Ch7 Test Bank Business Strategy and Platforms

Student name:__________

Product innovation is more strategically important than process innovation while a firm is in the growth stage of the industry life cycle.
1. ______

true
false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Innovation and the Industry Life Cycle
Source : Chapter 07 Test Bank > TF Qu. 01 Product innovation is more strategically...

Platform business models are not organized as traditional linear pipeline business models.
1. ______

true
false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-06 Explain why and how platform businesses can outperform pipeline businesses
Topic : Platform Strategy
Source : Chapter 07 Test Bank > TF Qu. 02 Platform business models are not...

The pace of innovation has slowed in the 21st century.
1. ______

true
false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > TF Qu. 03 The pace of innovation has slowed in...

The best way for a firm to keep its proprietary technologies, recipes, or formulas secret is to obtain a patent.
1. ______

true
false

For ideas and inventions to be innovative, they must avoid being commercialized.
1. ______

true
false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > TF Qu. 05 For ideas and inventions to be innovative...

Innovation and strategic entrepreneurship can only occur within new businesses.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-02 Apply strategic management concepts to entrepreneurship and innovation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > TF Qu. 06 Innovation and strategic entrepreneurship...

Social entrepreneurs evaluate the performance of their ventures by ecological and social contribution.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 3 Hard
Learning Objective : 07-02 Apply strategic management concepts to entrepreneurship and innovation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > TF Qu. 07 Social entrepreneurs evaluate the performance...

During the shakeout stage of the industry life cycle, the importance of process innovation further increases while the importance of product innovation further declines.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > TF Qu. 08 During the shakeout stage of the industry...

According to the crossing-the-chasm framework, the biggest chasm between customer segments is between early adopters and the mass market made up of the early majority and the late majority.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-04 Derive strategic implications of the crossing-the-chasm framework.
Topic : Strategic Implications of Crossing-the-Chasm
Source : Chapter 07 Test Bank > TF Qu. 09 According to the crossing-the-chasm framework...

Innovation that targets new markets with existing technologies is known as disruptive innovation.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > TF Qu. 10 Innovation that targets new markets with...

Platform businesses are typically better than pipeline businesses at incorporating user feedback and taking advantage of network effects.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-06 Explain why and how platform businesses can outperform pipeline businesses
Topic : Effect of Technology on Industry Structure and Competition
Source : Chapter 07 Test Bank > TF Qu. 11 Platform businesses are typically better...

Network effects always lead to a virtuous cycle in which an increasing number of customers improves the quality of a product or service, thereby attracting more customers and continuing the cycle.
1. ______

true
false

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-06 Explain why and how platform businesses can outperform pipeline businesses
Topic : Effect of Technology on Industry Structure and Competition
Source : Chapter 07 Test Bank > TF Qu. 12 Network effects always lead to a virtuous...

Mateo is the owner of Auto-Garage Opener Inc. and has recently modified his firm’s strategic objective based on a shift in his industry. Mateo is responding to a(n)________ life cycle.
1. ______

entrepreneurial

economic

growth

industry

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Innovation and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 13 Mateo is the owner of Auto-Garage Opener...

The type of customers vital to a firm introducing a new innovation are the________, who are willing to buy early into new technology or product concept.
1. ______

laggards

early majority

early adopters

late majority

Which of the following is not an advantage when it comes to “first-mover advantages”?
1. ______

First movers may be able to lock in key suppliers.

First movers may benefit from network effects.

First movers must educate potential customers about the product.

First movers may hold important intellectual property such as critical patents.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 15 Which of the following is not an advantage...

After social networking websites were introduced, their value increased exponentially as the number of users increased. This is the positive effect of a(n)
1. ______

network effect.

confirmation effect.

impression management effect.

user effect.

Which of the following describes the group of customers referred to as the early majority?
1. ______

They come into the market during the shakeout stage.

They are the last to come into the market.

They enter the market during the maturity stage.

They enter the market during the growth stage.

Generally, as the level of________ innovation declines, the level of________ innovation increases.
1. ______

process; product

product; process

process; incremental

product; radical

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Innovation and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 18 Generally, as the level of ________ innovation...

Which of the following is true about the decline stage of an industry life cycle?
1. ______

Product and process innovation efforts end.

