Exam 6: Crafting Business Strategy of Dynamic Contexts

A technological discontinuity is an innovation that dramatically advances an industry's price-versus-performance frontier.

Over time, a change in the basis of competitive advantage will cause advantage to shift from firms favored by industry conditions to those with obsolete resources and capabilities.

If new technology is introduced by a new entrant, it stands a good chance to attain market dominance.

The speed of change is a critical factor in keeping up with the basis of competition in an industry.

A turbulent environment is characterized by bold dynamic moves on the part of competitors.

Several uses have emerged from the technology developed by credit card companies. Which is not one of these uses?

What is a real option?

What can firms do to avoid or withstand a technological discontinuity?

Diagram the relationship between the status of complementary assets and the bases of first-mover advantages.

Exit options give firms the option to walk away from a project in response to new information.

Sometimes the time period between first movers and second movers may be several weeks or several years.

To excel at a(n) ________ strategy, a firm must assume the role of first mover.

A value chain is the sequential steps of value-added activities that are necessary to create ________.

Reacting to change involves responding to all of the following except ________.

The value curve is a convenient tool to help managers visualize how new disruptions might be targeted.

All of the following should be considered by a firm contemplating a first-mover strategy except ________.

Reacting to change means foreseeing the emergence of complementary technologies.

What is the containment strategy?

A firm that is a second mover is also a late mover.

Phase 3 of competitive interaction is characterized by customer reactions.