Question 1

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 C)
F) B) and C)

Question 2

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

Accepted Answer

A)   maturity stage
B)   growth stage
C)   shakeout stage
D)   introduction stageE) A) and D)
F) All of the above

Question 3

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

Accepted Answer

A)   Standards emerge exclusively from bottom-up through competition in the marketplace.
B)   As the size of a market expands, a standard signals the market's agreement on a common set of engineering features and design choices.
C)   Standards are exclusively imposed top-down by government or other standard-setting agencies such as the Institute of Electrical and Electronics Engineers.
D)   After a standard is established in an industry, the basis of competition tends to move away from process innovations toward product innovations.E) None of the above
F) C) and D)

Question 4

Dollar Shave Club is an ecommerce start-up that delivers razors by mail.By doing this,Dollar Shave Club is using a(n) _____ to disrupt an existing market.

Accepted Answer

A)   innovation ecosystem
B)   architectural innovation
C)   business model innovation
D)   incremental innovationE) B) and C)
F) A) and D) C

Question 5

EasyOpen Inc.has entered a stage in which the demand for their innovative electric can openers has declined.Now most customers are buying replacement parts or buying their second can opener from the firm.What stage in the industry life cycle does this scenario describe?

Accepted Answer

A)   growth stage
B)   maturity stage
C)   shakeout stage
D)   decline stageE) All of the above
F) B) and C)

Question 6

While the industry for 3-D televisions is in the introduction stage of the industry life cycle,the CRT (cathode ray tube) television industry is in its decline stage.Which of the following statements will be true in this scenario?

Accepted Answer

A)   The market size for 3-D televisions is extremely large, while the market size for CRT televisions is moderate.
B)   While product innovation will be at its maximum for the 3-D television industry, process innovation will be more crucial for the CRT television industry.
C)   The focus in the 3-D television industry will be on cost-leadership, whereas in the CRT television industry, the focus will be on differentiation.
D)   While the strategic objective of the CRT television industry will be achieving market acceptance, the strategic objective of the 3-D television industry will be pursuing a harvest strategy.E) B) and D)
F) A) and D)

Question 7

The crossing-the-chasm framework states that _____ need to be adjusted for each customer segment.

Accepted Answer

A)   incremental contributions
B)   business strategies
C)   innovations
D)   competitorsE) All of the above
F) C) and D)

Question 8

A _____ is best described as a form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea.

Accepted Answer

A)   patent
B)   promissory note
C)   franchise
D)   royaltyE) All of the above
F) None of the above A

Question 9

Which of the following statements is not true about innovation?

Accepted Answer

A)   Innovation as a competitive weapon can simultaneously create and destroy value.
B)   Successful innovation allows a firm to extract temporary monopoly profits.
C)   Innovation has to be high-tech in order to be a potent competitive weapon.
D)   Process innovations are made possible through advances such as the Internet.E) A) and D)
F) A) and C)

Question 10

Which of the following is an accurate definition of the customer segment "laggards"?

Accepted Answer

A)   the last consumer segment to come into the market, entering in the declining stage of the industry life cycle
B)   the last consumer segment to come into the market during the growth stage of the industry life cycle
C)   the last consumer segment to come into the market during the shakeout stage of the industry life cycle
D)   the last consumer segment to come into the market, entering in the maturity stage of the industry life cycleE) A) and C)
F) A) and B)

Question 11

In the decline stage,which of the following strategies involves a reduction of investments in product support?

Accepted Answer

A)   exit strategy
B)   harvest strategy
C)   maintain strategy
D)   consolidate strategyE) All of the above
F) B) and D)

Question 12

Which of the following would be the result of product innovation?

Accepted Answer

A)   a new system for shipping large packages
B)   an inexpensive, high-quality refrigerator
C)   an inexpensive method of producing bicycle wheels
D)   a new technology for Internet serversE) A) and D)
F) All of the above

Question 13

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

Accepted Answer

A)   There is rapid industry growth during this stage.
B)   Market demand in this stage primarily consists of first-time adopters.
C)   Competitive intensity within the industry increases.
D)   The mode of competition shifts from price to non-price in this stage.E) None of the above
F) A) and B)

Question 14

_____ is best described as the commercialization of any new product,process,or the modification and recombination of existing ones.

Accepted Answer

A)   Direct imitation
B)   Mass customization
C)   Innovation
D)   HeadhuntingE) B) and C)
F) C) and D)

Question 15

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.

Accepted Answer

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

Question 16

A few efficient and strong firms in the laptop industry have remained and emerged successful from the shakeout stage.Which of the following stages of the industry life cycle will they move to next?

Accepted Answer

A)   growth stage
B)   introduction stage
C)   maturity stage
D)   decline stageE) A) and B)
F) C) and D)

Question 17

While the industry for e-book readers is in its growth stage,the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?

