Question 1

A factor favoring the success of disruptive innovation is that

Accepted Answer

A)   incumbent firms are slow to change.
B)   new entrants have highly formal organizational structures and processes.
C)   the low end of the market is highly guarded.
D)   incumbent firms focus on radical innovation rather than incremental innovation.E) A) and B)
F) B) and D)

Question 2

What happens during the shakeout stage of the industry life cycle?

Accepted Answer

As the industry moves into the shakeout ...

Question 3

As a research scholar, Denise had built a helicam as part of her project. The helicam could capture aerial images. Realizing the potential use of this product in movie production and military and rescue operations, she started a new venture where she could customize these helicams to fit the specific needs of the buyers and sell them. Denise can be best described as a(n)

Accepted Answer

A)   entrepreneur.
B)   category captain.
C)   franchisor.
D)   early adopter.E) A) and B)
F) A) and C)

Question 4

Which of the following businesses is most susceptible to negative network effects?

Accepted Answer

A)   Moonglow Shoes produces a line of lightweight running shoes that are endorsed by an Olympic gold medalist.
B)   Clover Technologies produces computer processing chips and sells them to a variety of manufacturers for use in smartphones and other devices.
C)   Green Tools manufactures solar powered gardening implements and sells them online.
D)   Pics Match is a social media platform where users upload photos to the site and are matched with other users who have taken similar photos.E) A) and B)
F) All of the above

Question 5

Which of the following is a feature of the maturity stage of the industry life cycle?

Accepted Answer

A)   The competitive intensity within the industry is at its peak.
B)   The market reaches its maximum size.
C)   The industry structure is more monopolistically competitive.
D)   The focus on product innovation is higher than that on process innovation.E) A) and B)
F) A) and C)

Question 6

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

Accepted Answer

A)   Netflix moved from content development to upgrading its data analytics to provide faster online streaming.
B)   Netflix applied big data analytics to its user preferences to provide highly personalized viewing recommendations.
C)   Netflix moved from online streaming to online DVD rentals via the Internet.
D)   Netflix applied first mover advantages to lock up talent needed to produce original content for DVD rentals and online streaming.E) All of the above
F) None of the above

Question 7

In the introductory stage, the level of product innovation is at a maximum. Elaborate.

Accepted Answer

In the introductory stage, the level of ...

Question 8

In which of the following stages of the industry life cycle is a standard first established?

Accepted Answer

A)   maturity stage
B)   growth stage
C)   shakeout stage
D)   introduction stageE) All of the above
F) C) and D)

Question 9

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?

Accepted Answer

A)   a few start-up publishers
B)   many small to midsized publishers
C)   a few large publishers
D)   one large publisherE) C) and D)
F) A) and B)

Question 10

Which of the conditions prevail when an industry is at the end of its life cycle?

Accepted Answer

A)   The level of process innovation reaches its maximum as firms attempt to lower cost.
B)   The industry structure is perfectly competitive with a large number of buyers and sellers.
C)   The strategic objectives of businesses will involve gaining market acceptance.
D)   The market reaches its maximum size at this stage.E) A) and B)
F) None of the above

Question 11

Briefly discuss the strategic implications of the crossing-the-chasm framework.

Accepted Answer

Based on empirical observations, Geoffre...

Question 12

Why do firms have more strategic variety in the growth stage of the industry life cycle?

Accepted Answer

Competitive rivalry is muted in the grow...

Question 13

Social entrepreneurs forego the pursuit of profits to achieve social and environmental goals.

Accepted Answer

A) True 
 B)False

Question 14

In the decline stage, which of the following strategies involves a reduction of investments in product support?

Accepted Answer

A)   exit strategy
B)   harvest strategy
C)   maintain strategy
D)   consolidate strategyE) B) and C)
F) C) and D)

Question 15

As a start-up company, DigiWrist entered the low end of the highly competitive smartwatch industry with its low-cost smartwatches. Initially, the company was able to sell its inferior technology due to its low prices. Over the years, however, its rate of technology improvements increased above the industry standards. This helped the company to create a strong strategic position for its smartwatches in the high-end segment and claim a premium price. Which of the following types of innovation does this scenario best illustrate?

Accepted Answer

A)   radical innovation
B)   incremental innovation
C)   architectural innovation
D)   disruptive innovationE) A) and B)
F) A) and C)

Question 16

Incumbent firms favor incremental innovation over radical innovation because

Accepted Answer

A)   their business decisions are independent of the other parties in their innovation ecosystem.
B)   radical innovation will disturb the existing power distribution within the firms.
C)   incumbent firms do not have formal organizational structures and processes like the way new entrants do.
D)   incremental innovations help firms sustain a permanent competitive advantage, whereas radical innovations only help gain a temporary advantage.E) A) and D)
F) B) and C)

Question 17

Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. Three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. What should Lillypad's managers prepare for next?

