Test Questions & Answers Innovative Strategies Chapter.5

Technology Ventures (Byers), 5e

Chapter 5 Innovative Strategies

1) A firm is said to have the first-mover advantage if they are the first to cross the chasm.

2) Mature Industries undergo frequent context changes.

3) Emergent Markets have:

A) Usually slow revenue growth

B) High competitiveness

C) No established industry rules

D) Moderate uncertainty

4) Which of the following would not make you a first mover?

A) Taking organizational capabilities from similar firms

B) Being in the right place at the right time

C) Having a head start on the experience curve

D) Starting early on important industry relationships

5) Which of the following is not a benefit of being a follower as opposed to a first mover?

A) Followers benefit from additional time to commercialize new products

B) Followers preserve their resources for the right opportunity

C) You have a low-cost advantage by being ahead of the curve

D) You can witness mistakes from similar firms in strategy and execution

6) A possible disadvantage of being a first-mover is:

A) Lower development costs

B) Short-lived advantages as competition arises

C) Over-willing customers

D) Certainty in designing a product

7) Before the period of opportunity, both first movers and followers are engaged in:

A) Low competition

B) Venture financing

C) An innovation period

D) High cash flow

8) What percent of inventions developed by independent inventors reach a market?

A) 2 percent

B) 6 percent

C) 9 percent

D) 20 percent

9) The competition cycle for market share is:

A) Market Share -> Innovations -> Value to Customers -> Demand -> Sales

B) Market Share -> Value to Customers -> Demand -> Innovations -> Sales

C) Market Share -> Value to Customers -> Innovations -> Sales -> Demand

D) Market Share -> Sales -> Demand -> Value to Customers -> Innovations

10) Radicalness measures the degree to which an invention differs from previous inventions in the field.

11) Characteristics of an invention do not include:

A) Importance

B) Radicalness

C) Breadth

D) Opportunity

12) What question, as depicted in figure 5.4, is on the way from a new invention to a new firm?

A) Will this new invention be exploited as a new venture led by a team?

B) What is the availability of resources that previous ventures required?

C) What new technical knowledge does my team have?

D) Can my team work together?

13) The extent of the value of a radical invention is known only to its inventor.

14) Radical products often initially perform unfavorably along some dimensions of performance.

15) In figure 5.5, about how far into the lifespan of the innovation does it reach the mainstream market?

A) 5 percent

B) 30 percent

C) 50 percent

D) 70 percent

16) The following are all listed as elements of an attractive innovation strategy except:

A) Well-defined customer

B) Core competencies required to exploit new technology

C) Opportunity to take advantage of resources

D) High benefit-to-price ratio for customers

17) Which of the following are factors of technology innovation?

A) Feasibility

B) Industry Analysis

C) Performance

D) Manufacturability

18) The invention of the electric refrigerator began with:

A) A differentiation strategy

B) Distinctive competencies

C) Societal need

D) The technology

19) Google's success is a demonstration of the "Power of Free."

20) Alphabet can fund ________ thanks to ________.

A) moonshot companies; revenue from search and ads

B) continual innovation; initial focus on Internet search

C) superb performance; other hardware

D) search engines; corporate restructuring