass point-of-sales promotion techniques. 
E) usually triggers a negative feedback loop. 
A) deters early adopters. 
B) helps a company jump-start demand. 
C) results in lower emphasis on killer applications. 
D) does not encompass point-of-sales promotion techniques. 
E) usually triggers a negative feedback loop.

Question 4

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 5

In case of emergence of a disruptive technology, established companies should:

Accepted Answer

A) avoid investing in newly emerging technologies that may ultimately become disruptive technologies. 
B) ask customers "Are you interested in this new technology?" 
C) acquire newly emerging companies that are pioneering potentially disruptive technologies. 
D) reduce costs on research and development activities. 
E) avoid commercializing new technologies. 
A) avoid investing in newly emerging technologies that may ultimately become disruptive technologies. 
B) ask customers "Are you interested in this new technology?" 
C) acquire newly emerging companies that are pioneering potentially disruptive technologies. 
D) reduce costs on research and development activities. 
E) avoid commercializing new technologies.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

What are technical standards, why are they important, and how are they established?

Accepted Answer

Technical standards refer to a set of te

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

An advantage of being a first mover is that:

Accepted Answer

A) the pioneering costs are minimal. 
B) there are well-defmed distribution channels. 
C) there is no risk of building the wrong resources. 
D) the focus is always on the mass market. 
E) there is an opportunity to increase sales volume ahead of rivals. 
A) the pioneering costs are minimal. 
B) there are well-defmed distribution channels. 
C) there is no risk of building the wrong resources. 
D) the focus is always on the mass market. 
E) there is an opportunity to increase sales volume ahead of rivals.

Question 12

Libra Electronics has invented a new technology to make laptops that are extremely lightweight and unbreakable. The company is advertising aggressively and wishes to create demand for its new range of laptops.To attract customers, the company has priced the laptops attractively.However, in order to make profits, the company has priced the batteries required for the laptops extremely high.Which of the following is illustrated in this scenario?

Accepted Answer

A) downsizing strategy. 
B) harvest strategy. 
C) razor and blade strategy. 
D) divestment strategy. 
E) switching costs. 
A) downsizing strategy. 
B) harvest strategy. 
C) razor and blade strategy. 
D) divestment strategy. 
E) switching costs.

Question 13

Mathernatica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer.It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix.Mathernatica 1.0 can be described as a(n) application.

Accepted Answer

A) dominant 
B) analogous 
C) hardware 
D) strategic 
E) killer 
A) dominant 
B) analogous 
C) hardware 
D) strategic 
E) killer

Question 14

In many high-tech industries, the fixed costs of developing a product are very high, but the costs of producing one extra unit of the product are very low.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

There is a set of fixed specifications for turbine blades for jet engines.The specifications include the material that needs to be used to manufacture the blades and also the specific dimensions that they need to have; the same specifications are used by all manufacturers.In this scenario, the specifications for jet blades can be referred to as:

Accepted Answer

A) format wars. 
B) technical standards. 
C) technological paradigm shifts. 
D) first movers 
E) razor and blade strategies. 
A) format wars. 
B) technical standards. 
C) technological paradigm shifts. 
D) first movers 
E) razor and blade strategies.

Question 17

Network effects arise in industries where the size ofthe"network" of complementary products is a primary determinant of demand for an industry's product.

Accepted Answer

A) True 
 B)False

Question 18

A technical standard helps to guarantee compatibility between products and their complements.

Accepted Answer

A) True 
 B)False

Question 19

An example of an important complementary asset is a state-of-the-art manufacturing facility.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

An adequate supply of complements to a product results in:

Aggressive marketing in the context of format wars:

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?

In case of emergence of a disruptive technology, established companies should:

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

What are technical standards, why are they important, and how are they established?

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

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

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

An advantage of being a first mover is that:

Mathernatica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer.It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix.Mathernatica 1.0 can be described as a(n) application.

In many high-tech industries, the fixed costs of developing a product are very high, but the costs of producing one extra unit of the product are very low.

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

Network effects arise in industries where the size ofthe"network" of complementary products is a primary determinant of demand for an industry's product.

A technical standard helps to guarantee compatibility between products and their complements.

An example of an important complementary asset is a state-of-the-art manufacturing facility.

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

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

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

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

An adequate supply of complements to a product results in:

Aggressive marketing in the context of format wars:

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?

In case of emergence of a disruptive technology, established companies should:

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

What are technical standards, why are they important, and how are they established?

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

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

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

An advantage of being a first mover is that:

Mathernatica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer.It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix.Mathernatica 1.0 can be described as a(n) application.

In many high-tech industries, the fixed costs of developing a product are very high, but the costs of producing one extra unit of the product are very low.

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

Network effects arise in industries where the size ofthe"network" of complementary products is a primary determinant of demand for an industry's product.

A technical standard helps to guarantee compatibility between products and their complements.

An example of an important complementary asset is a state-of-the-art manufacturing facility.

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

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

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