Strategic Management - Chapter 7

If a pharmaceutical company develops a first-of-its-kind vaccine to prevent HIV/AIDS and thus creates a whole new market for the product (non-infected civilians), it would be a(n) A) architectural innovation. B) incremental innovation. C) disruptive innovation. D) radical innovation.

radical innovation.

Cantaloupe Technologies follows a business model in which the performance of the company is not only based on how much profits were generated, but also on how the community in general benefited from its operations. Thus, the company under its "Plant a Life" campaign promises to plant a tree with every customer purchase. Which of the following terms best describes the performance valuation model of Cantaloupe Technologies? A) corporate intrapreneurship B) social entrepreneurship C) crowdsourcing D) offshoring

social entrepreneurship

According to the crossing-the-chasm framework, a firm's transition between the different parts of the industry life cycle is difficult because A) there are frequent changes in the supply and demand sides of the market throughout the industry life cycle. B) there is a big gulf separating the early adopters from customer segments that make up the mass market. C) the number and size of competitors change throughout the industry life cycle. D) the firm tends to follow a predictable industry life cycle.

there is a big gulf separating the early adopters from customer segments that make up the mass market.

How are the early majority and late majority different in their attitudes toward technology? A) The early majority is very concerned with what new technology can do for them; the late majority is not. B) The early majority is concerned that many new technologies will fade away; the late majority is not. C) The early majority is strongly influenced by the endorsements of others; the late majority is not. D) The early majority is confident in their ability to master the new technology; the late majority is not.

The early majority is confident in their ability to master the new technology; the late majority is not.

While the industry for Ultra-High Definition televisions is in the introduction stage, the industry for LCD televisions is in the maturity stage. What does this imply? A) The Ultra-High Definition television industry will focus on process innovation, whereas the LCD television industry will focus on product innovation. B) The Ultra-High Definition television industry will focus on pursuing an integration strategy, while the LCD television industry will focus on pursuing a differentiation strategy. C) The market for LCD televisions has reached its maximum size, whereas the market for Ultra-High Definition televisions is still small in size. D) The LCD television industry is likely to focus on achieving market acceptance, while the Ultra-High Definition television industry is likely to focus on the harvest strategy.

The market for LCD televisions has reached its maximum size, whereas the market for Ultra-High Definition televisions is still small in size.

In developed countries, the industry for flash drives is in the maturity stage, and the industry for floppy disks is in the decline stage. What does this imply? A) While the flash drive industry has reached its maximum market size, the market size for floppy disks is small and contracting. B) The industry structure for floppy disks is that of perfect competition, whereas the industry structure for flash drives is monopolistically competitive. C) While the buyers of floppy disks can be categorized under early majority, the customers of flash drives can be categorized under late majority. D) The number of new entrants in the floppy disks industry will be more when compared to the industry for flash drives.

While the flash drive industry has reached its maximum market size, the market size for floppy disks is small and contracting.

While the industry for tablet computers is in the growth stage, the laptop industry is in its shakeout stage. What does this imply? A) The number of competitors entering the laptop industry will be more than those entering the tablet computers industry. B) The tablet industry is ahead of the laptop industry in the industry life cycle. C) While the market demand for tablets will be high, the demand for laptops will be limited. D) While competition for the tablet industry is primarily based on price, it is not so for the laptop industry.

While the market demand for tablets will be high, the demand for laptops will be limited.

Bela is a marketing and sales employee at Hopscotch Foods Inc. She has invented a new way to process and pack the company's food products that would avoid the usage of chemical preservatives. Which of the following terms best describes Bela? A) a franchised dealer B) a category captain C) an intrapreneur D) a venture capitalist

an intrapreneur

Japanese carmakers first introduced small fuel-efficient cars and then leveraged their low-cost and high-quality advantages into high-end luxury segments, dominated by brands such as Lexus, Infiniti, and Acura. This initiative best illustrates a(n) A) radical innovation. B) incremental innovation. C) progressive innovation. D) disruptive innovation.

disruptive innovation.

Julius bought his laptop and smartphone when these products had just entered their respective growth stages. More than the technological sophistication of these products, it was the idea that these products would allow him to multitask and work when traveling that drove him to make his purchase decision. Which of the following customer segments does Julius best represent? A) late majority B) laggards C) early adopters D) technology enthusiasts

early adopters