MAN4720 Ch 7 Questions and Quiz
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) - disruptive innovation - incremental innovation - radical innovation - progressive innovation
Disruptive innovation
Select all that apply What can incumbent firms do to counter disruptive innovations? (Check all that apply.) - protect the low end of the market - focus on the high end of the market - disrupt themselves - listen closely to their most important customers - continue to innovate
- protect the low end of the market - disrupt themselves - continue to innovate
Which of the following statements is true of the growth stage in the industry life cycle? - The objective of firms during this stage is to pursue a harvest strategy - The prices begin to fall during this stage when compared to the introduction stage - The type of buyers during this stage consists of the late majority - The basis of competition tends to move away from process innovations toward product innovations
The prices begin to fall during this stage when compared to the introduction stage
Redwood Corp. 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 Redwood Corp.? - crowdsourcing - social entrepreneurship - offshoring - corporate intrapreneurship
Social entrepreneurship
Platforms unlock new sources of _________________ and supply. - outperform - bankrupt - gatekeepers - competition - producers - leveraging - developing - management - value creation - demand
Value creation
Select all that apply What are the most important core competencies for competitive advantage in the growth stage? (Check all that apply.) - marketing capabilities - service - manufacturing capabilities - new product introduction
- marketing capabilities - manufacturing capabilities
The shakeout stage of the industry life cycle is dominated by ______. - early adopters - laggards - the late majority - the early majority
The early majority
A significant difference between the early majority and the late majority is that ______. - the late majority is not confident in using new technologies - the late majority is more adept with technology - the early majority enjoys providing voluntary feedback to producers - the late majority is comfortable purchasing from new or unknown firms
The late majority is not confident in using new technologies
Select all that apply Which of the following are advantages of platform businesses compared to pipeline businesses? (Check all that apply.) - They unlock new sources of value creation and supply - They scale efficiently by eliminating gatekeepers - They own and control all their resources - They benefit from community feedback
- They unlock new sources of value creation and supply - They scale efficiently by eliminating gatekeepers - They benefit from community feedback
A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as _____. - the long tail - strategic entrepreneurship - the shakeout stage - the short leash
The long tail
Select all that apply Which characteristics always change as the industry life cycle progresses? - type of customer - accounting standards - type and level of innovation - number and size of competitors
- type of customer - type and level of innovation - number and size of competitors
During the shakeout stage of the industry life cycle, profits degrade for ______. - a few of the weakest firms - all but the most efficient firms - all firms in the industry - the most efficient firms only
All but the most efficient firms
The introductory stage of the industry life cycle is a ______-intensive process. - capital - sales - leisure - profit
Capital
During the decline stage of the industry life cycle, product innovation efforts ______. - increase slightly - come to a halt - decline slightly - increase dramatically
Come to a halt
Educational organizations, such as Coursera, offer massive open online courses on the web as an alternative to traditional universities. This is an example of a(n) ______ innovation. - radical - disruptive - incremental - architectural
Disruptive
Which type of innovation uses new technologies to invade an existing market from the bottom up? - incremental - radical - architectural - disruptive
Disruptive
Which of the following innovations below is said to invades an existing market from the bottom up by leveraging novel technologies in order to penetrate existing markets? - disruptive innovation - architectural innovation - radical innovation - incremental innovation
Disruptive innovation
Customers who desire a product because it stokes their imagination and creativity are known as ______. - laggards - the early majority - early adopters - the late majority
Early adopters
True or false: Businesses evolve through each stage in the industry life cycle.
False
In a typical industry life cycle, an industry immediately moves to the ________ after the introduction stage. - maturity stage - growth stage - shakeout stage - decline stage
Growth stage
Firms that pursue a(n) ______ strategy minimize the amount of resources devoted to product support in order to maximize cash flow. - maintain - harvest - exit - consolidate
Harvest
The tendency of customers to enter the market in large numbers during the growth stage of the industry life cycle is known as the ___________ effect.
