Question 1

As the inventor of hypertension medication, OneSure Pharmaceuticals (OSP) Inc.was able to reap the benefits of economies of scale due to a large consumer demand for the drug.Even when competitors later developed similar drugs after the expiry of OSP's patents, regular users did not want to switch because they were concerned about possible side-effects.Which of the following benefits does this scenario best illustrate?

Accepted Answer

A)   First-mover advantages
B)   Social benefits
C)   Network externalities
D)   Fringe benefitsE) A) and D)
F) B) and C)

Question 2

Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?

Accepted Answer

A)   The company wanted to focus on process innovation rather than product innovation.
B)   The company was no longer able to generate adequate growth through closed innovation.
C)   The company wanted to carefully protect its intellectual property.
D)   The supply and mobility of unskilled workers within the industry had increased drastically.E) B) and C)
F) C) and D)

Question 3

Which of the conditions prevail when an industry is at the end of its life cycle?

Accepted Answer

A)   The level of process innovation reaches its maximum as firms attempt to lower cost.
B)   The industry structure is perfectly competitive with a large number of buyers and sellers.
C)   The strategic objectives of businesses will involve gaining market acceptance.
D)   The market reaches its maximum size at this stage.E) A) and B)
F) All of the above

Question 4

When TrueHeal Pharma Inc.released a new drug to treat insomnia, its chemical composition was disclosed at the back of the drug's cover.However, any attempts by competitors to copy the chemical composition would result in infringement of TrueHeal Pharma's intellectual property rights.Thus, the drug is protected by a _____.

Accepted Answer

A)   promissory bill
B)   patent
C)   franchise
D)   royaltyE) A) and B)
F) A) and D)

Question 5

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Accepted Answer

A)   The barriers to entry increase during this stage.
B)   The firms in the industry yield the highest profits during this phase.
C)   Rivalry among competitors decreases in this stage.
D)   The weaker firms are forced out of the industry in this stage.E) A) and B)
F) A) and C)

Question 6

Why do incumbent firms favor incremental innovation over radical innovation?

Accepted Answer

Incumbent firms favor incremental innova...

Question 7

The strategic objective of a first mover during the introduction stage of the industry life cycle is to:

Accepted Answer

A)   pursue a harvest strategy.
B)   survive by drawing on deep pockets.
C)   achieve market acceptance.
D)   lower entry barriers.E) B) and C)
F) None of the above

Question 8

Which of the following statements accurately brings out the distinction between the introduction and growth stages of the industry life cycle?

Accepted Answer

A)   There is more strategic variety in the growth stage when compared to the introduction stage.
B)   The number of competitors is more in the introduction stage than the growth stage.
C)   The market size for a new product or service is larger in the introduction stage when compared to the growth stage.
D)   While achieving market acceptance is the strategic objective during the introduction stage, the objective in the growth stage is to pursue a harvest strategy.E) A) and C)
F) A) and D)

Question 9

Who are technology enthusiasts?

Accepted Answer

The customer segment in the introductory...

Question 10

What are the economic incentives associated with incumbent firms?

Accepted Answer

Once an innovator has become an establis...

Question 11

What do you mean by a standard? How does it affect an industry?

Accepted Answer

A standard signals the market's agreemen...

Question 12

ModelLife Electronics Inc.is a company that builds diagnostic devices.It was the first company to develop a compact MRI scanner by reconfiguring the components of the MRI technology.This smaller and user-friendly version of the huge MRI scanner created demand from small hospitals, nursing homes, and private practice doctors who were earlier dependent on the scanning machines in large hospitals.Which of the following types of innovations does this scenario best illustrate?

Accepted Answer

A)   Disruptive innovation
B)   Incremental innovation
C)   Radical innovation
D)   Architectural innovationE) A) and B)
F) B) and C)

Question 13

Explain the reasons for increasingly rapid technological diffusion and adoption.

Accepted Answer

One determinant is that initial innovati...

Question 14

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and founded Amazon, which is now the world's largest online retailer.This is clearly an example of a(n) :

Accepted Answer

A)   firm that uses closed innovation.
B)   entrepreneur who commercialized invention into an innovation.
C)   business that entered the industry during its maturity stage.
D)   exception to the long tail business model.E) B) and C)
F) None of the above

Question 15

The customers entering the market in the growth stage are primarily _____.

Accepted Answer

A)   technology enthusiasts
B)   laggards
C)   early adopters
D)   late majorityE) All of the above
F) B) and C)

Question 16

On which of the following tenets is the crossing-the-chasm framework, suggested by Geoffrey Moore, based?

Accepted Answer

A)   The number and size of competitors remain constant throughout the industry life cycle.
B)   Each stage of the industry life cycle is dominated by a different customer group.
C)   Industries tend to follow an unpredictable industry life cycle.
D)   The supply and demand sides of the market remain constant irrespective of the phase of the industry life cycle.E) A) and B)
F) A) and C)

Question 17

As a start-up company, Virtue Mobiles Inc.entered the low end of the highly competitive cell phone industry with its low-cost smartphones.Initially, the company was able to sell its inferior technology due to its low prices.Over the years, however, its rate of technology improvements increased above the industry standards.This helped the company to create a strong strategic position for its smartphones in the high-end segment and claim a premium price.Which of the following types of innovation does this scenario best illustrate?

