Question 1

Process innovation is more important than product innovation during the growth stage because:

Accepted Answer

A)   companies produce very few products during the growth stage, often just prototypes or beta versions.
B)   technological and commercial uncertainties about a new product still exist during this stage.
C)   it is more crucial to adopt the integration strategy during this stage.
D)   a standard, in terms of engineering features and design choices, has been set across the industry.E) B) and C)
F) A) and B)

Question 2

An intrapreneur is described as a person who:

Accepted Answer

A)   restricts changes within an organization.
B)   innovates within existing companies.
C)   introduces new products or services by starting his or her own ventures.
D)   invests funds in the ideas of another person in the same organization.E) A) and B)
F) None of the above

Question 3

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

Accepted Answer

As the industry moves into the shakeout ...

Question 4

Differentiate incremental innovation from radical innovation.

Accepted Answer

An incremental innovation squarely build...

Question 5

Which of the following statements accurately describes social entrepreneurs?

Accepted Answer

A)   Social entrepreneurs are individuals who invest in start-up businesses in order to earn huge returns.
B)   Social entrepreneurs are individuals who rely primarily on social networking sites to generate revenues.
C)   Social entrepreneurs are employees within organizations who are responsible for carrying out lean production.
D)   Social entrepreneurs are those who consider financial, ecological, and social metrics to evaluate their firm's performance.E) A) and B)
F) B) and C)

Question 6

Entrepreneurs are the agents who introduce change into the competitive system.Elaborate.

Accepted Answer

Entrepreneurs are the agents who introdu...

Question 7

Which of the following statements is true of a disruptive innovation?

Accepted Answer

A)   It begins as a low-cost solution to a new problem.
B)   It initially performs better than the existing technology.
C)   It involves leveraging existing technologies in new markets.
D)   It invades the market from the bottom up, by first capturing the low end.E) B) and C)
F) A) and B)

Question 8

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

Accepted Answer

A)   The first mover will be able to achieve a less steeper learning curve.
B)   The first mover will be able to reduce the switching costs.
C)   The first mover will not have to patent its products or technology.
D)   The first mover will be able to reduce costs through economies of scale.E) None of the above
F) C) and D)

Question 9

Elaborate on the closed-innovation approach.

Accepted Answer

During the twentieth century, the closed...

Question 10

Globe Source Inc.is a consumer electronics company that follows an open innovation model.Which of the following can be concluded about this firm?

Accepted Answer

A)   The firm will suffer from the not-invented-here syndrome.
B)   The firm is less likely to commercialize researches from other firms.
C)   The firm will buy others' intellectual property whenever it advances its own business model.
D)   The firm will equate R&D with a high likelihood of benefitting from first-mover advantages.E) A) and B)
F) A) and C)

Question 11

Bringing the early majority on board is the key to catching the growth wave of the industry life cycle.Provide reasons to agree or disagree with this statement.

Accepted Answer

The early majority makes up almost one t...

Question 12

Which of the following statements accurately brings out the difference between closed innovation and open innovation?

Accepted Answer

A)   Firms following the open innovation model are much more likely to be prone to the not-invented-here syndrome than firms pursuing a closed innovation model.
B)   While open innovation focuses on building an effective business model to commercialize R&D, closed innovation focuses on being first to market.
C)   Firms following the open innovation model are more protective about their intellectual property than firms pursuing a closed innovation model.
D)   While open innovation means introducing new technologies to new markets, closed innovation refers to introducing new technologies to existing markets.E) B) and D)
F) A) and C)

Question 13

How has Apple been able to sustain its competitive advantage in the smartphone industry?

Accepted Answer

A)   By reducing its network effects
B)   By targeting its new products and services toward laggards
C)   By driving the price for the end user to zero
D)   By regularly introducing incremental improvements in its productsE) A) and B)
F) A) and C)

Question 14

What opportunities does online digitalization provide to businesses?

Accepted Answer

To harness the power of the Internet, fi...

Question 15

While the industry for e-book readers is in its growth stage, the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?

