Assessment 3 Notes
Big firms fail to see disruptive innovations as a threat because: a. they primarily focus on the bottom line. b. they fail to listen to customer needs. c. they overestimate the impact of these innovations. d. they don't indulge in playing catch-up. e. they concentrate only on future financial performance.
A
The acronym VoIP is considered by many to be a disruptive innovation. It refers to: a. The technology used in internet telephony b. Cloud computing c. Semiconductor manufacturing technology d. DWDM
A
Which of the following is a way to recognize potentially disruptive innovations? a. Pay attention to slow-expensive advancements in technology. b. Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff. c. Become more consumer-focused. d. Indulge in bottom-line obsession. e. Increase conversation within same product groups.
B
Which of the following is true of disruptive technologies? a. The tech industry is the least fertile ground for disruptive technologies. b. Initially underperforming incumbents, over time their performance attributes improve to the point where they invade established markets. c. They come to market with a set of performance attributes that existing customers have demanded. d. Disruptive technologies and disruptive innovations are independent concepts. e. The term disruptive technologies is a simple one because few technologies are able to create market shocks and catalyze growth.
B
Yahoo!'s mobile team didn't have an executive champion to protect and nurture the team during the pioneering phase when financial results couldn't be realized. It couldn't show substantial results, so managers were reassigned. This is an example of: a. social engineering b. the Creosote Bush effect c. overspending on unproven projects d. the options portfolio of innovation
B
Banner ads are charged on a _____ basis.
CPM
Why do programmers prefer Facebook over MySpace for developing applications?
Developers retain all the revenue they generate on Facebook, while MySpace does revenue sharing.
Which of the following is true about bitcoin? a. In its current state, bitcoin can only process a fraction of transactions of traditional credit card companies. b. The grid-based, peer-produced verification network means bitcoin is as capable at processing transactions as even the largest credit card networks. c. Users transferring funds across border are likely to consider bitcoin beneficial because it has the potential to dramatically lower transaction fees. d. Despite the hype, there are no online retailers who current accept bitcoin, although this may change, soon. e. A and C are true. f. B and C are true. g. A, C, and D are true. h. B, C, and D are true.
E
_____ is the biggest photo-sharing site on the Web, taking in around three billion photos each month.
Which of the following is true about advertising and Facebook?
Facebook execs argue that people remember ads better and are more likely to make purchases when their friend sendorse products.
Which of the following statements is true about Facebook?
Facebook is the most visited site in the United States.
How are Facebook and MySpace different from each other?
Facebook users identify themselves using their real names, while MySpace is plagued by bogus profile.
1Incentives for U.S. consumer adoption of bitcoin are quite high.
False
ARM is one of the only firms, aside from Intel, that has scale allowing it to own and operate its own fabs.
False
Advertisers on Facebook are charged on a pay-per-click basis for banner ads.
False
An option is a right and an obligation to make an investment.
False
Cross-border bank transfers are not likely to adopt bitcoin since these functions are already electronic and highly automated.
False
Facebook enjoys significantly higher click-through rates than Google.
False
Facebook has overtaken all Internet rivals, except Google, in terms of revenue per user.
False
Facebook is publicly accessible, with search engines like Google and Bing being able to index most of Facebook content.
False
Facebook's key resources for competitive advantage are the sophisticated technological tools it provides to its users.
False
Facebook's phenomenal growth implies that it requires minimal infrastructure investment.
False
Facebook's rapid rise in popularity and profits has been fueled by the firm's decision to go public.
False
Firms that listen to existing customers and tailor offerings based on this input are far more likely to identify potentially disruptive technologies than those that experiment with products that existing customers do not demand
False
It has been said that the second phase of the Internet is about putting information online and giving people a way to find it.
False
Like most open-source efforts, bitcoin was created by a consortium of for-profit corporations hoping to fuel adoption of a beneficial new standard.
False
Most Facebook applications are focused on business and educational services.
