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