strategic mgt final pt 2
Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?
The weaker firms are forced out of the industry in this stage.
Which of the following statements accurately describes the distinction between the introduction and growth stages of the industry life cycle?
There is more strategic variety in the growth stage when compared to the introduction stage.
Which of the following describes the group of customers referred to as the early majority?
They enter the market during the growth stage.
Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?
Unlike incumbent firms, new entrants do not have formal organizational structures and processes.
Center Street Supply Co. has successfully achieved a competitive advantage in the detergent and cleaning solution industry as a differentiator. Which of the following scenarios would undermine Center Street's position?
Center Street's customers start to consider cleaning solutions a commodity.
Which of the following is a feature of the shakeout phase of the industry life cycle?
Firms begin to compete directly against each other.
When a firm pursues a(n) __________, it continues to support marketing efforts even if the demand for the product is declining.
Maintain strategy
Which of the following below is considered an advantage of using a platform business model?
Platforms unlock new sources of value creation and supply. or Platforms scale efficiently by implementing gatekeepers.
Which of the following describes an airline that is most likely stuck in the middle?
Skypath offers high-quality beverages and meals, plush airport lounges, only a few connections via domestic hubs, poor customer service, and low prices.
Which of the following is a feature of the growth stage of the industry life cycle?
The consumer demand increases.
Which of the following describes a firm pursuing a harvest strategy?
The firm reduces investments in product support and allocates only a minimum of human and other resources.
In a successful _________ strategy, the trade-offs between differentiation and low cost are reconciled.
blue ocean
The demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. Also, the current buyers of flip phones are mainly categorized under laggards. Which of the following stages of the industry life cycle is the flip phone industry in currently?
commercialization stage
Jill is the CEO of Notes Etc., a stationery manufacturer. She decides to open up a retail store to sell her products directly to consumers instead of just selling wholesale to retailers. To do this, Jill will need to engage in
forward vertical integration
Because Facebook receives almost all of its revenues from online advertising, we would conclude that it would be characterized as a(n)________ firm, which has the lowest levels of corporate diversification.
dominate business
To be successful and to survive the shakeout stage of the industry life cycle, a firm should
gain economies of scale
Which of the following lists the stages of the industry life cycle in the correct order?
introduction, growth, maturity, shakeout, and decline
Decisions relating to the range of products and services a firm will offer determine the firm's
level of diversification
Initech developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at the same time. The technology was leased to Accent Technologies, a consumer electronics company, for five years. Which of the following alternatives to integration does this best illustrate?
licensing
The primary goal of a firm pursuing a blue ocean strategy should be to
offer a differentiated product or service at a low cost.
When a blue ocean strategy goes bad, a firm has neither a clear differentiation nor a clear cost-leadership profile. This situation is referred to as
stuck in the middle
Sanjay, owner of WashTubs, a washing machine company, is looking for an alternative to vertical integration. He decides to manufacture some of his own machine parts while keeping a few key suppliers in his industry value chain. This is known as
taper integration
A company that engages in strategic outsourcing reduces its level of
vertical integration
Decisions relating to the question of what stages of the industry value chain to participate in determine a firm's
vertical integration
Massive Dynamic Computers sources the components for its laptops from various suppliers on the market. The firm pays $100 for processors, $35 for disk drives, $50 for screens, $10 for memory, and $40 for graphics and wireless internet cards. Massive Dynamic has determined that it would cost $200 per unit to produce all of the necessary components in its in-house manufacturing facility. In this scenario, Massive Dynamic should
vertically integrate