Chapter 5
A dominant design is:
An emergent de facto industry standard broad product format
A technical standard:
Answers b and c
Dynamic capabilities:
Are the capacity to learn new capabilities
The basis of entering a new industry at the Introduction phase is:
Effective product innovation
A dominant design is one which is the most noticeable, or receives the most publicity.
False
Anderson and Tushman point out that all technological change is "competence destroying"
False
Firms often imitate each other's strategies in order to gain legitimacy
False
Over time, industry life cycles become longer and longer.
False
The industry life cycle comprises 4 stages: introduction, growth, maturity, decline - so is indistinguishable from the product life cycle.
False
The industry life cycle consists of four stages: 1) Introductory, 2) Growth, 3) Plateau, and 4) Rejuvenation.
False
A "born global" company is one which:
Interacts across the world from the outset - especially regarding selling
Often, to succeed in the evolution from introduction to growth a firm:
Needs to be closely associated with the dominant design which emerges
With the onset of the maturity stage, the number of firms in most industries:
Tends to decrease significantly
The determining factors of how calamitous the decline phase turns out to be are:
The way capacity is dismantled as demand declines, and how dramatic is the decline in demand
A dominant design defines the look, functionality and production method for a product and becomes accepted by the industry as a whole.
True
Established firms often find it difficult to adapt to new technologies even though they are well aware of these technologies
True
The emergence of a dominant product design tends to coincide with a shift towards process innovation
True
The emphasis of organizational development is upon individual organizational units and bottom-up change
True
The statement that organizational capabilities are path dependent means that:
a company's capabilities today are the result of its history
A succession of management gurus including Tom Peters to Gary Hamel have argued that the key to achieving competitive advantage is:
initiating change and achieving internal "revolution"