Accepted Answer

A)   While firms in the e-book reader industry will focus on pursuing a harvest strategy, firms in the landline telephone industry will focus on product innovations.
B)   The e-book reader industry is at a more advanced stage than the landline industry of the industry life cycle.
C)   While firms in the e-book reader industry will attract customers categorized under late majority, firms in the landline telephone industry will attract the early majority customers.
D)   The number of competitors in the e-book reader industry will be larger when compared to the landline telephone industry.E) A) and B)
F) A) and D)

Question 18

Intel's Celeron chip and Atom chip are initiatives to

Accepted Answer

A)   introduce a new product in a new market to extend its leadership.
B)   guard the company against disruptive innovation by protecting the low end of the market.
C)   stall its own disruption strategies and wait for its rivals to introduce disruptive forces.
D)   target that section of the market that is not particularly price sensitive.E) A) and B)
F) A) and C)

Question 19

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) B) and C)
F) B) and D)

Question 20

The increasing availability of external options to commercialize ideas that were previously shelved is one of the factors that led to the shift from the

Accepted Answer

A)   maturity stage to the shakeout stage.
B)   shakeout stage to the maturity stage.
C)   open innovation to closed innovation.
D)   closed innovation to open innovation.E) C) and D)
F) B) and D) D

Exam 7: Business Strategy: Innovation and Entrepreneurship

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Dollar Shave Club is an ecommerce start-up that delivers razors by mail.By doing this,Dollar Shave Club is using a(n) _____ to disrupt an existing market.

Correct Answer
verified
C

EasyOpen Inc.has entered a stage in which the demand for their innovative electric can openers has declined.Now most customers are buying replacement parts or buying their second can opener from the firm.What stage in the industry life cycle does this scenario describe?

Correct Answer
verified

While the industry for 3-D televisions is in the introduction stage of the industry life cycle,the CRT (cathode ray tube) television industry is in its decline stage.Which of the following statements will be true in this scenario?

Correct Answer
verified

The crossing-the-chasm framework states that _____ need to be adjusted for each customer segment.

Correct Answer
verified

A _____ is best described as a form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea.

Correct Answer
verified
A

Which of the following statements is not true about innovation?

Correct Answer
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Which of the following is an accurate definition of the customer segment "laggards"?

Correct Answer
verified

In the decline stage,which of the following strategies involves a reduction of investments in product support?

Correct Answer
verified

Which of the following would be the result of product innovation?

Correct Answer
verified

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

Correct Answer
verified

_____ is best described as the commercialization of any new product,process,or the modification and recombination of existing ones.

Correct Answer
verified

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.

Correct Answer
verified

A few efficient and strong firms in the laptop industry have remained and emerged successful from the shakeout stage.Which of the following stages of the industry life cycle will they move to next?

Correct Answer
verified

While the industry for e-book readers is in its growth stage,the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?

Correct Answer
verified

Intel's Celeron chip and Atom chip are initiatives to

Correct Answer
verified

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

Correct Answer
verified

The increasing availability of external options to commercialize ideas that were previously shelved is one of the factors that led to the shift from the

Correct Answer
verified
D

Exam 7: Business Strategy: Innovation and Entrepreneurship

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Dollar Shave Club is an ecommerce start-up that delivers razors by mail.By doing this,Dollar Shave Club is using a(n) _____ to disrupt an existing market.

Correct AnswerverifiedC

EasyOpen Inc.has entered a stage in which the demand for their innovative electric can openers has declined.Now most customers are buying replacement parts or buying their second can opener from the firm.What stage in the industry life cycle does this scenario describe?

Correct AnswerverifiedShow Answer

While the industry for 3-D televisions is in the introduction stage of the industry life cycle,the CRT (cathode ray tube) television industry is in its decline stage.Which of the following statements will be true in this scenario?

Correct AnswerverifiedShow Answer

The crossing-the-chasm framework states that _____ need to be adjusted for each customer segment.

Correct AnswerverifiedShow Answer

A _____ is best described as a form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea.

Correct AnswerverifiedA

Which of the following statements is not true about innovation?

Correct AnswerverifiedShow Answer

Which of the following is an accurate definition of the customer segment "laggards"?

Correct AnswerverifiedShow Answer

In the decline stage,which of the following strategies involves a reduction of investments in product support?

Correct AnswerverifiedShow Answer

Which of the following would be the result of product innovation?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ is best described as the commercialization of any new product,process,or the modification and recombination of existing ones.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A few efficient and strong firms in the laptop industry have remained and emerged successful from the shakeout stage.Which of the following stages of the industry life cycle will they move to next?

Correct AnswerverifiedShow Answer

While the industry for e-book readers is in its growth stage,the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?

Correct AnswerverifiedShow Answer

Intel's Celeron chip and Atom chip are initiatives to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The increasing availability of external options to commercialize ideas that were previously shelved is one of the factors that led to the shift from the

Correct AnswerverifiedD

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C

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A

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D