Accepted Answer

A)   increased competition from imitators
B)   a prolonged period of uncontested success
C)   a sharp decline in demand for the product
D)   a difficult struggle to move from invention to innovationE) B) and C)
F) All of the above

Question 18

Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)

Accepted Answer

A)   regressive innovation.
B)   radical innovation.
C)   architectural innovation.
D)   disruptive innovation.E) A) and B)
F) All of the above

Question 19

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Accepted Answer

A)   The barriers to entry increase during this stage.
B)   The firms in the industry yield the highest profits during this phase.
C)   Rivalry among competitors decreases in this stage.
D)   The weaker firms are forced out of the industry in this stage.E) None of the above
F) All of the above

Question 20

Briefly discuss the steps in the innovation process.

Accepted Answer

Innovation describes the discovery and d...

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

Briefly discuss the steps in the innovation process.

Correct Answer
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Innovation describes the discovery and d...
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A factor favoring the success of disruptive innovation is that

Correct Answer
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Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)

Correct Answer
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Which of the following businesses is most susceptible to negative network effects?

Correct Answer
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In the introductory stage, the level of product innovation is at a maximum. Elaborate.

Correct Answer
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In the introductory stage, the level of ...
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In which of the following stages of the industry life cycle is a standard first established?

Correct Answer
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Incumbent firms favor incremental innovation over radical innovation because

Correct Answer
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Briefly discuss the strategic implications of the crossing-the-chasm framework.

Correct Answer
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Based on empirical observations, Geoffre...
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Which of the conditions prevail when an industry is at the end of its life cycle?

Correct Answer
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Correct Answer
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Social entrepreneurs forego the pursuit of profits to achieve social and environmental goals.

Correct Answer
verified

In the decline stage, which of the following strategies involves a reduction of investments in product support?

Correct Answer
verified

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?

Correct Answer
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Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

Correct Answer
verified

Correct Answer
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Why do firms have more strategic variety in the growth stage of the industry life cycle?

Correct Answer
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Competitive rivalry is muted in the grow...
View Answer

Which of the following is a feature of the maturity stage of the industry life cycle?

Correct Answer
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What happens during the shakeout stage of the industry life cycle?

Correct Answer
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As the industry moves into the shakeout ...
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Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Correct Answer
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Correct Answer
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Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

Briefly discuss the steps in the innovation process.

Correct AnswerverifiedInnovation describes the discovery and d...View AnswerShow Answer

A factor favoring the success of disruptive innovation is that

Correct AnswerverifiedShow Answer

Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)

Correct AnswerverifiedShow Answer

Which of the following businesses is most susceptible to negative network effects?

Correct AnswerverifiedShow Answer

In the introductory stage, the level of product innovation is at a maximum. Elaborate.

Correct AnswerverifiedIn the introductory stage, the level of ...View AnswerShow Answer

In which of the following stages of the industry life cycle is a standard first established?

Correct AnswerverifiedShow Answer

Incumbent firms favor incremental innovation over radical innovation because

Correct AnswerverifiedShow Answer

Briefly discuss the strategic implications of the crossing-the-chasm framework.

Correct AnswerverifiedBased on empirical observations, Geoffre...View AnswerShow Answer

Which of the conditions prevail when an industry is at the end of its life cycle?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Social entrepreneurs forego the pursuit of profits to achieve social and environmental goals.

Correct AnswerverifiedShow Answer

In the decline stage, which of the following strategies involves a reduction of investments in product support?

Correct AnswerverifiedShow Answer

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?

Correct AnswerverifiedShow Answer

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why do firms have more strategic variety in the growth stage of the industry life cycle?

Correct AnswerverifiedCompetitive rivalry is muted in the grow...View AnswerShow Answer

Which of the following is a feature of the maturity stage of the industry life cycle?

Correct AnswerverifiedShow Answer

What happens during the shakeout stage of the industry life cycle?

Correct AnswerverifiedAs the industry moves into the shakeout ...View AnswerShow Answer

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Innovation describes the discovery and d...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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In the introductory stage, the level of ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Based on empirical observations, Geoffre...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Competitive rivalry is muted in the grow...
View Answer

Correct Answer
verified

Correct Answer
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As the industry moves into the shakeout ...
View Answer

Correct Answer
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Correct Answer
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