Market growth is at its highest.

Market size is at its smallest.

Product innovation ends, but process innovation continues.

When a firm uses the tools and concepts learned from strategic management in order to achieve competitive advantage by pursuing innovation, it is said to be engaging in
1. ______

a short-term strategy.

strategic invention.

a strategic venture.

strategic entrepreneurship.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-02 Apply strategic management concepts to entrepreneurship and innovation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 20 When a firm uses the tools and concepts...

The vast majority of innovations in an industry are________, because they build on a firm’s established knowledge base and steadily improve an existing product or service offering.
1. ______

disruptive

architectural

radical

incremental

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Innovation
Source : Chapter 07 Test Bank > MC Qu. 21 The vast majority of innovations in an...

A radical innovation leverages________ markets, while incremental innovations are based on________ markets.
1. ______

new; existing

existing; novel

drastic; new

required; established

Digital photography replacing film photography is an example of which type of innovation?
1. ______

incremental

architectural

radical

disruptive

Lauren is the CEO of TimeEx Inc. and is competing in an industry that is shifting due to disruptive innovation. Which of the following strategies should she consider to most appropriately respond to this disruptive innovation?
1. ______

Lauren should guard against the disruptive innovation by protecting the low end of the market.

Lauren should stop allocating her firm’s resources toward continually trying to innovate.

Lauren should exit the industry before her firm files for bankruptcy.

Lauren should focus on procuring the “laggards” in her industry.

Incumbent firms prefer to focus on incremental innovations, which reinforce their established organizational structure and power distribution and avoid radical innovation that could disrupt their existing balance of power. This is known as
1. ______

organizational inertia.

organization culture.

organizational design.

organization complexity.

Uber has become one of the largest transportation companies in the world, valued at more than $100 billion in 2021, without owning a single car. Uber is an example of a
1. ______

pipeline business.

platform business.

strategic business unit.

a typical value chain driven business.

Which of the following below is considered an advantage of using a platform business model?
1. ______

Platforms scale efficiently by implementing gatekeepers.

Platforms work within an existing industry based on physical assets.

Platforms benefit from a traditional system of horizontal business organization.

Platforms unlock new sources of value creation and supply.

Amina wants to create a networking site that would connect local artists to homeowners who are looking for unique and original art. She knows that network effects will play a big role in her success and doesn’t want to build her business using a linear value chain. Amina would best be served by employing a(n)
1. ______

pipeline business model.

innovative social networking website.

razor-razor blade business model.

platform business model.

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?
1. ______

Netflix moved from content development to upgrading its data analytics to provide faster online streaming.

Netflix applied big data analytics to its user preferences to provide highly personalized viewing recommendations.

Netflix moved from online streaming to online DVD rentals via the Internet.

Netflix applied first-mover advantages to lock up talent needed to produce original content for DVD rentals and online streaming.

The typical four-step innovation process begins with
1. ______

the modification and recombination of an existing product or process.

the presentation of an idea as findings derived from basic research.

the commercialization of an invention by entrepreneurs.

a competitor’s attempt to imitate an innovation.

What is an invention?
1. ______

the transformation of an idea into a new product or process

a unique idea that has not been thought of before

the transformation of an idea into a successful product

a unique idea that has been patented

When Monopar Therapeutics 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 Monopar Therapeutics’ intellectual property rights. Thus, the drug is protected by a
1. ______

promissory bill.

patent.

franchise.

royalty.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 32 When Monopar Therapeutics released a new...

In the United States, 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.
1. ______

20 years

25 months

15 months

25 years

As a research scholar, Danna researched and developed her idea of solar roof shingles. Realizing the potential use of this product in both residential and commercial building development, she started a new venture where she could customize these shingles to fit the specific needs of the buyers and sell them. Danna can be best described as a(n)
1. ______

entrepreneur.

category captain.

franchisor.

early adopter.

Monopar Therapeutics at McKesson implemented an open-innovation model, which greatly benefited the company. Knowing this information, we can conclude that Monopar Therapeutics is a(n)
1. ______

venture capitalist.

category captain.

intrapreneur.

early adopter.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 1 Easy
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 35 Monopar Therapeutics at McKesson implemented...

