Question 1

During the _______ stage of an industry life cycle,market demand is at a minimum and competitive intensity increases.

Accepted Answer

A)   Introduction
B)   Innovative
C)   Maturity
D)   DisruptiveE) All of the above
F) A) and D)

Question 2

When a new product,process,or idea is introduced into the market,it has been:

Accepted Answer

A)   Extracted.
B)   Commercialized.
C)   Invented.
D)   Executed.E) A) and B)
F) C) and D)

Question 3

The ZIP drive for data storage is an example of a(n) ___________ innovation that began as a low-cost solution to an existing problem.

Accepted Answer

A)   Disruptive
B)   Technical
C)   Radical
D)   AdvancedE) A) and C)
F) B) and D)

Question 4

It is impossible to predict when a new innovation will actually lead to updated technological standards.

Accepted Answer

A) True 
 B)False

Question 5

Each of the following are important reasons to understand the strategic implications of an industry life cycle EXCEPT:

Accepted Answer

A)   Each stage attracts different customer groups with unique needs.
B)   The firm should copy the industry leader in each distinct stage.
C)   Different competencies are required in each stage that must be created if not existent.
D)   The firm needs to know when changes in demand require changes in strategy.E) C) and D)
F) None of the above

Question 6

When a firm successfully commercializes a new product or service,it is able to extract temporary ______________ but must continue to innovate to sustain competitive advantage(s) .

Accepted Answer

A)   Monopoly profits
B)   Industry acknowledgements
C)   Lower costs of capital
D)   Competitive parityE) C) and D)
F) B) and C)

Question 7

When management modifies strategic objectives based on which stage an industry is in they are responding to a(n) :

Accepted Answer

A)   Industry life cycle.
B)   Growth life cycle.
C)   Economic life cycle.
D)   Entrepreneurial life cycle.E) A) and B)
F) None of the above

Question 8

Generally,a firm that ___________ is able to achieve competitive advantages for the longest time period because this type of innovation is novel and not easily duplicated at first.

Accepted Answer

A)   Architecturally innovates
B)   Focuses on costs
C)   Radically innovates
D)   Hyper-innovatesE) C) and D)
F) None of the above

Question 9

The agents who create change in an industry by introducing new ideas and products are:

Accepted Answer

A)   Executives.
B)   Speculators.
C)   Entrepreneurs.
D)   Investors.E) All of the above
F) A) and D)

Question 10

As noted in ChapterCase 7,the success of Wikipedia is attributed to all of the following EXCEPT:

Accepted Answer

A)   Leveraging innovations enabled by the Internet.
B)   Utilizing crowdsourcing.
C)   Ignoring the "long tail."
D)   Maintaining a reputation for accuracy.E) A) and B)
F) None of the above

Question 11

Absorptive capacity is important for a firm to have because:

Accepted Answer

A)   It must be able to absorb losses during the growth stage.
B)   Without new knowledge the firm could face a "technological lock-out."
C)   Profits will increase if there is excess capacity in the industry.
D)   Lean manufacturing is no longer a strategic weapon.E) A) and C)
F) A) and B)

Question 12

As noted in ChapterCase 7,Microsoft destroyed about half the value created by Encyclopedia Britannica by introducing the Encarta CD in 1993.In turn,the online Wikipedia destroyed Encarta's business,which was shut down in 2009.This is an example of how discontinuities can impact the sustainability of a firm.

Accepted Answer

A) True 
 B)False

Question 13

Why are process innovations more important than product innovations over time in a given industry?

Accepted Answer

Once a dominant design (or standard)is e...

Question 14

Generally,as the level of _________ innovation declines,the level of _________ innovation increases.

Accepted Answer

A)   Product; process
B)   Process; procedural
C)   Incremental; drastic
D)   Efficient; inefficientE) None of the above
F) A) and D)

Question 15

According to Michael Porter,firms face hypercompetition because they rely too much on _______________,which leads to a failure of distinct strategic positioning for the individual firm.

Accepted Answer

A)   Imitating one another
B)   Reaching technological limitations
C)   Joint destruction
D)   Creative competitionE) A) and B)
F) A) and C)

Question 16

Reverse innovation occurs when a rival reengineers one of the firm's product offerings.

Accepted Answer

A) True 
 B)False

Question 17

A disruptive innovation leverages _______ technologies,while architectural innovations are based on ________ technologies.

Accepted Answer

A)   Existing; new
B)   Essential; drastic
C)   New; existing
D)   Drastic; essentialE) None of the above
F) B) and C)

Question 18

Which of the following is NOT true about the decline stage of an industry life cycle?

Accepted Answer

A)   Inefficient firms exit the industry.
B)   "Laggards" are the last consumer segment to enter the market.
C)   Firms that consolidate and buy their rivals are typically at a disadvantage.
D)   There is generally excess industry capacity.E) A) and C)
F) B) and C)

Question 19

The likelihood of a discontinuity occurring in an industry:

Accepted Answer

A)   Is very strong if the industry produces simplified products.
B)   Is very strong if the existing technology is close to its physical limit.
C)   Is very weak unless the new technology is cheaper.
D)   Cannot be predicted.E) A) and B)
F) A) and D)

Question 20

A firm can protect itself from hypercompetition by NOT imitating its rivals.

