Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Technical standards in high-technology industries are:

Accepted Answer

A) specifications developed by each producing company for its own products and product components. 
B) specifications that producers adhere to when making a product or a component. 
C) product specifications imposed by the federal goverrnnent. 
D) product features desired by consumers. 
E) general guidelines proposed by industry leaders. 
A) specifications developed by each producing company for its own products and product components. 
B) specifications that producers adhere to when making a product or a component. 
C) product specifications imposed by the federal goverrnnent. 
D) product features desired by consumers. 
E) general guidelines proposed by industry leaders.

Question 3

are applications or uses of a new technology or product that are so compelling that customers adopt them in droves, curbing the demand for competing formats.

Accepted Answer

A) Killer applications 
B) Razor and blade applications 
C) Technical standards 
D) Network effects 
E) Concurrency control applications 
A) Killer applications 
B) Razor and blade applications 
C) Technical standards 
D) Network effects 
E) Concurrency control applications

Question 4

Network effects arise in an industry where:

Accepted Answer

A) the size of the network of complementary products is a primary determinant of demand for an industry's product. 
B) a large network of companies in an industry use the same business model and strategies. 
C) a company is able to adhere to the same technical standards across its network of outlets. 
D) companies network together and lobby for establishing certain technical standards. 
E) companies that are not in favor of a technical standard network together. 
A) the size of the network of complementary products is a primary determinant of demand for an industry's product. 
B) a large network of companies in an industry use the same business model and strategies. 
C) a company is able to adhere to the same technical standards across its network of outlets. 
D) companies network together and lobby for establishing certain technical standards. 
E) companies that are not in favor of a technical standard network together.

Question 5

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 6

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 the following advantag

Question 7

Which of the following statements is true about establishing technical standards?

Accepted Answer

A) Companies in an industry cannot lobby the government to mandate an industry standard. 
B) Technical standards are often set by cooperation among businesses, without government help. 
C) Companies cannot adopt technical standards that are in the public domain. 
D) Market demand is not taken into consideration when it comes to establishing technical standards. 
E) The strategy and business model a company has developed for promoting its technological standard holds little importance when it comes to establishing standards. 
A) Companies in an industry cannot lobby the government to mandate an industry standard. 
B) Technical standards are often set by cooperation among businesses, without government help. 
C) Companies cannot adopt technical standards that are in the public domain. 
D) Market demand is not taken into consideration when it comes to establishing technical standards. 
E) The strategy and business model a company has developed for promoting its technological standard holds little importance when it comes to establishing standards.

Question 8

Which of the following statements is true about new entrants in the context of a technological paradigm shift?

Accepted Answer

A) New entrant often face the risks of product cannibalization. 
B) Pressures to continue the existing out-of-date business model hamstring new entrants. 
C) New entrants do not need to worry about their established customer base. 
D) It is difficult for new entrants to focus all their energies on the opportunities offered by the new disruptive technology. 
E) New entrants are not constrained by lack of capital. 
A) New entrant often face the risks of product cannibalization. 
B) Pressures to continue the existing out-of-date business model hamstring new entrants. 
C) New entrants do not need to worry about their established customer base. 
D) It is difficult for new entrants to focus all their energies on the opportunities offered by the new disruptive technology. 
E) New entrants are not constrained by lack of capital.

Question 9

Technological paradigm shifts occur when new technologies 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 10

refers to a common set of features in a computer or other machines.

Accepted Answer

A) Paradigm shift 
B) First mover 
C) Public domain 
D) Technical standard 
E) Dominant design 
A) Paradigm shift 
B) First mover 
C) Public domain 
D) Technical standard 
E) Dominant design

Question 11

Venus Corp.a high-technology, gadget-making company has introduced a gaming console with attractive features. Even though the console is priced modestly and has better features than the existing ones, it has failed as many customers are apprehensive about buying it.In order to create demand, Venus Corp.should:

Accepted Answer

A) price the console extremely high. 
B) create its own set of technical standards. 
C) ensure that there are adequate complementary products. 
D) use minirnalistic and subtle advertising and marketing strategies. 
E) avoid licensing the format to other companies. 
A) price the console extremely high. 
B) create its own set of technical standards. 
C) ensure that there are adequate complementary products. 
D) use minirnalistic and subtle advertising and marketing strategies. 
E) avoid licensing the format to other companies.

Question 12

Technical standards are often set by cooperation among businesses, without government help.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a disadvantage of first movers?

Accepted Answer

A) They cannot establish significant brand loyalty due to high costs. 
B) They cannot create switching costs for their customers, thus making it difficult to enter the market. 
C) They decrease sales volume compared to their rivals, and thus operate at a loss. 
D) They run the risk of building the wrong resources and capabilities. 
E) They do not have the power to exploit network effects and positive feedback loops. 
A) They cannot establish significant brand loyalty due to high costs. 
B) They cannot create switching costs for their customers, thus making it difficult to enter the market. 
C) They decrease sales volume compared to their rivals, and thus operate at a loss. 
D) They run the risk of building the wrong resources and capabilities. 
E) They do not have the power to exploit network effects and positive feedback loops.

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

Technical standards in high-technology industries are:

are applications or uses of a new technology or product that are so compelling that customers adopt them in droves, curbing the demand for competing formats.

Network effects arise in an industry where:

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

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 statements is true about establishing technical standards?

Which of the following statements is true about new entrants in the context of a technological paradigm shift?

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

refers to a common set of features in a computer or other machines.

Technical standards are often set by cooperation among businesses, without government help.

Which of the following is a disadvantage of first movers?

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

Exam 7: Strategy and Technology

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

Technical standards in high-technology industries are:

are applications or uses of a new technology or product that are so compelling that customers adopt them in droves, curbing the demand for competing formats.

Network effects arise in an industry where:

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

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 statements is true about establishing technical standards?

Which of the following statements is true about new entrants in the context of a technological paradigm shift?

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

refers to a common set of features in a computer or other machines.

Technical standards are often set by cooperation among businesses, without government help.

Which of the following is a disadvantage of first movers?

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