How has Apple been able to sustain its competitive advantage in the smartphone industry?
1. ______

by reducing its network effects

by targeting its new products and services toward laggards

by driving the price for the end user to zero

by regularly introducing incremental improvements in its products

Which of the following is a competitive benefit experienced by the first-mover firm in an industry?
1. ______

The first mover will be able to achieve a less steep learning curve.

The first mover will be able to reduce the switching costs.

The first mover will not have to patent its products or technology.

The first mover will be able to reduce costs through economies of scale.

Imitation is the________ step in the innovation process.
1. ______

first

second

third

fourth

BellRing Brands is a manufacturer of educational toys for children. Six months ago, the company’s research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. Three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. What should the managers of BellRing Brands prepare for next?
1. ______

increased competition from imitators

a prolonged period of uncontested success

a sharp decline in demand for the product

a difficult struggle to move from invention to innovation

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 39 BellRing Brands is a manufacturer of educational...

As the inventor of hypertension medication, BioNTech SE 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 BioNTech SE’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?
1. ______

first-mover advantages

social benefits

network externalities

fringe benefits

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 40 As the inventor of hypertension medication...

Prisha is the founder of the baby product manufacturer True Blue and Pink. She ensures that the products offered by her company are manufactured with ethically and responsibly sourced materials. Most products are therefore 100 percent organic, and all packaging is manufactured from recycled material. Also, her company sources materials from other companies within 100 miles of her manufacturing plant. Prisha’s belief is that her company should be able to support the community at large. Which of the following terms best describes Prisha?
1. ______

headhunter

category captain

social entrepreneur

trade creditor

Which of the following scenarios would be characteristic of an entrepreneur?
1. ______

John implemented a new and more efficient way to produce pottery.

Kaia imitated a new, more efficient method of producing pottery.

Hugo scaled back the production of pottery because it wasn’t cost effective.

Juana used a proven marketing method to advertise her pottery.

Which of the following is an example of social entrepreneurship? The committee approved the new formula for an all-purpose cleaner because it
1. ______

cleaned better than other cleaners and used easy-to-obtain ingredients.

cleaned better than other cleaners and did not cost more to produce.

cleaned as well as other cleaners and could be produced more efficiently.

cleaned as well as other cleaners and used organic ingredients.

Feran is the founder of an innovative “impromptu catering” business that provides elegant, healthy party food and decorations on less than 24 hours’ notice. The company has grown by over 150 percent in the past year. Feran credits some of the company’s success to studying the strategies of prominent social entrepreneurs, such as Wikipedia’s Jimmy Wales. What can Feran do to exemplify the social entrepreneurship model?
1. ______

Launch a social media platform for food lovers.

Provide free weekly catered meals for the unhoused.

Seek investments from venture capitalists.

Buy out his closest competitors to ensure a competitive advantage.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-02 Apply strategic management concepts to entrepreneurship and innovation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 44 Feran is the founder of an innovative “impromptu...

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

pursue a harvest strategy.

survive by drawing on deep pockets.

achieve market acceptance.

lower entry barriers.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 45 The strategic objective of a first mover during...

Which of the following lists the stages of the industry life cycle in the correct order?
1. ______

introduction, growth, shakeout, maturity, and decline

introduction, shakeout, growth, maturity, and decline

introduction, growth, maturity, shakeout, and decline

introduction, shakeout, maturity, growth, and decline

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 46 Which of the following lists the stages...

A new product often has a high price when it is launched because of a
1. ______

large investment in designing a product while producing small quantities.

large investment in marketing a product while producing small quantities.

large investment in designing a product while producing large quantities.

large investment in marketing a product while producing large quantities.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 47 A new product often has a high price...

UShredIt! has entered a stage in which the demand for their innovative document shredding machines has declined. Now most customers are buying replacement parts or buying their second shredding machine from the firm. What stage in the industry life cycle does this scenario describe?
1. ______

growth stage

maturity stage

shakeout stage

decline stage

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 48 UShredIt! has entered a stage in which...

Which of the following describes a firm pursuing a harvest strategy?
1. ______

The firm exits the industry by bankruptcy, liquidation, or divestments.

The firm reduces investments in product support and allocates only a minimum of human and other resources.

The firm continues to support marketing efforts at a given level despite the fact that consumption for its product has been declining.