Herding
The customer segment known as the early majority tends to enter the market ______. - in large numbers - only during the decline stage of the industry life cycle - slowly and sporadically - as soon as the product is made available for beta testing
In large numbers
The most common type of innovation is ______ innovation. - radical - disruptive - technological - incremental
Incremental
Which type of innovation applies to existing markets and existing technologies? - radical - disruptive - incremental - architectural
Incremental
A(n) ________ occurs when a firm steadily improves an existing product thereby targeting an existing market while using existing technology. - radical innovation - incremental innovation - process innovation - architectural innovation
Incremental innovation
After a firm has gained market acceptance with a radical innovation, it will typically follow up with ______. - an exit strategy - another radical innovation - industry consolidation - incremental innovations
Incremental innovations
What is the commercialization of an invention called? - innovation - imitation - the introduction stage - first-mover advantage
Innovation
The success of Netflix can be attributed to which of the following? - It relied on its brand image to attract and keep subscribers - It partnered with large conglomerates that already had market share - It disrupted the TV industry more than once to gain a competitive advantage - It stuck to a tried-and-true traditional business formula
It disrupted the TV industry more than once to gain a competitive advantage
The market environment in which all players participate relative to the platform is the _________ ecosystem.
Platform
It is common for firms to get their start by introducing a(n) ______ innovation. - disruptive - radical - entrepreneurial - incremental
Radical
True or false: Industries often tend to follow a predictable industry life cycle.
True
True or false: Innovation can create value for one firm while destroying value for another.
True
True or false: The chasm separating the early adopters from the early majority is the largest.
True
The fundamental question of ______ is how to combine entrepreneurship with the concepts of strategic management in order to achieve a competitive advantage. - defined technological entrepreneurship - planned emergence - strategic entrepreneurship - incremental innovation
Strategic entrepreneurship
The customer segment known as ______ enjoy testing product prototypes and providing voluntary feedback that companies use to perfect their products. - laggards - early adopters - technology enthusiasts - the early majority
Technology enthusiasts
Which term is used for the customer segment in the introductory stage of the industry life cycle? - early adopters - the early majority - the late majority - technology enthusiasts - laggards
Technology enthusiasts
True or false: Platform businesses are organized as traditional linear pipelines.
False
Of the following competencies, which one is the most important in the introductory stage of the industry life cycle? - international relations - human resources - sustainability - marketing
Marketing
Netflix was able to attract subscribers and grow largely because ______. - media executives did not view it as a threat - it offered broadcast television series in real time - it was free - it offered original content before any other service
Media executives did not view it as a threat
While the industry for tablet computers is in the growth stage, the laptop industry is in its shakeout stage. What does this imply? - The tablet industry is ahead of the laptop industry in the industry life cycle - While the market demand for tablets will be high, the demand for laptops will be limited - The number of competitors entering the laptop industry will be more than those entering the tablet computers industry - 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
Radical innovations are usually introduced by ______. - industry incumbents - governmental agencies - amateur inventors - new entrepreneurial ventures
New entrepreneurial ventures
Select all that apply Which of the following metrics are used by social entrepreneurs to evaluate performance? (Check all that apply.) - people - power - planet - profits - permanence
- people - planet - profits
Which of the following metrics are used by social entrepreneurs to evaluate performance? (Check all that apply.) - power - profits - people - permanence - planet
- profits - people - planet
Select all that apply During the growth stage of the industry life cycle, firms focus on process innovation in order to ______. (Check all that apply.) - improve customer service - reduce per-unit production costs - generate new product ideas - increase production volume
- reduce per-unit production costs - increase production volume
The invention of small desktop copiers to create a new consumer market using the same technology as large, stand-alone copiers is an example of a(n) ______ innovation. - radical - incremental - disruptive - architectural
Architectural
When a firm reconfigures components of an existing technology to enter into new markets, they are said to be employing - radical innovation - incremental innovation - architectural innovation - disruptive innovation
Architectural innovation
A disruptive innovation typically requires a(n) ______ approach to capturing the market. - bottom-up - top-down - upside-down - inside-out
Bottom-up
Stuart 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 Stuart best represent? - technology enthusiasts - early adopters - late majority - laggards
Early adopters
Which customer segment dominates the market growth stage of the industry life cycle? - technology enthusiasts - laggards - the late majority - early adopters
Early adopters
During which stage does a standard develop? - growth - introduction - maturity - decline
Growth
Innovation helps firms achieve a competitive advantage by ______. - identifying key business activities - redefining the market in their favor - eliminating competition - raising prices
Redefining the market in their favor