False
Opt-in schemes guarantee the largest possible audience for a firm that wants to collect data to improve the user experience.
False
Social networking sites are particularly lucrative because they have a superior advertisement-based revenue-model.
False
The bulk of Facebook's revenue comes from revenue-sharing agreements with application developers.
False
The earlier a firm accepts venture capitalist funding, the more control the firm can expect to exert over its own functioning in the long run.
False
The walled garden expresses the connections between individuals and organizations.
False
Unlike Facebook, where much of developer-earned revenue comes from selling applications, the vast majority of Apple applications are free and ad-supported.
False
What can managers expect to learn from Facebook's feeds fiasco?
Firms should engage users on new initiatives and take steps to protect user privacy.
In terms of revenue-per-user, _____ tops the list of highest revenue-generating sites.
Which of the following statements holds true for the term cloud?
It refers to a collection of resources available for access over the Internet.
Which of the following statements holds true for the term network effects?
It refers to a situation when the value of a product or service increases as its number of users expands.
Which of the following statements holds true for the term localization?
It refers to adapting products and services for different languages and regional differences.
Microsoft paid $240 million for a 1.6 percent stake in Facebook in 2007. This investment is considered as rather rich, even by a firm of Microsoft's resources. What is one of the possible reasons for such an investment by Microsoft?
Microsoft's investment was done on the basis of Facebook's preferred shares
Which of the following factors suggests that Facebook can offer Google greater competition in the search engine market?
Much of Facebook's content being inaccessible to standard search engines
Which of the following factors has helped Facebook build up trust among its users?
Mutual approval of friend requests
How are News Feeds a source of value for users on Facebook?
News Feeds help users keep track of their contacts and friends' social lives.
Why did users initially protest against the introduction of News Feeds by Facebook?
News Feeds were perceived to be infringing on users' privacy.
What is Facebook's motivation for offering new features under an opt-out scheme?
Opt-out ensures larger audience, and helps enhance network effects and data advantages.
Information and news-oriented sites tend to do better than sites with user-generated content, in terms of advertising rates. Based on this information, which of the following sites would fare better than the rest?
Technology Review
What is the biggest problem faced by Facebook in the wake of the Beacon fiasco?
The partner firms are unlikely to sign up for Facebook's future experiments.
22. Third-party Web sites can choose to accept a user's Facebook credentials for allowing the user access to their content.
True
A lack of financial disclosure rules complicates the process of valuation of private firms.
True
Disruptive innovations don't need to perform better than incumbents; they simply need to perform well enough to appeal to their customers (and often do so at a lower price).
True
Facebook allows application developers to charge for their wares, offer them for free, or even run ads.
True
Facebook feeds foster the viral spread of information and activity.
True
Facebook is mostly powered by open source software, such as MySQL and Memcache.
True
Facebook is now the biggest photo-sharing site on the Web, ahead of Picasa, Flickr, and Photobucket.
True
Facebook was one of the first social networking sites where users actually identified themselves using their real names.
True
Facebook's Beacon effort was a failure because it was "opt out" instead of "opt in."
True
Facebook's increasing dominance has given rise to the fear that if increasingly large parts of the Web reside inside a single (and for the most part closed) service, innovation, competition, and exchange may suffer.
True
Firms may want to use ARM chips because they draw less power than Intel chips.
True
Firms might not want to use ARM chips because they are incompatible with Intel chips.
True
Firms spend more advertising online than they do on radio and magazine ads.
True
In terms of generating ad revenue, information and news-oriented sites do much better than social networking sites.
True
Intuit has avoided disruption in the shift away from packaged software by developing products that leverage cloud computing, some of which are initially provided for free.
True
Low-margin retailers are interested in bitcoin because it may allow the elimination of fees associated with credit card transactions.
True
Many disruptive firms were started by former employees of the disrupted giants.