The firm buys out industry rivals to stake out a strong position.

Assume that the market for print book publishing has entered the maturity stage. Which of the following would most likely exist during this stage?
1. ______

a few start-up publishers

many small to midsized publishers

a few large publishers

one large publisher

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 50 Assume that the market for print book...

The leading producer of cell phone backup batteries, Progyny, has achieved great success because it produces high-quality battery backups that are not too expensive. Even so, another company that produces lower-quality batteries at the same price has also achieved some success, but not as much as Progyny. Also, in general, the price of backup batteries has declined because of economies of scale and learning. In addition, Progyny has added complementary assets, such as a carrying case. Considering all of these factors, the backup battery industry is most likely in the________ stage.
1. ______

introduction

growth

shakeout

maturity

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 51 The leading producer of cell phone backup...

In the context of industrial growth, which of the following statements is true of standards?
1. ______

Standards emerge exclusively from the bottom up through competition in the marketplace.

As the size of a market expands, a standard signals the market’s agreement on a common set of engineering features and design choices.

Standards are exclusively imposed top down by government or other standard-setting agencies such as the Institute of Electrical and Electronics Engineers.

After a standard is established in an industry, the basis of competition tends to move away from process innovations toward product innovations.

In which of the following stages of the industry life cycle is a standard first established?
1. ______

maturity stage

growth stage

shakeout stage

introduction stage

Which of the following is a feature of the growth stage of the industry life cycle?
1. ______

The consumer demand increases.

The prices of goods begin to rise.

The basis of competition moves away from process innovation.

The number of competitors decreases.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 1 Easy
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 54 Which of the following is a feature...

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. In the context of this scenario, which of the following statements is true?
1. ______

The industry for cell phones with holographic keyboards will face greater competition than the tablet industry.

While the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation.

While the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits.

The industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be nonprice.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 55 While cell phones with holographic keyboards...

Which of the following statements accurately describes the distinction between the introduction and growth stages of the industry life cycle?
1. ______

There is more strategic variety in the growth stage when compared to the introduction stage.

The number of competitors is more in the introduction stage than the growth stage.

The market size for a new product or service is larger in the introduction stage when compared to the growth stage.

While achieving market acceptance is the strategic objective during the introduction stage, the objective in the growth stage is to pursue a harvest strategy.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 56 Which of the following statements accurately...

The key objective for firms during the________ phase is to stake out a strong strategic position not easily imitated by rivals.
1. ______

introduction

growth

shakeout

maturity

Which of the following is a feature of the shakeout phase of the industry life cycle?
1. ______

Standards begin to emerge in the industry.

Market demand in this stage primarily consists of first-time adopters.

Firms begin to compete directly against each other.

The mode of competition shifts from price to nonprice in this stage.

To be successful and to survive the shakeout stage of the industry life cycle, a firm should
1. ______

charge higher prices than its competitors.

focus on product innovation rather than process innovation.

gain economies of scale.

shift from price to nonprice competition.

In developed economies, the electric car industry is in the introduction stage, and the industry for MP3 players is in the shakeout phase. What does this imply?
1. ______

The mode of competition in the electric car industry will be based on price, whereas in the MP3 player industry, the mode of competition will be nonprice-based.

The industry for electric cars will focus more on product innovation, whereas in the MP3 player industry, the focus will be on process innovation.

The electric car industry will move to the growth stage, whereas the industry for MP3 players will enter the growth stage next.

The industry for electric cars will primarily pursue an integration strategy, whereas in the MP3 players industry, the focus will be on differentiation.

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

The barriers to entry increase during this stage.

The firms in the industry yield the highest profits during this phase.

Rivalry among competitors decreases in this stage.

The weaker firms are forced out of the industry in this stage.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 61 Why is the phase after the growth stage...

Peloton Interactive is a manufacturer of high-definition televisions. The industry has gone through a period of rapid growth and expansion and has started to experience a decline in the rate of growth. Several smaller firms have been bought out by larger competitors, and competition for market share is intensifying. Which of the following strategies is most likely to give Peloton Interactive a competitive advantage?
1. ______

Implement process innovations that lower per-unit costs.

Introduce product innovations that differentiate Peloton televisions from the competition.

Imitate the features of the highest-selling television on the market.

