Chap 7 notes

Introductory phase of the industry life cycle (2.5%) a. technology enthusiasts b. early adopters c. early majority d. late majority e. laggards

a

large number f firms in US textile industry due to low-cost foreign competition= a. exit b. harvest c. maintain d. consolidate

a

new market and existing technologies a. architectural innovation b. radical innovation c. incremental innovation d. disruptive innovation

a

a firms ability to understand external technology developments, evaluate them and integrate them into current products or create new ones=

absorptive capacity

a new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets= what type of innovation

architectural

customers entering the market in the growth stage, roughly 13.5% of the market potential a. technology enthusiasts b. early adopters c. early majority d. late majority e. laggards

b

new market and new technologies a. architectural innovation b. radical innovation c. incremental innovation d. disruptive innovation

b

reduce investments, minimum of resources a. exit b. harvest c. maintain d. consolidate

b

continue to support marketing efforts despite demand a. exit b. harvest c. maintain d. consolidate

c

customers coming into the market during the shakeout stage, about 34% a. technology enthusiasts b. early adopters c. early majority d. late majority e. laggards

c

existing market and existing technologies a. architectural innovation b. radical innovation c. incremental innovation d. disruptive innovation

c

new products discovered, developed and commercialized internally= what type of innovation

closed

conceptual model that shows how each stage of the industry life cycle is dominated by a different customer group

crossing the chasm framework

buying rivals- may approach monopoly power a. exit b. harvest c. maintain d. consolidate

d

customer entering the market in the maturity stage, making up approximately 34% of the total a. technology enthusiasts b. early adopters c. early majority d. late majority e. laggards

d

new technologies and existing market a. architectural innovation b. radical innovation c. incremental innovation d. disruptive innovation

d

in this industry life cycle stage, innovation efforts both product and process dimensions cease

decline

in this industry life cycle stage, the size of the market contracts further as demand falls, often rapidly

decline

an innovation that leverages new technologies to attack existing markets from the bottom up

disruptive

entering during the declining phase about 16% a. technology enthusiasts b. early adopters c. early majority d. late majority e. laggards

e

established companies are focused on defending their position- this descries what term

economic invectives

describes the process by which change agents undertake economic risk to innovate

entrepreneurship

during the decline state, managers have what four strategic option

exist, harvest, maintain, consolidate

____ _____ advantages are competitive benefits that accrue to the successful innovator

first mover

in what industry life cycle stage are product and process innovations made

growth

in this industry life cycle competitive rivalry is muted and standard emerges

growth stage

this is often presented in terms of abstract concepts or as findings derived from basic reproach

idea

what does the innovation process begin with

idea

what are the 4 steps of the innovation process

idea, invention, innovation, imitation

an innovation that squarely builds on an established knowledge base and steadily improves an existing product or service

incremental

the commercialization of any new product or process, or the modification and recombination of existing ones

innovation

the successful introduction of a new product, process, or business model

innovation

this can be a powerful strategic weapon to gain and sustain competitive advantage

innovation

established companies are part of an ecosystem: suppliers, buyers and complementary- this describes what term

innovation ecosystem

the strategic objective in this industry life cycle stage is to achieve market acceptance and seed future growth

introduction stage

this describes the transformation of an idea into a new product or process, or the modification and recombination of existing ones

invention

a conceptual model to categorize innovations along the market (existing/new) and technology (existing/new) dimensions

markets and technology framework

in this industry life cycle stage industry structure morphs into an oligopoly with only few large firms

maturity

in this industry life cycle stage level of product innovation sinks to its minimum

maturity

in this industry life cycle stage process innovation reaches its maximum as firms attempt to lower costs

maturity

in this industry life cycle stage remaining firms tend to enjoy economies of scale

maturity

the positive effect (externality) that one user of a product or service has on the value of that product for other users

network effects

a framework for R&D that proposes permeable firm boundaries to allow a firm to benefit not only from internal ideas and inventions but also from external ones

open

ideas and innovation can originate from external sources like customers, suppliers, universities, start ups and competitors= what type of innovation

open

established companies rely on formalized business processes and structures- this describes what term

organizational inertia

this is a form of intellectual property

patent

new ways to produce existing products or deliver existing services

process innovation

new or recombined knowledge embedded in new products

product innovation

an innovation that draws on novel methods or materials, is derived from an entirely different knowledge base or from a recombination of existing knowledge bases with a new stream of knowledge

radical

an innovation that was developed for emerging economies before being introduced in developed economies, Sometimes called frugal innovation

reverse

in this industry life cycle stage consolidations and acquisitions occur, weaker firms exist through bankruptcy

shakeout

in this industry life cycle stage few may implement a blue ocean strategy combining differentiation and low cost

shakeout

in this industry life cycle stage firms begin to cut prices and offer more services

shakeout

in this industry life cycle stage winners often stake out a strong position as cost leaders

shakeout

in this industry life cycle stage, competitive intensity increases and weaker firms are forced out

shakeout

industries tend to follow a predictable industry life cycle: as an industry evolves over time, we can identify five distinct states: introduction, growth, _____. maturity and decline

shakeout

this describes the pursuit of social goals while creating profitable businesses

social entrepreneurship

an agreed upon solution about a common set of engineering features and design choices

standard

this describes the pursuit of innovation using tools and concepts from strategic management

strategic entrepreneurship

valuable proprietary information that is not in the public domain and where the firm makes every effort to maintain its secrecy

trade secrets

markets where the market leader captures almost all of the market share and is able to extract a significant amount of the value created

winner takes all markets