Select all that apply Which of the following statements about the industry life cycle are true? (Check all that apply.) - Industries can be rejuvenated, even during the decline stage - External factors, such as fads or demographic changes, have no effect on the industry life cycle - Innovations are always introduced during the introduction stage - Not all industries go through the entire life cycle
- Industries can be rejuvenated, even during the decline stage - Not all industries go through the entire life cycle
Select all that apply Which of the following are characteristics of the early majority? (Check all that apply.) - They are not concerned with cost - They have a strong sense of practicality - They are quick to commit to new products - They weigh benefits and costs carefully
- They have a strong sense of practicality - They weigh benefits and costs carefully
Select all that apply Which of the following are ways in which standards can emerge? (Check all that apply.) - by being imposed by government or other agencies - by having firms purchase the license for a standard - through market competition - by letting consumers vote for their preferred standard
- by being imposed by government or other agencies - through market competition
Select all that apply Which of the following are stages of the industry life cycle? (Check all that apply.) - decline - growth - standardization - shakeout - maturity - multiplication - introduction
- decline - growth - shakeout - maturity - introduction
Select all that apply Which of the following are types of innovation? (Check all that apply.) - consolidation - disruptive - architectural - harvest - incremental - radical
- disruptive - architectural - incremental - radical
Select all that apply In order for a product or service to be considered patentable, it must be ______. (Check all that apply.) - non-obvious - useful - inexpensive - novel - accessible
- non-obvious - useful - novel
Select all that apply Which two customer segments make up the largest percentage of the market potential? (Check all that apply.) - early adopters - the early majority - the late majority - technology enthusiasts - laggards
- the early majority - the late majority
Select all that apply First-mover disadvantages can include which of the following? (Check all that apply.) - the need to find distribution channels - the need to compete on price instead of product features - the need to continuously perfect a product - the need to educate potential customers about the product's benefits
- the need to find distribution channels - the need to continuously perfect a product - the need to educate potential customers about the product's benefits
Click and drag on elements in order Place the S-curve development of most industries in order, with the first step at the top. - demand accelerates - demand for a new product is slow to take off - demand becomes negative as a market contracts - demand turns to zero - demand decelerates
1. demand for a new product is slow to take off 2. demand accelerates 3. demand decelerates 4. demand turns to zero 5. demand becomes negative as a market contracts
An incumbent firm in a winner-take-all market will typically seek to extend the time it can extract profits through ______. - a focus on incremental innovations - a change to its strategic position - an attempt to change the industry structure - a focus on radical innovations
A focus on incremental innovations
Which statement describes the long tail? - A small amount of revenue derived from a small number of units among almost unlimited choices - A large amount of revenue derived from a small number of units among almost unlimited choices - A small amount of revenue derived from a large number of units among a small number of choices - A large amount of revenue derived from a large number of units among a small number of choices
A large amount of revenue derived from a small number of units among almost unlimited choices
An architectural innovation is ______. - an innovation that builds on an established knowledge base and steadily improves an existing product - an innovation that leverages new technologies to attack existing markets from the bottom up - an innovation that draws on novel methods or materials and is derived from an entirely different knowledge base - a new product in which existing technologies are used in a novel way to create new markets
A new product in which existing technologies are used in a novel way to create new markets
Which of the following is most likely to produce a radical innovation? - a financial services firm that has been in business for 75 years and has longstanding customer relationships - a new sportswear company with a handful of employees that perform a number of loosely defined roles - an established restaurant chain with a clear organizational structure and strictly defined roles for employees - a leading toy manufacturer with a significant interest in maintaining the status quo
A new sportswear company with a handful of employees that perform a number of loosely defined roles
Which of the following statements about patents is not true? - a patent over a product translates into a permanent monopoly position - a patent can be enforced in court - A patent is a form of intellectual property - A patent can be obtained when an invention is useful, novel, and non obvious
A patent over a product translates into a permanent monopoly position
Which of the following statements is true? - Platform businesses have a major weakness: they are not very successful at value creation - A platform business exists to help make matches among users and facilitate the exchange of goods, services or social currency - A platform business usually must rely on pipeline businesses to connect it with consumers - Platform businesses are dependent on electronic media and thus are a new development in the business world
A platform business exists to help make matches among users and facilitate the exchange of goods, services or social currency
Janet is a marketing and sales employee at 4-Ever-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 Janet? - a category captain - an intrapreneur - a venture capitalist - a franchised dealer