Increase spending on marketing and attempt to acquire a high-profile celebrity spokesperson.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 62 Peloton Interactive is a manufacturer of high...

The market reaching its maximum size is a feature of the________ stage of the industry life cycle.
1. ______

growth

shakeout

maturity

decline

While the domestic airline industry is in the maturity stage of the industry life cycle, the internet-enabled appliance industry is in its growth stage. Which of the following can be inferred from the given data?
1. ______

The number of competitors will be greater in the domestic airline industry than the internet-enabled appliance industry.

The internet-enabled appliance industry is ahead of the domestic airline industry in the industry life cycle.

While the domestic airline industry is mostly free from excess capacity, the internet-enabled appliance industry will have new entrants.

The mode of competition will be price based in the internet-enabled appliance industry and will be nonprice based in the domestic airline industry.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 64 While the domestic airline industry is in the...

Which of the following conditions prevail when an industry is at the end of its life cycle?
1. ______

Innovation efforts along both product and process dimensions cease.

The industry structure is perfectly competitive with a large number of buyers and sellers.

The strategic objectives of businesses will involve gaining market acceptance.

The size of the market contracts further as demand increases.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 65 Which of the following conditions...

The demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. Also, the current buyers of flip phones are mainly categorized under laggards. Which of the following stages of the industry life cycle is the flip phone industry in currently?
1. ______

growth stage

maturity stage

decline stage

commercialization stage

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 66 The demand for flip phones has drastically...

Although Dynatrace Holdings still sells its DVD players, a product in its decline stage, the investments made by the company on improving or marketing the product are very low. The company has allocated the least amount of human and financial capital to this department. Which of the following strategies has Dynatrace Holdings adopted in this scenario?
1. ______

harvest strategy

maintain strategy

consolidation strategy

differentiation strategy

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 67 Although Dynatrace Holdings still sells...

When the market for standalone Global Positioning System (GPS) devices declined with the arrival of GPS-enabled mobile phones, InMode Ltd., a manufacturer of GPS devices, bought out most of its rivals that were planning to exit. This allowed the company to get rid of all the excess capacity and acquire a monopolistic market power in the declining industry. Which of the following strategies has InMode Ltd. adopted in this scenario?
1. ______

harvest strategy

maintain strategy

consolidation strategy

differentiation strategy

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > MC Qu. 68 When the market for standalone Global...

When a firm pursues a(n)________ strategy, it continues to support marketing efforts even if the demand for the product is declining.
1. ______

exit

consolidate

maintain

harvest

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

The number and size of competitors remain constant throughout the industry life cycle.

Each stage of the industry life cycle is dominated by a different customer group.

Industries tend to follow an unpredictable industry life cycle.

The supply and demand sides of the market remain constant irrespective of the phase of the industry life cycle.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-04 Derive strategic implications of the crossing-the-chasm framework.
Topic : Strategic Implications of Crossing-the-Chasm
Source : Chapter 07 Test Bank > MC Qu. 70 On which of the following tenets is the...

Which of the following customer segments as described in the chasm framework make up the mass market?
1. ______

the early and late majority together

the early adopters alone

the technology enthusiasts and laggards together

the technology enthusiasts alone

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-04 Derive strategic implications of the crossing-the-chasm framework.
Topic : Strategic Implications of Crossing-the-Chasm
Source : Chapter 07 Test Bank > MC Qu. 71 Which of the following customer...

Early adopters typically enter the market during the________ stage.
1. ______

introduction

growth

shakeout

maturity

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?
1. ______

While the customer segment in the introduction stage consists of early adopters, the customers entering the market in the growth stage are technology enthusiasts.

Unlike technology enthusiasts, early adopters’ demand is fueled more by intuition and vision rather than technology concerns.

While early adopters make up the smallest market segment, technology enthusiasts make up the mass market.

Firms need to communicate products’ potential applications in a more direct way when attracting technology enthusiasts rather than early adopters.

Which of the following statements is true of the early majority section of consumers?
1. ______

They come into the market during the introduction stage.

They are unaware that many hyped new product introductions will fade away.

They weigh the benefits and costs carefully when adopting a new product.

They make up the smallest market segment.