Accepted Answer

A)   While firms in the e-book reader industry will focus on pursuing a harvest strategy, firms in the landline telephone industry will focus on product innovations.
B)   The e-book reader industry is at a more advanced stage than the landline industry of the industry life cycle.
C)   While firms in the e-book reader industry will attract customers categorized under late majority, firms in the landline telephone industry will attract the early majority customers.
D)   The number of competitors in the e-book reader industry will be larger when compared to the landline telephone industry.E) A) and C)
F) None of the above

Question 16

List the five distinct stages of the industry life cycle.

Accepted Answer

As an industry evolves over ti...

Question 17

Which of the following statements is true of firms pursuing a closed innovation?

Accepted Answer

A)   Firms following the closed innovation model are less likely to be prone to the not-invented-here syndrome.
B)   Firms in the closed innovation model are extremely protective of their intellectual property.
C)   Firms in the closed innovation model focus on building a more effective business model to commercialize R&D, rather than focusing on being first to market.
D)   Firms following the closed innovation model will find activities such as spin-out ventures or strategic alliances crucial to commercialize their internally developed R&D.E) B) and C)
F) A) and B)

Question 18

A few efficient and strong firms in the laptop industry have remained and emerged successful from the shakeout stage.Which of the following stages of the industry life cycle will they move to next?

Accepted Answer

A)   Growth stage
B)   Introduction stage
C)   Maturity stage
D)   Decline stageE) A) and D)
F) All of the above

Question 19

How is process innovation different from product innovation?

Accepted Answer

Product innovations, as the name suggest...

Question 20

Discuss the drawbacks of the industry life cycle.

Accepted Answer

Although the industry life cycle is a us...

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

How has Apple been able to sustain its competitive advantage in the smartphone industry?

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Process innovation is more important than product innovation during the growth stage because:

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Discuss the drawbacks of the industry life cycle.

Correct AnswerverifiedAlthough the industry life cycle is a us...View AnswerShow Answer

Which of the following statements accurately brings out the difference between closed innovation and open innovation?

Correct AnswerverifiedShow Answer

Differentiate incremental innovation from radical innovation.

Correct AnswerverifiedAn incremental innovation squarely build...View AnswerShow Answer

Elaborate on the closed-innovation approach.

Correct AnswerverifiedDuring the twentieth century, the closed...View AnswerShow Answer

List the five distinct stages of the industry life cycle.

Correct AnswerverifiedAs an industry evolves over ti...View AnswerShow Answer

Entrepreneurs are the agents who introduce change into the competitive system.Elaborate.

Correct AnswerverifiedEntrepreneurs are the agents who introdu...View AnswerShow Answer

Which of the following statements is true of firms pursuing a closed innovation?

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Which of the following statements is true of a disruptive innovation?

Correct AnswerverifiedShow Answer

Bringing the early majority on board is the key to catching the growth wave of the industry life cycle.Provide reasons to agree or disagree with this statement.

Correct AnswerverifiedThe early majority makes up almost one t...View AnswerShow Answer

While the industry for e-book readers is in its growth stage, the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?

Correct AnswerverifiedShow Answer

What opportunities does online digitalization provide to businesses?

Correct AnswerverifiedTo harness the power of the Internet, fi...View AnswerShow Answer

A few efficient and strong firms in the laptop industry have remained and emerged successful from the shakeout stage.Which of the following stages of the industry life cycle will they move to next?

Correct AnswerverifiedShow Answer

An intrapreneur is described as a person who:

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How is process innovation different from product innovation?

Correct AnswerverifiedProduct innovations, as the name suggest...View AnswerShow Answer

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

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

Globe Source Inc.is a consumer electronics company that follows an open innovation model.Which of the following can be concluded about this firm?

Correct AnswerverifiedShow Answer

Which of the following statements accurately describes social entrepreneurs?

Correct AnswerverifiedShow Answer

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Although the industry life cycle is a us...
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Correct Answer
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An incremental innovation squarely build...
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During the twentieth century, the closed...
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As an industry evolves over ti...
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Entrepreneurs are the agents who introdu...
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Correct Answer
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Correct Answer
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The early majority makes up almost one t...
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Correct Answer
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To harness the power of the Internet, fi...
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Correct Answer
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Correct Answer
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Correct Answer
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Product innovations, as the name suggest...
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Correct Answer
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As the industry moves into the shakeout ...
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Correct Answer
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Correct Answer
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