An intrapreneur
Which of the following is an example of invention? - nike rereleasing an exact replica of a popular sneaker from the 1980s - Walmart increasing the number of local and organic products in its stores - McDonald's cutting items from its dollar menu - Apple combining smart phone and wristwatch technologies to create the Apple Watch
Apple combining smart phone and wristwatch technologies to create the Apple Watch
A disruptive innovation is more likely to be successful if it ______. - attacks the market from the top down - secures the interest of average users first and extends its reach both upward and downward - simultaneously targets low- and high-end users - captures the low end of the market first
Captures the low end of the market first
Entrepreneurs innovate by ______. - acquiring promising start-up companies - commercializing new ideas and inventions - increasing demand for existing products - limiting competition in a given market
Commercializing new ideas and inventions
The explosive growth of the Apple iPhone was due in part to the network effects created by ______. - competitors' phones - complementary apps - the rise of internet access - Apple's significant cash holdings
Complementary apps
One way to counter a disruptive innovation is to ______. - avoid reverse disruption - stop innovating - protect the high end of the market - continue to innovate
Continue to innovate
The negative effect of innovative ride-sharing services, such as Uber and Lyft, on traditional taxi cab companies is an example of ______. - an adoption process - corporate social responsibility - peer management - creative destruction
Creative destruction
The process by which word-processor manufacturer Wang Laboratories captured the market from typewriter manufacturers, and which explains how it was later replaced by PC manufacturers and mobile-phone companies, is known as ______. - the temporary value theorem - creative destruction - fading beauty - create-and-die
Creative destruction
In the ______ stage of the industry life cycle, falling demand leads to a reduction in market size. - consolidation - introduction - shakeout - decline - growth
Decline
During the growth stage of the industry life cycle, ______ increases rapidly. - the cost of production - the research and development - imitation - demand
Demand
What question is asked along the horizontal axis of the markets-and-technology framework? - Is the innovation architectural in design or incremental? - Is the innovation radical or disruptive to current technologies? - Does the innovation build on existing technologies or create new ones? - Is the innovation targeted toward existing markets or new markets?
Does the innovation build on existing technologies or create new ones?
According to the crossing-the-chasm framework, the largest difference in consumer expectations is between ______. - the early majority and the late majority - the late majority and laggards - early adopters and the early majority - technology enthusiasts and early adopters
Early adopters and the early majority
Because Lorraine wants to introduce innovative new production processes to the local restaurant industry, she is considered a(n) ______. - imitator - hotelier - provocateur - entrepreneur
Entrepreneur
The process in which change agents create new products or processes at significant economic risk is known as ______. - competitive advantage - franchising - branding - entrepreneurship
Entrepreneurship
_______ is best described as the process by which people undertake economic risk to innovate—to create new products, processes, and sometimes new organizations. - crowdsourcing - headhunting - cannibalization - entrepreneurship
Entrepreneurship
Radical innovation occurs when an existing firm recombines its ________ with a new stream of knowledge for ________. - existing knowledge; new markets - new knowledge; existing markets - competitor's analysis; industry penetration - value chain; older markets
Existing knowledge; new markets
During the decline stage of the industry life cycle, which strategic option requires firms to declare bankruptcy or undergo liquidation? - maintain - consolidate - exit - harvest
Exit
_________- mover advantage refers to the competitive benefits that accrue to the successful innovator.
First
In the maturity stage of the industry life cycle, industry growth ______. - flattens or even declines - increases slightly - maintains the same pace as during the growth stage - increases dramatically
Flattens or even declines
Platforms scale more efficiently than pipelines by eliminating _______________. - outperform - bankrupt - gatekeepers - competition - producers - leveraging - developing - management - value creation - demand
Gatekeepers
The stage during which a new product has gained some acceptance, thus causing first-time buyers to eagerly acquire the product and accelerate demand, is the ______ stage. - innovation - maturity - growth - shakeout
Growth
Which of the following allows a firm to redefine a market in its favor? - innovation - invention - implementation - identification
Innovation
A firm's embeddedness in a complex network of suppliers, buyers, and complementors, which requires interdependent strategic decision making, is referred to as a(n) _____. - competitive landscape - innovation ecosystem - idea stream - invention channel
Innovation ecosystem
People who pursue entrepreneurship within an existing company are called ______. - entrepreneurs - inventors - managers - intrapreneurs
Intrapreneurs
The second step of the four-step innovation process involves the transformation of an idea into a new product or process and is known as ______. - implementation - initiation - invention - imitation
Invention
________ is best described as the process of transformation of an idea into a new product or process, or the modification and recombination of existing ones. - invention - direct imitation - bootstrapping - lean manufacturing
Invention
In the third step of the innovation process, a(n) - invention is imitated by competitors - new idea is presented in terms of abstract concepts - new idea is expressed as findings derived from basic research - invention is commercialized by entrepreneurs