It is important for a firm to win over the early majority section of the market to ensure the commercial success of an innovation because they
1. ______

are driven by technology concerns rather than the practicality of a new product.

influence the purchase decisions of early adopters.

enter into the market in large numbers, creating a herding effect.

have the highest purchasing power when compared to the other customer segments.

When does a firm fall into the large competitive chasm between early adopters and early majority?
1. ______

when it cannot attract technological enthusiasts to try the beta versions of its products

when it creates strong network effects during the growth stage

when it fails to successfully launch a mass-market version of its product

when the early majority create herding effects for its products

At the time when Farrah decided to purchase a GPS system for her car, the product had just become accessible to the mass market. She did not purchase the GPS until after she was convinced that the benefits it would offer her would far exceed its price. Also, she waited for her friends to try the product and prominent magazines and websites such as Consumer Reports to endorse it. Which of the following customer segments does Farrah best represent?
1. ______

laggards

technology enthusiasts

early adopters

early majority

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 07-04 Derive strategic implications of the crossing-the-chasm framework.
Topic : Strategic Implications of Crossing-the-Chasm
Source : Chapter 07 Test Bank > MC Qu. 77 At the time when Farrah decided to purchase...

Jimmy prefers to buy from well-established brands rather than unknown new ventures. Which customer segment does he fall under?
1. ______

technology enthusiast

early adopter

early majority

late majority

Afya Limited is a new firm that entered the smartwatch industry during the growth stage of the industry life cycle. It managed to become one of the top-three smartwatch manufacturers during the shakeout stage due to its low-cost structure. What features should Afya Limited emphasize in its product marketing to ensure it successfully crosses the chasm into the maturity stage?
1. ______

advanced capabilities

the company’s outsider status

sleek and trendy design

ease of use

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-04 Derive strategic implications of the crossing-the-chasm framework.
Topic : Strategic Implications of Crossing-the-Chasm
Source : Chapter 07 Test Bank > MC Qu. 79 Afya Limited is a new firm that entered...

While the personal computer industry is flooded and growing with laptops and tablets, Javier recently bought a desktop, his first personal computer. He realized that a computer at home would be helpful for his children for their school projects, and he could use it to maintain the simple accounts of his plumbing business. Which of the following customer segments does Javier best represent?
1. ______

early adopters

category captains

laggards

early majority

Which of the following is a drawback of using the industry life cycle as a framework to guide strategic choice?
1. ______

The framework believes that the life cycle of industries is unpredictable.

The framework does not explain everything about changes in industries.

The framework is based on the tenet that industries can be rejuvenated even in the declining stage.

The framework believes that the number and size of competitors remain constant throughout the life cycle.

Bellissima Beauty is a cosmetics manufacturer. It has released an improved version of its wrinkle-reducing night cream in markets in which the company already operates. Which of the following types of innovations does this scenario best illustrate?
1. ______

radical innovation

incremental innovation

architectural innovation

disruptive innovation

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 82 Bellissima Beauty is a cosmetics manufacturer...

In a radical innovation, a firm targets
1. ______

existing markets by using new technologies.

new markets by using existing technologies.

new markets by using new technologies.

existing markets by using existing technologies.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 83 In a radical innovation, a firm targets

Which of the following describes organizational inertia?
1. ______

when the market leader captures almost all of the market share

a network of suppliers, buyers, and complementors

a firm’s resistance to changes in the status quo

an innovation that leverages new technologies to attack existing markets from the bottom up

Incumbent firms favor incremental innovation over radical innovation because
1. ______

their business decisions are independent of the other parties in their innovation ecosystem.

radical innovation will disturb the existing power distribution within the firms.

incumbent firms do not have formal organizational structures and processes like the way new entrants do.

incremental innovations help firms sustain a permanent competitive advantage, whereas radical innovations only help gain a temporary advantage.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 85 Incumbent firms favor incremental innovation...

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?
1. ______

Unlike incumbent firms, new entrants do not have to initially face the high entry barriers.

New entrants are embedded in an innovation ecosystem, while incumbent firms are not.

Unlike incumbent firms, new entrants do not have formal organizational structures and processes.

Incumbent firms do not have the advantages of network effects that new entrants have.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 86 Why is it easier for new entrants to get...

