Chapter 5

Scenario analysis is usually used to deal with:

All of the above

A technical standard:

Answers b and c

The typical cause of the decline phase in an industry is:

Any of the above

As the industry life cycle progresses, overall strategies need to:

Change in most major aspects

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

The industry life cycle consists of four stages: 1) Introductory, 2) Growth, 3) Plateau, and 4) Rejuvenation.

False

The introduction to maturity phases of the industry life cycle curve is characteristically U-shaped.

False

A "born global" company is one which:

Interacts across the world from the outset - especially regarding selling

The key success factor for firms surviving in the Maturity phase is:

Maintaining cost efficiency that matches or exceeds that of competitors

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

The text claims that two factors are fundamental to the industry life cycle. One of these is:

The production and diffusion of knowledge

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

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

Two main factors drive industry evolution: demand growth and the production and diffusion of knowledge.

True

Key features of the decline phase of the industry life cycle typically include:

aggressive price competition and a declining number of competitors

Firms entering a new industry who were already established in a related industry are sometimes known as:

de alio entrants