Question 1

The book suggests that one of six ways that new business is typically formed involves new distribution channels.

Accepted Answer

A) True 
 B)False  False

Question 2

Blue ocean businesses and red ocean businesses both generally allow for above average earnings.

Accepted Answer

A) True 
 B)False  False

Question 3

Curses that plague new businesses include success and substantial availability of resources.

Accepted Answer

A) True 
 B)False  True

Question 4

Many blue ocean businesses can take one of two approaches to lower price points: ____________ or ____________.

Accepted Answer

The answer of Many blue ocean businesses can take one...

Question 5

Drucker advises innovators to try to innovate for the future.

Accepted Answer

A) True 
 B)False

Question 6

Barriers to long term success in existing product-markets do not include which of the following:

Accepted Answer

A)   Markets are so dynamic that this is easy to bet behind and become less relevant.
B)   Overcapacity in existing markets.
C)   Transparency issues.
D)   Fast responses by competitors
E)   Low cost benefit ratio for incumbent organizations.

Question 7

Transformational new business arenas can be based on offering a dramatically lower price point, analyzing alternative industries to find white space, offering a systems rather than components, building on customer insights or market trends and by collaborating with other people and firms.

Accepted Answer

A) True 
 B)False

Question 8

Innovator's advantage provides the competitive advantages such as competitors' inability to respond in a timely manner, competitors' inability to respond at all, or that the innovator cultivates a customer loyalty with its position in the market.

Accepted Answer

A) True 
 B)False

Question 9

The highest rated brand on perceived innovativeness was iPod.

Accepted Answer

A) True 
 B)False

Question 10

Innovation can create what is often termed as __________.

Accepted Answer

The answer of Innovation can create what is often termed...

Question 11

Low-end disruptive innovation is where industries are altered by emerging products that feature a price that appears dramatically low. Incumbent firms often employ this strategy.

Accepted Answer

A) True 
 B)False

Question 12

Successful early market leaders survive the difficulties of a first mover advantage by envisioning the mass market, maintaining managerial persistence, financial commitment, _____________ and _____________.

Accepted Answer

The answer of Successful early market leaders survive the difficulties...

Question 13

Kirin was unable to compete with Asahi in part because of the authentic label.

Accepted Answer

A) True 
 B)False

Question 14

True market pioneers often survive because they enter the market first and build position and are able to withstand technological advances.

Accepted Answer

A) True 
 B)False

Question 15

Successful early market leaders tend to get traction in a smaller market before looking to the mass market.

Accepted Answer

A) True 
 B)False

Exam 13: Creating New Business

The book suggests that one of six ways that new business is typically formed involves new distribution channels.

Blue ocean businesses and red ocean businesses both generally allow for above average earnings.

Curses that plague new businesses include success and substantial availability of resources.

Many blue ocean businesses can take one of two approaches to lower price points: or .

Drucker advises innovators to try to innovate for the future.

Barriers to long term success in existing product-markets do not include which of the following:

Transformational new business arenas can be based on offering a dramatically lower price point, analyzing alternative industries to find white space, offering a systems rather than components, building on customer insights or market trends and by collaborating with other people and firms.

Innovator's advantage provides the competitive advantages such as competitors' inability to respond in a timely manner, competitors' inability to respond at all, or that the innovator cultivates a customer loyalty with its position in the market.

The highest rated brand on perceived innovativeness was iPod.

Innovation can create what is often termed as __________.

Low-end disruptive innovation is where industries are altered by emerging products that feature a price that appears dramatically low. Incumbent firms often employ this strategy.

Successful early market leaders survive the difficulties of a first mover advantage by envisioning the mass market, maintaining managerial persistence, financial commitment, _ and _.

Kirin was unable to compete with Asahi in part because of the authentic label.

True market pioneers often survive because they enter the market first and build position and are able to withstand technological advances.

Successful early market leaders tend to get traction in a smaller market before looking to the mass market.