Which of the following describes an architectural innovation?
1. ______

an innovation that leverages new technologies to attack existing markets from the bottom up

an innovation that was developed for emerging economies before being introduced in developed economies

a new product in which known components, based on existing technologies, are reconfigured in a novel way to create new markets

an innovation that draws on novel methods or materials, is derived either from an entirely different knowledge base, comes from a recombination of existing knowledge bases with a new stream of knowledge

Adaptive Biotechnologies 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?
1. ______

disruptive innovation

incremental innovation

radical innovation

architectural innovation

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 88 Adaptive Biotechnologies Inc. is a...

A(n)________ leverages new technologies to attack existing markets.
1. ______

disruptive innovation

incremental innovation

radical innovation

architectural innovation

As a startup company, Lumiere Industries entered the low end of the highly competitive smart television industry with its low-cost televisions. 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 smart TVs in the high-end segment and claim a premium price. Which of the following types of innovation does this scenario best illustrate?
1. ______

radical innovation

incremental innovation

architectural innovation

disruptive innovation

When Japanese carmakers entered the existing U.S. automobile market by first offering small fuel-efficient cars and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in
1. ______

regressive innovation.

radical innovation.

disruptive innovation.

architectural innovation.

Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)
1. ______

regressive innovation.

radical innovation.

architectural innovation.

disruptive innovation.

Which of the following businesses is most likely to disrupt an existing industry?
1. ______

Black Rock developed an earphone that receives emails and text messages and converts them to voice messages. The first models had poor reception, but they rapidly improved over time.

Touch Tech Inc. reconfigured the components used in its touchscreen tablets to create a new type of wearable device for use in restaurants and other service industries.

Stark and Son’s developed a teleportation technology that can transport physical materials instantaneously across great distances.

GSX Techedu added advanced camera technology to its premium line of smartphones so that they would take the highest-quality photos of all phones on the market.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 3 Hard
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 93 Which of the following businesses is...

A factor favoring the success of disruptive innovation is that
1. ______

incumbent firms often are slow to change.

new entrants have highly formal organizational structures and processes.

the low end of the market is highly guarded.

incumbent firms focus on radical innovation rather than incremental innovation.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 94 A factor favoring the success of disruptive...

Which of the following is a strategy of incumbent firms to counter disruptive innovations?
1. ______

Invest all of the firm’s time and resources into its top product or service.

Protect the low end of the market.

Stall its own disruption strategies and wait for its rivals to introduce disruptive forces.

Target a section of the market that is not particularly price sensitive.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 95 Which of the following is a strategy of...

Which of the following most accurately describes a difference between incremental innovation and radical innovation?
1. ______

Incremental innovation researches new materials; radical innovation researches new processes.

Incremental innovation targets new markets and technologies; radical innovation reinvents markets and technologies.

Incremental innovation builds on an established knowledge base; radical innovation uses an entirely different knowledge base.

Incremental innovation draws on novel methods; radical innovation draws on proven methods.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 96 Which of the following most accurately...

Xerox long dominated the high-end copier industry, but Canon captured the small and medium-sized businesses by redesigning the copying machine so that it did not need professional service—reliability was built directly into the machine, and the user could replace parts, such as the cartridge. What Xerox had not envisioned was the possibility that the components of the copying machine could be put together in an altogether different way that was more user friendly. This example describes
1. ______

architectural innovation.

incremental innovation.

radical innovation.

disruptive innovation.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 97 Xerox long dominated the high-end copier...

Bright PAD introduced a tablet that could run completely on solar energy and was less expensive than competitors’ tablets. On the downside, it required more frequent charging than the competition’s tablets. However, the technology of the Bright PAD tablet improved rapidly, thereby improving its recharge frequency. This example describes________ innovation.
1. ______

architectural

incremental

radical

disruptive

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > MC Qu. 98 Bright PAD introduced a tablet that could...

Which of the following scenarios best exemplifies a platform business?
1. ______

Ayesha purchases electronic parts from a variety of vendors and assembles them into inexpensive drones that she sells to consumers.

Samantha operates an industrial test kitchen in which local growers bring their produce to local chefs, who use the kitchen to try new recipes and determine which produce to buy.

Leo operates a consulting firm in which businesses hire him to assess deficiencies in their organizational culture.