Accepted Answer

A) True 
 B)False

Exam 7: Business Strategy: Innovation and Strategic Entrepreneurship

Each of the following are important reasons to understand the strategic implications of an industry life cycle EXCEPT:

Correct Answer
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Correct Answer
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When management modifies strategic objectives based on which stage an industry is in they are responding to a(n) :

Correct Answer
verified

Which of the following is NOT true about the decline stage of an industry life cycle?

Correct Answer
verified

When a new product,process,or idea is introduced into the market,it has been:

Correct Answer
verified

Reverse innovation occurs when a rival reengineers one of the firm's product offerings.

Correct Answer
verified

Absorptive capacity is important for a firm to have because:

Correct Answer
verified

The likelihood of a discontinuity occurring in an industry:

Correct Answer
verified

A disruptive innovation leverages _ technologies,while architectural innovations are based on __ technologies.

Correct Answer
verified

According to Michael Porter,firms face hypercompetition because they rely too much on _______________,which leads to a failure of distinct strategic positioning for the individual firm.

Correct Answer
verified

As noted in ChapterCase 7,the success of Wikipedia is attributed to all of the following EXCEPT:

Correct Answer
verified

It is impossible to predict when a new innovation will actually lead to updated technological standards.

Correct Answer
verified

The ZIP drive for data storage is an example of a(n) ___________ innovation that began as a low-cost solution to an existing problem.

Correct Answer
verified

Generally,as the level of _ innovation declines,the level of _ innovation increases.

Correct Answer
verified

The agents who create change in an industry by introducing new ideas and products are:

Correct Answer
verified

A firm can protect itself from hypercompetition by NOT imitating its rivals.

Correct Answer
verified

Generally,a firm that ___________ is able to achieve competitive advantages for the longest time period because this type of innovation is novel and not easily duplicated at first.

Correct Answer
verified

During the _______ stage of an industry life cycle,market demand is at a minimum and competitive intensity increases.

Correct Answer
verified

Why are process innovations more important than product innovations over time in a given industry?

Correct Answer
verified
Once a dominant design (or standard)is e...
View Answer

When a firm successfully commercializes a new product or service,it is able to extract temporary ______________ but must continue to innovate to sustain competitive advantage(s) .

Correct Answer
verified

Exam 7: Business Strategy: Innovation and Strategic Entrepreneurship

Each of the following are important reasons to understand the strategic implications of an industry life cycle EXCEPT:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When management modifies strategic objectives based on which stage an industry is in they are responding to a(n) :

Correct AnswerverifiedShow Answer

Which of the following is NOT true about the decline stage of an industry life cycle?

Correct AnswerverifiedShow Answer

When a new product,process,or idea is introduced into the market,it has been:

Correct AnswerverifiedShow Answer

Reverse innovation occurs when a rival reengineers one of the firm's product offerings.

Correct AnswerverifiedShow Answer

Absorptive capacity is important for a firm to have because:

Correct AnswerverifiedShow Answer

The likelihood of a discontinuity occurring in an industry:

Correct AnswerverifiedShow Answer

A disruptive innovation leverages _______ technologies,while architectural innovations are based on ________ technologies.

Correct AnswerverifiedShow Answer

According to Michael Porter,firms face hypercompetition because they rely too much on _______________,which leads to a failure of distinct strategic positioning for the individual firm.

Correct AnswerverifiedShow Answer

As noted in ChapterCase 7,the success of Wikipedia is attributed to all of the following EXCEPT:

Correct AnswerverifiedShow Answer

It is impossible to predict when a new innovation will actually lead to updated technological standards.

Correct AnswerverifiedShow Answer

The ZIP drive for data storage is an example of a(n) ___________ innovation that began as a low-cost solution to an existing problem.

Correct AnswerverifiedShow Answer

Generally,as the level of _________ innovation declines,the level of _________ innovation increases.

Correct AnswerverifiedShow Answer

The agents who create change in an industry by introducing new ideas and products are:

Correct AnswerverifiedShow Answer

A firm can protect itself from hypercompetition by NOT imitating its rivals.

Correct AnswerverifiedShow Answer

Generally,a firm that ___________ is able to achieve competitive advantages for the longest time period because this type of innovation is novel and not easily duplicated at first.

Correct AnswerverifiedShow Answer

During the _______ stage of an industry life cycle,market demand is at a minimum and competitive intensity increases.

Correct AnswerverifiedShow Answer

Why are process innovations more important than product innovations over time in a given industry?

Correct AnswerverifiedOnce a dominant design (or standard)is e...View AnswerShow Answer

When a firm successfully commercializes a new product or service,it is able to extract temporary ______________ but must continue to innovate to sustain competitive advantage(s) .

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A disruptive innovation leverages _ technologies,while architectural innovations are based on __ technologies.

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Generally,as the level of _ innovation declines,the level of _ innovation increases.

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Once a dominant design (or standard)is e...
View Answer

Correct Answer
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