Exam 10: Innovative Strategies That Change the Nature of Competition

Gem Inc.a clothing manufacturer, creates a new strategy to increase its customer base.Maya, a marketing student, observes that Gem engages in disintermediation, while Nate, her friend, believes that this observation is incorrect.Which of the following statements is likely to support Maya's observation?

Which of the following statements is true of a high-end disruptive innovation?

Zolac Inc.is an online store that sells lifestyle products.It offers 15% discount on weekend purchases.This marketing strategy is an example of a _____.

Lica Inc., a software company, initially offers a small percentage of its services for free.Once customers get familiar with the services, they decide to purchase them at a premium.The company makes money on the add-on services like application downloads, messenger updates, and other online services.Other companies pay Lica for advertising through these portals.Which of the following innovative strategies has been adopted by the company?

J.J.Inc., a software company, was the first to create a customized messenger application.The subscribers can choose the features they wish to install.The value offered by J.J.is different from its competitors in the market.Which of the following is being exemplified in this case?

Prints Inc., offers visiting cards, brochures, business cards, and personalized greeting cards.It allows customers to choose from a set of modules and create their own designs.Which of the following is being exemplified in this case?

Lila, the CEO of Purple Inc., a bag manufacturing company, observes that customers prefer some personalized features.She considers implementing a mass customization strategy, while the production manager, Steven, suggests that standardization is the best strategy.Which of the following will strengthen Lila's decision?

Inks Corp.is a manufacturer of pens.It creates a new product called  HYPERLINK "http://en.wikipedia.org/wiki/Quink" \o "Quink" Quink, a quick-drying ink pen that does not require the use of blotting paper.It creates this product by building on its established knowledge of the properties of ink and the mechanisms of a pen.Which of the following innovations is being exemplified in this case?

Groups of people who share similar needs and thus are likely to desire the same features in a product are called _____.

What are low-end disruptive innovations? Explain with an example.

Stars Corp.decides to eliminate activities associated with collecting and storing the products by directly distributing the finished goods to its customers.This enabled Stars to reduce the total cost.Which of the following is being exemplified in this case?

Flytech Inc.is an online store where people and businesses buy and sell a broad variety of goods and services.Various brands pay Flytech to advertise and sell their products online.Which of the following is being exemplified in this case?

The approach, or pricing strategy, a company uses to get paid for the value it delivers through its business model is called the _____.

Pearl Corp., a manufacturer of dental equipment, creates a new instrument.With the experience it has in creating small equipment required for dental surgeries, it customizes the new tool to be more accurate and effective.It also comes with an improvised handle.Which of the following innovations has Pearl adopted in this scenario?

_____ refers to Professor Rich's argument that competitive intensity has increased, and that periods of competitive advantage have decreased.

Which of the following statements is true of a third-party pay strategy?

An automobile manufacturer creates high-performance products, which are new in the market.Since the product offers features that are unique, customers were willing to pay a high price for the product.However, after a couple of months, other brands offered the same features at a lower price, which made the innovators reduce the price as well.Which of the following innovations is being exemplified in this scenario?

Explain the four stages of the product life cycle.

An organization launched a new product in the market.It offered a free trial of the basic model to gain widespread initial use, after which users were offered a nonfree premium version of the same product.Which of the following strategies is used by the company in this case?

A telecommunications service provider, Chrome Inc., creates a new application for its users.The application allows users to make free calls through the Internet.While this increased the number of paid subscribers of Chrome, its competitors who levied a fee for their telecommunication services lost their customers.This is an example of a _____.