Chapter 5
The introduction to maturity phases of the industry life cycle curve is characteristically U-shaped.
False
With the onset of the maturity stage, the number of firms in most industries
Tends to decrease significantly
With the onset of the maturity stage, the number of firms in most industries:
Tends to decrease significantly
Start up firms in a new industry are also sometimes known as
de novo entrants
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"
The text claims that two factors are fundamental to the industry life cycle. One of these is:
The production and diffusion of knowledge
Over time, industry life cycles become longer and longer
False
Over time, industry life cycles become longer and longer.
False
An industry life cycle:
May never enter the decline phase in industries supplying basic essential products or services
Often, to succeed in the evolution from introduction to growth a firm:
Needs to be closely associated with the dominant design which emerges
A new industry life cycle begins when:
New knowledge manifests itself in the guise of a sufficiently radical product innovation
The different stages of the industry life cycles are characterised by:
The evolution of the industry growth rate over time
The typical cause of the decline phase in an industry is:
Any of the above
Dynamic capabilities:
Are the capacity to learn new capabilities
The key success factor in the Introduction phase of the industry is:
Effective product innovation i.e. getting new products launched and in front of customers
To survive going into the maturity phase of the industry life cycle a firm needs to:
Emphasize cost efficiency
Firms often imitate each other's strategies in order to gain legitimacy
False
The industry life cycle comprises 4 stages: introduction, growth, maturity, decline - so is indistinguishable from the product life cycle.
False
A "born global" company is one which:
Interacts across the world from the outset - especially regarding selling
The decline phase of the industry life cycle is caused by:
The emergence of a radically better substitute product, representing a new industry
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
Change in industries is driven chiefly by the forces of technology, market demand and economics.
True
Key feature of the decline phase of an industry life cycle typically include:
aggressive price competition and a declining number of competitors
Key features of the decline phase of the industry life cycle typically include:
aggressive price competition and a declining number of competitors
The building for developing new capabilities include:
all of the above
Scenario analysis is usually used to deal with:
All of the above
The building for developing new capabilities include:
All of the above
The basis of entering a new industry at the Introduction phase is:
Effective product innovation
A dominant design is:
An emergent de facto industry standard broad product format
A technical standard:
Answers b and c
The key success factor for leading firms in the Growth phase is:
Being able to scale up volume production and operations effectively and efficiently
As the industry life cycle progresses, overall strategies need to:
Change in most major aspects
A dominant design is one which is the most noticeable, or receives the most publicity.
False
A firm is said to be "ambidextrous" when it is able to exploit its existing technology successfully
False
Anderson and Tushman point out that all technological change is "competence destroying"
False
The industry life cycle consists of four stages: 1) Introductory, 2) Growth, 3) Plateau, and 4) Rejuvenation.
False
The key success factor for firms surviving in the Maturity phase is:
Maintaining cost efficiency that matches or exceeds that of competitors
Change in industries is driven chiefly by the forces of technology, market demand, and economics
True
Emphasis often shifts from product innovation to process innovation, once a dominant design emerges.
True
Established firms often find it difficult to adapt to new technologies even though they are well aware of these technologies
True
Massive and unpredictable changes occur in some industries, but less so in others.
True
The duration of the industry life cycle varies greatly from one industry to another
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
Two main factors drive industry evolution: demand growth and the production and diffusion of knowledge
True
Two main factors drive industry evolution: demand growth and the production and diffusion of knowledge.
True
The statement that organizational capabilities are path dependent means that:
a company's capabilities today are the result of its history
Firms entering a new industry who were already established in a related industry are sometimes known as:
de alio entrants
