Question 1

During the later part of the growth stage,many firms turn to ____________ to bring more customers into the market.

Accepted Answer

A)   Lower prices
B)   Diversification
C)   Imitation
D)   Radical innovationE) None of the above
F) B) and D)

Question 2

The disruptive force of the Internet provides opportunities due to the ____________ phenomenon,which allows for customer and product niches to come together online.

Accepted Answer

A)   Proportion tail
B)   Long tail
C)   Incremental market
D)   Bottom-upE) A) and B)
F) A) and C)

Question 3

Discontinuities generally favor ___________ because they don't have entrenched processes and technologies.

Accepted Answer

A)   New entrants
B)   Incumbents
C)   Conglomerates
D)   Diversified firmsE) C) and D)
F) B) and C) A

Question 4

The process of __________ turns an invention into an innovation.

Accepted Answer

A)   Integration
B)   Commercialization
C)   Diversification
D)   ExploitationE) None of the above
F) All of the above

Question 5

As evidenced by the European Union determining that GSM should be the industry standard for cell phones,dominant designs can be driven by top-down decisions made by:

Accepted Answer

A)   Consumer agencies.
B)   Government bodies.
C)   Local activists.
D)   Cultural groups.E) A) and C)
F) C) and D)

Question 6

Intel and Apple are innovators who entered the market during the introduction stage of an industry life cycle.All of the following are characteristics of this stage EXCEPT:

Accepted Answer

A)   Differentiation is the basis of competition.
B)   Network effects increase the value of the offering.
C)   Keeping costs low is the main objective.
D)   Achieving market acceptance is critical.E) A) and B)
F) B) and C)

Question 7

As noted in Strategy Highlight 7.1,_______________ has created part of the growth of the Apple iPhone due to the apps that are available to users.These apps increase the value of the iPhone and thus more people want to own an iPhone with apps.

Accepted Answer

A)   Ignoring the role of complements
B)   Apple's low-cost strategy
C)   The leveraging of network effects
D)   The targeting of "laggards"E) A) and C)
F) A) and B)

Question 8

Inventing is the same thing as innovating.

Accepted Answer

A) True 
 B)False

Question 9

After long periods of competition and innovation,a(n) ____________ is required to "restart" an industry.

Accepted Answer

A)   Government intervention
B)   Radical innovation
C)   Imitation process
D)   Reverse processE) B) and C)
F) All of the above B

Question 10

The first stage of the industry life cycle is Introduction.What characteristics of this stage are attractive to the early adopters who are the major market for this stage?

Accepted Answer

The emphasis is on unique products and n...

Question 11

__________ occur when transactions are not likely to take place because it is difficult to bring niche buyers and niche sellers together.

Accepted Answer

A)   Blended markets
B)   Wide markets
C)   Thin markets
D)   Diluted marketsE) B) and D)
F) B) and C) C

Question 12

Digital photography replacing film photography is an example of which type of innovation?

Accepted Answer

A)   Disruptive
B)   Incremental
C)   Progressive
D)   AlternativeE) B) and C)
F) All of the above

Question 13

A positive implication of the disruptive force of the Internet for a firm is:

Accepted Answer

A)   That there is almost a limitless low-cost shelf-life for product offerings.
B)   That the digitization of products leads to market confusion.
C)   That target markets can no longer be segmented.
D)   That "going digital" makes a firm's product easier to imitate.E) A) and B)
F) All of the above

Question 14

When a disruptive innovation is first introduced to the market,it is generally inferior in performance relative to what currently exists.

Accepted Answer

A) True 
 B)False

Question 15

Gillette introducing updated versions of its razor is an example of which type of innovation?

Accepted Answer

A)   Essential
B)   Disruptive
C)   Radical
D)   IncrementalE) B) and D)
F) A) and B)

Question 16

Which of the following strategies do firms typically employ as competitive intensity increases and the market matures?