Invention is commercialized by entrepreneurs
Which customer segment will only adopt a new product when it becomes absolutely necessary? - technology enthusiasts - the late majority - laggards - late adopters
Laggards
Platform businesses ________________ digital technology can grow much faster. - outperform - bankrupt - gatekeepers - competition - producers - leveraging - developing - management - value creation - demand
Leveraging
Using a ______ strategy, a firm continues to market its products at the same level despite a decline in consumer demand. - harvest - maintain - consolidate - growth
Maintain
Which of the following is an example of creative destruction? - Lehman Brothers declaring bankruptcy after an accounting scandal - Starbucks purchasing a smaller competitor - auto manufacturers adding Internet access to new vehicles - mobile phones replacing traditional telephones
Mobile phones replacing traditional telephones
When Apple launched the iPhone, it quickly became popular because many companies created apps that worked exclusively on the iPhone. Which of the following did Apple leverage to create a competitive advantage? - social entrepreneurship - everyday low pricing strategy - network effects - distribution channels
Network effects
Most firms consider laggards to be ______. - the most likely to purchase innovative products - a valuable source of product feedback - the most prized customer segment - not worth the effort of pursuing
Not worth the effort of pursuing
Which of the following statements about the maturity stage of the industry life cycle is true? - Product innovation becomes the most important competitive weapon - Only a few large firms remain - Demand for the product increases - The market has many competitors, each competing for a piece of the pie
Only a few large firms remain
A large incumbent firm that has established a number of formalized practices and procedures may have a difficult time producing radical innovations due to its ______. - high labor costs - organizational inertia - competitive complacency - conflicting investor interests
Organizational inertia
Platform businesses tend to frequently ________________ pipeline businesses. - outperform - bankrupt - gatekeepers - competition - producers - leveraging - developing - management - value creation - demand
Outperform
A form of intellectual property that grants an inventor a temporary monopoly on a new product or process in exchange for disclosing the details of how the product or process is made is called a(n) ______. - copyright - trademark - patent - inventino
Patent
An enterprise that creates value by matching external producers and consumers in a way that creates value for all participants and that depends on the infrastructure that the platform manages is a(n) ______. - linear pipeline - herding effect - platform business - incremental innovation
Platform business
Business model innovations that use technology to interactively connect organizations, information, resources, and people in value-generating transactions are ______. - organizational inertia - platforms - linear models - unethical
Platforms
New methods for producing existing products or delivering existing services are known as ______. - business-level strategies - industry standards - process innovations - product innovations
Process innovations
Feedback loops from consumers to the _______________ allow platforms to fine-tune their offerings and to benefit from big data analytics. - outperform - bankrupt - gatekeepers - competition - producers - leveraging - developing - management - value creation - demand
Producers
Match the type of innovation (on the left) with an example (on the right). Instructions - product and process to either electric vehicle or biotechnology
Product is to electric vehicle as process is to biotechnology
During the decline stage of the industry life cycle, some firms choose to consolidate, meaning that they ______. - put strong downward pressure on prices to stimulate demand - focus on process innovation more than product innovation - introduce complementary products to encourage network effects - purchase rival firms in order to achieve near-monopolistic control of the industry
Purchase rival firms in order to achieve near-monopolistic control of the industry
PixelPower is a small app developer seeking to enter the highly competitive mobile games industry. In order to overcome the industry's barriers to entry and compete against incumbent firms, Pixel Power has an economic incentive to ______. - form a joint venture with other small firms - pursue incremental innovations - follow established industry standards and practices - pursue radical innovations
Pursue radical innovations
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) _________ innovation. - radical - incremental - disruptive - architectural
Radical
Innovations that target NEW markets and represent a major break from existing technologies or ways of thinking, such as the digital camera, the touch-screen smart phone, or the decoding of the human genome, are examples of ______ innovations. - disruptive - radical - incremental - architectural
Radical
Incumbent firms that are part of an innovation ecosystem are less likely to produce radical innovations because ______. - the danger of other members of the ecosystem stealing key intellectual property is too high - radical innovations disrupt established relationships within the ecosystem - radical innovations are too expensive to produce - radical innovations would increase the firms' reliance on the ecosystem
Radical innovations disrupt established relationships within the ecosystem
During the introductory stage of the industry life cycle, innovators will likely devote most of their time, money, and effort to ______. - research and development - management - human resource recruitment - operations management
Research and development
The development of most industries follows a(n) __. - I-curbe - S-curve - M-curve - C-curve
S-curve
In which stage of the industry life cycle does competition become more intense, forcing weaker firms out of the industry? - decline - maturity - shakeout - growth