True
Microsoft's purchase of a 1.6 percent stake in Facebook has pegged Facebook's value at $15 billion.
True
Profit margins for disruptive innovations are usually worse than those for incumbent technologies.
True
Users tend to be more task and result-oriented when using Google as compared to Facebook.
True
Which of the following is a major problem faced by Facebook as it embraces a more open approach?
Weakened strategic assets
_____ is considered the most persuasive and valuable method of promoting products and services.
Word of mouth
Until recently, Facebook founder, Mark Zuckerberg, was virtually guaranteed to remain in control of the firm, regardless of what investors said, because:
Zuckerberg controlled three of the five seats on the board of directors.
The term content adjacency refers to:
a situation where ads appear alongside text an advertiser would like to avoid.
The bulk of Facebook's revenue comes from:
advertising
Users of Google and other search engines are said to be on a hunt because they:
are there to collect information to drive a specific action.
Which of the following phrases describes a company whose revenues cover its operating costs?
cash-flow positive
Developers creating applications create _____ that have the potential to add value to Facebook beyond what the firm itself provides to its users.
complementary benefits
The second phase of the Web is about:
connecting people with one another.
Which of the following factors prevents social networking sites from monetizing advertising effectively?
content adjacency
Brand advertisers largely consider user-generated content as low-quality, brand-unsafe inventory for running advertisements. This can be attributed to:
content adjacency.
Systems distributed throughout the Internet to help improve the delivery speeds of Web pages and other media, typically by spreading access across multiple sites located closer to users are known as:
content delivery networks
CPM refers to:
cost per thousand impressions.
Which of the following statements holds true for the term free rider problem?
d. It refers to a situation when others take advantage of a user or service without providing any sort of reciprocal benefit.
_____ refer to a promotion technique popular with social media that attempts to get consumers to interact with an ad, and then shares that action with friends.
engagement ads
One of the benefits of Facebook engaging in intersite sharing and collaboration efforts is that it:
enhances network effects.
When a firm issues an IPO, it is said to have:
gone public
With the Beacon effort, Facebook hoped to:
grab consumer activity at points of purchase to post to a user's profile via News Feeds.
With just a few lines of HTML code, any developer can add a Facebook "Like" button to their site and take advantage of the social network's power of viral distribution. However, some sites have renamed "Like" to "Recommend," because:
it would be inappropriate to "Like" a story about a disaster or a tragedy.
Facebook's valuation at $15 billion should be taken with a pinch of salt because:
lack of financial disclosure makes it tough to evaluate private firms.
For years, _____ has/have been the only major media category that has seen an increase in spending.
online advertising
Software that is free and where anyone can look at and potentially modify the code is referred to as ____ software.
open source
"Users want some semblance of control over their personal data, even if they likely cannot be bothered to manage it." This is often known as the:
paradox of privacy.
Most Facebook applications are focused on:
recreation
Facebook was conceived as a place for:
reinforcing users' preexisting contacts.
The measures taken by Facebook to counter the threat of sexual predation of minors on its networks included:
reviewing attempts by under-age users to change their date of birth.
A trader sells shares he does not own with an obligation of later repayment and in the hope that the price of sold shares will fall. He then repays share debt with shares purchased at a lower price and pockets the spread between initial share price and repayment price. This attempt to profit from a falling stock price is known as:
short selling
The dark Web refers to:
sites that cannot be indexed by Google and other search engines.
One of Facebook's key resources for competitive advantage includes:
switching costs
The term social graph refers to:
the global mapping of users, organizations, and how they are connected.
Facebook has offered a system where Web site operators can choose to accept a user's Facebook credentials for logging in. Web site operators appreciate this feature because:
users are keen on accessing content on these Web sites without signing up.
Investor groups that provide funding in exchange for a stake in the firm, and often, a degree of managerial control, are called
venture capitalists
_____ is a term that refers to a closed network or single set of services controlled by one dominant firm.
walled garden