Tereza founded a bike-based transportation company that offers environmentally friendly rides to customers within a 25-mile radius.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 07-06 Explain why and how platform businesses can outperform pipeline businesses
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > MC Qu. 99 Which of the following scenarios best...

Which of the following business models in the landscaping industry is likely to scale most efficiently?
1. ______

a company that offers three different bundles of services at a low, medium, and high price point depending on the level of care required by the customer

a company that deploys a team of both skilled and unskilled landscapers to each customer’s location regardless of their needs

a company that charges the same hourly rate for landscaping services no matter what the situation requires

a company that allows users of its website to schedule appointments with landscapers who specialize in the exact service required

Revolve Group is a mobile platform that matches independent fashion designers with consumers who want a personalized wardrobe. Which of the following initiatives would best allow Revolve Group to fine-tune its offerings to better meet the needs of its consumers?
1. ______

allowing users to provide feedback to producers on the style and fit of clothing

conducting anonymous phone surveys about consumers’ fashion preferences

hiring an outside consultant to evaluate the offerings of Revolve Group’s producers

studying the financial records of various fashion design companies to determine trends

Which of the following businesses is most susceptible to negative network effects?
1. ______

Lite Shoes produces a line of lightweight running shoes that are endorsed by an Olympic gold medalist.

Chips & Boards Technologies produces computer processing chips and sells them to a variety of manufacturers for use in smartphones and other devices.

ECO Tools manufactures solar powered gardening implements and sells them online.

Rite Pics is a social media platform where users upload photos to the site and are matched with other users who have taken similar photos.

Explain the reasons for increasingly rapid technological diffusion and adoption.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-01 Outline the four-step innovation process from idea to imitation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > SA Qu. 103 Explain the reasons for increasingly...

What are the competitive benefits that first movers in an industry experience?

Briefly discuss the steps in the innovation process.

Define entrepreneurship. Provide one example of a successful entrepreneur and include the product or service for which they are known.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-02 Apply strategic management concepts to entrepreneurship and innovation.
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > SA Qu. 106 Define entrepreneurship. Provide one example...

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

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > SA Qu. 107 Explain some of the features of the...

How is process innovation different from product innovation?

In the decline stage, innovation efforts along both product and process dimensions cease. Elaborate.

Why do firms have more strategic variety in the growth stage of the industry life cycle?

What happens during the shakeout stage of the industry life cycle?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > SA Qu. 111 What happens during the shakeout...

Briefly discuss the four strategic options firms have during the decline stage of the industry life cycle.

Briefly discuss the strategic implications of the crossing-the-chasm framework.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-04 Derive strategic implications of the crossing-the-chasm framework.
Topic : Strategic Implications of Crossing-the-Chasm
Source : Chapter 07 Test Bank > SA Qu. 113 Briefly discuss the strategic implications...

Discuss the drawbacks of the industry life cycle.

Why do incumbent firms favor incremental innovation over radical innovation?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Strategies for Innovation
Source : Chapter 07 Test Bank > SA Qu. 115 Why do incumbent firms favor incremental...

Discuss the differences between pipeline businesses and platform businesses in terms of the value chain.

Describe network effects and their potential to help or hurt a platform business.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 07-06 Explain why and how platform businesses can outperform pipeline businesses
Topic : Entrepreneurship and Innovation
Source : Chapter 07 Test Bank > SA Qu. 117 Describe network effects and their potential...

Identify the first stage in a typical industry life cycle and explain why early adopters are attracted to this stage.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Innovation and the Industry Life Cycle
Source : Chapter 07 Test Bank > SA Qu. 118 Identify the first stage in a typical industry...

There are four types of innovation in the markets and technologies framework. Which of the four types is the most common? Why is it the most common<p aria-hidden="true"></p>

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 07-05 Categorize different types of innovations in the markets-and-technology fr
Topic : Innovation
Source : Chapter 07 Test Bank > SA Qu. 119 There are four types of innovation in the...

When a firm is in the decline phase of an industry life cycle, it has four strategic options. Describe a harvest strategy and provide an example.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 07-03 Describe the competitive implications of different stages in the industry
Topic : Competitive Implications and the Industry Life Cycle
Source : Chapter 07 Test Bank > SA Qu. 120 When a firm is in the decline phase...

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Chapter 7 Business Strategy and Platforms

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