Shakeout
Attempting to address social or ecological issues when building a for-profit business is known as ______. - intrapreneurship - sustainable entrepreneurship - strategic entrepreneurship - social entrepreneurship
Social entrepreneurship
Which of the following types of entrepreneurship involves leveraging innovation for competitive advantage? - triple-botton-line - intramural - strategic - social
Strategic
A patent holder typically has a ______. - temporary competitive disadvantage - sustainable competitive advantage - permanent monopoly - temporary monopoly
Temporary monopoly
The one key advantage of the effective use of technology for business platforms is that ______. - the barriers of time and space are reduced - businesses and consumers no longer care about creating value - costs are drastically reduced for consumers - the increased number of gatekeepers ensure validity of information
The barriers of time and space are reduced
The shakeout stage of the industry life cycle is dominated by ______. - early adopters - the early majority - laggards - the late majority
The early majority
How are the early majority and late majority different in their attitudes toward technology? - The early majority is very concerned with what new technology can do for them; the late majority is not - The early majority is confident in their ability to master the new technology; the late majority is not - The early majority is concerned that many new technologies will fade away; the late majority is not - The early majority is strongly influenced by the endorsements of others; 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 5G compatible devices is in the introduction stage, the industry for 3G compatible devices are in the maturity stage. What does this imply? - The market for 3G compatible devices has reached its maximum size, whereas the market for 5G compatible devices is still small in size - The 5G compatible devices industry will focus on process innovation, whereas the 3G compatible devices industry will focus on product innovation - The 3G compatible devices is likely to focus on achieving market acceptance, while the 5G compatible devices industry is likely to focus on the harvest strategy - The 5G compatible devices industry will focus on pursuing an integration strategy, while the 3G compatible devices industry will focus on pursuing a differentiation strategy
The market for 3G compatible devices has reached its maximum size, whereas the market for 5G compatible devices is still small in size
What term is used to refer to the market environment in which all players participate relative to the platform? - the pipeline ecosystem - the platform ecosystem - the platform innovative system - the multi-sided market
The platform ecosystem
According to the crossing-the-chasm framework, a firm's transition between the different parts of the industry life cycle is difficult because - the number and size of competitors change throughout the industry life cycle - the firm tends to follow a predictable industry life cycle - there are frequent changes in the supply and demand sides of the market throughout the industry life cycle - there is a big gulf separating the early adopters from customer segments that make up the mass market
There is a big gulf separating the early adopters from customer segments that make up the mass market
Which of the following statements is typically true of early adopters? - They enter the market in the maturity stage of the industry life cycle - They appreciate new technology that can add value to their personal and professional lives - They make up the mass market together with the technology enthusiasts - They enjoy using beta versions of products and providing free suggestions to companies
They appreciate new technology that can add value to their personal and professional lives
Which of the following statements about platform businesses is true? - They can grow faster than pipeline businesses - They tend to receive little to no benefits from community feedback - Growth involves time and planning and a complex supply chain - They are not efficient in managing the flow of information from producer to consumer
They can grow faster than pipeline businesses
Which of the following is a disadvantage faced by first movers in an industry? - They will have no access to intellectual properties such as critical patents - They cannot benefit much from network effects - They cannot benefit from learning and experience curve effects like the late entrants - They will have to find distribution channels and complementary assets
They will have to find distribution channels and complementary assets
The ______ determines whether an invention can be patented. - U.S. Department of Labor - market - chief executive officer (CEO) - U.S. Patent and Trademark Office
U.S. Patent and Trademark Office
The ______ determines whether an invention can be patented. - chief executive officer (CEO) - U.S. Department of Labor - U.S. Patent and Trademark Office - market
U.S. Patent and Trademark Office
Which of the following is the best example of a platform business? - McDonald's restaurants - L.L. Bean clothing retailers - Coca Cola soft drink producer - Uber ride-hailing services
Uber ride-hailing services
In developed countries, the industry for thumb drives is in the maturity stage, and the industry for floppy disks is in the decline stage. What does this imply? - While the thumb drive industry has reached its maximum market size, the market size for floppy disks is small and contracting - The industry structure for floppy disks is that of perfect competition, whereas the industry structure for thumb drives is monopolistically competitive - The number of new entrants in the floppy disks industry will be more when compared to the industry for thumb drives - While the buyers of floppy disks can be categorized under early majority, the customers of thumb drives can be categorized under late majority
While the thumb drive industry has reached its maximum market size, the market size for floppy disks is small and contracting