Accepted Answer

A)   Turning to radical innovation in order to introduce a new product
B)   Employing manufacturing and process engineering capabilities to drive costs down
C)   Charging high prices in order to capture as much revenue as possible
D)   Adding additional features to the offering to increase perceived valueE) C) and D)
F) B) and D)

Question 17

Paradigm shifts lead to new technological industry standards.

Accepted Answer

A) True 
 B)False

Question 18

Disruptive innovations such as the $200 netbook computer do all of the following EXCEPT:

Accepted Answer

A)   Target existing markets.
B)   Incorporate new technology.
C)   Introduce a radical idea and create a new industry.
D)   Attack the market from the "bottom up."E) All of the above
F) A) and B)

Question 19

Understanding how the "80-20" rule can be applied to the disruptive force of the Internet allows a firm to do all of the following EXCEPT:

Accepted Answer

A)   "Sell less of more" to customers with heterogeneous tastes.
B)   Target the remaining 20 percent of potential sales.
C)   Leverage the Internet to reduce transaction costs.
D)   Charge 20 percent more for online purchases.E) B) and C)
F) All of the above

Question 20

In order for a firm to perform well in each stage of an industry life cycle,it should consistently use the same competencies.

Accepted Answer

A) True 
 B)False

Exam 7: Business Strategy: Innovation and Strategic Entrepreneurship

During the later part of the growth stage,many firms turn to ____________ to bring more customers into the market.

Correct AnswerverifiedShow Answer

The disruptive force of the Internet provides opportunities due to the ____________ phenomenon,which allows for customer and product niches to come together online.

Correct AnswerverifiedShow Answer

Discontinuities generally favor ___________ because they don't have entrenched processes and technologies.

Correct AnswerverifiedA

The process of __________ turns an invention into an innovation.

Correct AnswerverifiedShow Answer

As evidenced by the European Union determining that GSM should be the industry standard for cell phones,dominant designs can be driven by top-down decisions made by:

Correct AnswerverifiedShow Answer

Intel and Apple are innovators who entered the market during the introduction stage of an industry life cycle.All of the following are characteristics of this stage EXCEPT:

Correct AnswerverifiedShow Answer

As noted in Strategy Highlight 7.1,_______________ has created part of the growth of the Apple iPhone due to the apps that are available to users.These apps increase the value of the iPhone and thus more people want to own an iPhone with apps.

Correct AnswerverifiedShow Answer

Inventing is the same thing as innovating.

Correct AnswerverifiedShow Answer

After long periods of competition and innovation,a(n) ____________ is required to "restart" an industry.

Correct AnswerverifiedB

The first stage of the industry life cycle is Introduction.What characteristics of this stage are attractive to the early adopters who are the major market for this stage?

Correct AnswerverifiedThe emphasis is on unique products and n...View AnswerShow Answer

__________ occur when transactions are not likely to take place because it is difficult to bring niche buyers and niche sellers together.

Correct AnswerverifiedC

Digital photography replacing film photography is an example of which type of innovation?

Correct AnswerverifiedShow Answer

A positive implication of the disruptive force of the Internet for a firm is:

Correct AnswerverifiedShow Answer

When a disruptive innovation is first introduced to the market,it is generally inferior in performance relative to what currently exists.

Correct AnswerverifiedShow Answer

Gillette introducing updated versions of its razor is an example of which type of innovation?

Correct AnswerverifiedShow Answer

Which of the following strategies do firms typically employ as competitive intensity increases and the market matures?

Correct AnswerverifiedShow Answer

Paradigm shifts lead to new technological industry standards.

Correct AnswerverifiedShow Answer

Disruptive innovations such as the $200 netbook computer do all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Understanding how the "80-20" rule can be applied to the disruptive force of the Internet allows a firm to do all of the following EXCEPT:

Correct AnswerverifiedShow Answer

In order for a firm to perform well in each stage of an industry life cycle,it should consistently use the same competencies.

Correct AnswerverifiedShow Answer

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A

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B

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The emphasis is on unique products and n...
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C

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