Accepted Answer

A)   Radical innovation
B)   Incremental innovation
C)   Architectural innovation
D)   Disruptive innovationE) A) and D)
F) B) and C)

Question 18

Explain architectural innovation with the help of a real world example.

Accepted Answer

Student answers may vary.
Firms can also...

Question 19

Explain some of the features of the introduction stage of the industry life cycle.

Accepted Answer

When an individual inventor or company l...

Question 20

In the U.S., the time period for the right to exclude others from the use of a patented technology is _____ from the filing date of a patent application.

Accepted Answer

A)   20 years
B)   25 months
C)   15 months
D)   25 yearsE) A) and D)
F) A) and C)

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

Correct Answer
verified

Explain the reasons for increasingly rapid technological diffusion and adoption.

Correct Answer
verified
One determinant is that initial innovati...
View Answer

Which of the conditions prevail when an industry is at the end of its life cycle?

Correct Answer
verified

Explain architectural innovation with the help of a real world example.

Correct Answer
verified
Student answers may vary.
Firms can also...
View Answer

Correct Answer
verified

What are the economic incentives associated with incumbent firms?

Correct Answer
verified
Once an innovator has become an establis...
View Answer

Why do incumbent firms favor incremental innovation over radical innovation?

Correct Answer
verified
Incumbent firms favor incremental innova...
View Answer

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and founded Amazon, which is now the world's largest online retailer.This is clearly an example of a(n) :

Correct Answer
verified

In the U.S., the time period for the right to exclude others from the use of a patented technology is _____ from the filing date of a patent application.

Correct Answer
verified

Which of the following statements accurately brings out the distinction between the introduction and growth stages of the industry life cycle?

Correct Answer
verified

What do you mean by a standard? How does it affect an industry?

Correct Answer
verified
A standard signals the market's agreemen...
View Answer

The customers entering the market in the growth stage are primarily _____.

Correct Answer
verified

Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?

Correct Answer
verified

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Correct Answer
verified

On which of the following tenets is the crossing-the-chasm framework, suggested by Geoffrey Moore, based?

Correct Answer
verified

Explain some of the features of the introduction stage of the industry life cycle.

Correct Answer
verified
When an individual inventor or company l...
View Answer

Correct Answer
verified

The strategic objective of a first mover during the introduction stage of the industry life cycle is to:

Correct Answer
verified

Who are technology enthusiasts?

Correct Answer
verified
The customer segment in the introductory...
View Answer

Correct Answer
verified

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

Correct AnswerverifiedShow Answer

Explain the reasons for increasingly rapid technological diffusion and adoption.

Correct AnswerverifiedOne determinant is that initial innovati...View AnswerShow Answer

Which of the conditions prevail when an industry is at the end of its life cycle?

Correct AnswerverifiedShow Answer

Explain architectural innovation with the help of a real world example.

Correct AnswerverifiedStudent answers may vary.Firms can also...View AnswerShow Answer

Correct AnswerverifiedShow Answer

What are the economic incentives associated with incumbent firms?

Correct AnswerverifiedOnce an innovator has become an establis...View AnswerShow Answer

Why do incumbent firms favor incremental innovation over radical innovation?

Correct AnswerverifiedIncumbent firms favor incremental innova...View AnswerShow Answer

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and founded Amazon, which is now the world's largest online retailer.This is clearly an example of a(n) :

Correct AnswerverifiedShow Answer

In the U.S., the time period for the right to exclude others from the use of a patented technology is _____ from the filing date of a patent application.

Correct AnswerverifiedShow Answer

Which of the following statements accurately brings out the distinction between the introduction and growth stages of the industry life cycle?

Correct AnswerverifiedShow Answer

What do you mean by a standard? How does it affect an industry?

Correct AnswerverifiedA standard signals the market's agreemen...View AnswerShow Answer

The customers entering the market in the growth stage are primarily _____.

Correct AnswerverifiedShow Answer

Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?

Correct AnswerverifiedShow Answer

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage?

Correct AnswerverifiedShow Answer

On which of the following tenets is the crossing-the-chasm framework, suggested by Geoffrey Moore, based?

Correct AnswerverifiedShow Answer

Explain some of the features of the introduction stage of the industry life cycle.

Correct AnswerverifiedWhen an individual inventor or company l...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The strategic objective of a first mover during the introduction stage of the industry life cycle is to:

Correct AnswerverifiedShow Answer

Who are technology enthusiasts?

Correct AnswerverifiedThe customer segment in the introductory...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
One determinant is that initial innovati...
View Answer

Correct Answer
verified

Correct Answer
verified
Student answers may vary.
Firms can also...
View Answer

Correct Answer
verified

Correct Answer
verified
Once an innovator has become an establis...
View Answer

Correct Answer
verified
Incumbent firms favor incremental innova...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A standard signals the market's agreemen...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When an individual inventor or company l...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The customer segment in the introductory...
View Answer

Correct Answer
verified