Exam 10: Innovative Strategies That Change the Nature of Competition

_____ coined the term hypercompetition.

Palm's, a new restaurant in Boston, enters the market with a new strategy.Cooking enthusiasts can co-create a dish for their family along with the in-house chefs.They also allow families to cook their meals together and dine by the poolside.None of the other restaurants in the city offers this unique service.This is an example of a _____.

A salon that specializes in haircuts comes up with a new service that sets it apart from those of its rivals.Clients are requested to send in their photographs; the stylists then create a set of digital images with various looks.Once the client chooses a desired look, a stylist goes to the client's home to deliver the service.The strategy of creating digital images, which requires a unique set of resources and skills, is an example of a(n) _____.

Define two general categories of innovations.

Which of the following statements is true of a bundling strategy?

Peach Corp.continues to refine its chocolate products even as they look for innovative ways to reach customers through marketing and new distribution channels.In this case, the organization is in the _____ stage of the product life cycle.

An automobile company used its profits from the sale of motorcycles to invest in the development of cars.These cars were less expensive but technologically more advanced than those of its competitors.This is an example of _____.

Which of the following statements is true of a firm that creates a radical innovation?

Mel Inc., a popular cosmetics and perfume brand, delivers free samples with products worth $75 and more.This is an example of _____.

Nathan, a designer at Zeal Inc., comes up with a new idea.While Nathan considers turning it into a piece of art, Ricky, his colleague, suggests converting the idea into a product that generates revenue.Ricky's suggestion to convert the idea into a revenue-generating product refers to a(n) _____.

Ochre Inc.uses the freemium strategy to enter a market.This strategy becomes successful and the organization gains a wide customer base.Which of the following is likely to be true in this case?

A clothing manufacturer produces some basic models on a large scale.The customers can then choose print, color, embellishments, and size and place a specific order.Which of the following is being exemplified in this case?

Explain mass customization with an example.

A(n) _____ describes the creation of a unique or novel concept, method or process that is often turned into a tangible outcome.

Which of the following statements is true of the blue ocean strategy?

Which of the following is true of the introduction stage of the product life cycle?

Jobs Now is an employment website.Like its competitors, it offers free listings in every category, which is free for job seekers but not for companies.This feature of Jobs Now is an example of _____.

A software firm decides to offer its products at a lower price.In order to reduce costs, it outsources some of its in-house functions to countries that offer less expensive labor.As a result, it gains a cost advantage.The strategy adopted by this firm is an example of _____.

Which of the following statements is true of an incremental innovation?

Crimson Inc.initially introduced a new gadget to the niche market.Eventually, other organizations provided the same product at a lower price.Hence, Crimson had to reduce the price of the gadget to the market price.This is an example of a _____.