Week 3: Strategy dynamics
Dynamic capabilities
Are the capacity to learn new capabilities
The value created by an innovation is:
Distributed amongst the various players involved in no certain way
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
To determine the amount of the value created by an innovation that can be appropriated by the innovator, four factors are critical:
Property rights, the tacitness and complexity of the technology, lead-time, and complementary resources
The fact that some firms such as BASF, Exxon, and General Electric have been leaders in their industries for almost a century, indicates that:
Some firms have built the capability to adapt themselves to change in their environment time after time
With the onset (start) of the maturity stage, the number of firms in most industries:
Tends to decrease significantly
The value of scenario analysis lies in :
The process of managers being involved in the analysis
Lead-time in the context of innovation refers to:
The time it takes a follower to catch up
The only way to cope with true uncertainty is:
To be flexible enough to quickly react to the unexpected
Disruptive technologies are:
Innovations that threaten existing industry leaders and generally offer potentially superior performance at lower price than existing products
Which of the following is not a characteristic of Hypercompetitive industries, according to D'Aveni:
Sustained competitive advantage
Inventions are:
The creation of new products or processes, often based on existing technology and know-how
Network externalities exist when:
The value of a product for a customer depends significantly on the number of other users of the same product
Standards are important in an industry because:
They underpin interoperability (cross usage e.g. a design of a lamp bulb must be compatible with most of the lamps) (where relevant) and facilitate industry growth