Question 1

Which of the following will NOT help an established company in addressing the potential challenge of a disruptive technology?

Accepted Answer

A)   Access to knowledge about how disruptive technologies can revolutionize markets
B)   Investing in newly emerging technologies that may ultimately become disruptive technologies
C)   Separating out the disruptive technology and creating an autonomous operating division solely for this new technology
D)   Asking customers if they are interested in the new technology
E)   Understanding that a disruptive technology will require a radically different value chain with a different cost structure

Question 2

Give an example of an industry that has recently undergone a technological paradigm shift. What impact did the shift have on established companies and on new entrants to the industry?

Accepted Answer

Many industries in retailing and manufac...

Question 3

Mathematica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer. It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix. Mathematica 1.0 can be described as which of the following applications?

Accepted Answer

A)   Dominant
B)   Analogous
C)   Hardware
D)   Strategic
E)   Killer

Question 4

Computer software products have high marginal costs and low fixed costs.

Accepted Answer

A) True 
 B)False

Question 5

In order to take advantage of being a first mover in an industry, a new entrant must decide on whether to try to do it alone, enter into a strategic alliance, or license its technology.

Accepted Answer

A) True 
 B)False

Question 6

Technological disruption:

Accepted Answer

A)   is typically a temporary phase lasting a few months.
B)   occurs when the manufacturing plants of a company fail.
C)   mostly affects the new entrants.
D)   compels firms to adopt new business models.
E)   is a problem primarily in embryonic industries.

Question 7

Which of the following statements is true about establishing technical standards?

Accepted Answer

A)   Companies in an industry cannot lobby the government to mandate an industry standard.
B)   Technical standards are often set by cooperation among businesses, without government help.
C)   Companies cannot adopt technical standards that are in the public domain.
D)   Market demand is not taken into consideration when it comes to establishing technical standards.
E)   The strategy and business model a company has developed for promoting its technological standard holds little importance when it comes to establishing standards.

Question 8

Which of the following is NOT true of high-technology industries?

Accepted Answer

A)   First movers have an advantage because their customers avoid switching costs.
B)   First movers have higher pioneering costs than later entrants.
C)   Later entrants can avoid the mistakes made by first movers.
D)   First movers that create a revolutionary product are in a monopoly position.
E)   First movers run the risk of building the wrong resources and capabilities.

Question 9

The layout of the keys on a computer keyboard is an example of a technical standard.

Accepted Answer

A) True 
 B)False

Question 10

There are no significant benefits to owning a technical standard in an industry.

Accepted Answer

A) True 
 B)False

Question 11

When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following strategies should a company NOT adopt if it wants to win a format war?

Accepted Answer

A)   Developing killer applications
B)   Developing complementary products
C)   Joining forces with other companies to develop new technologies
D)   Aggressively marketing to jump-start demand
E)   Charging extremely high license fee for the technology

Question 13

Microsoft's near-monopoly of PC operating systems substantially reduces the risks facing the makers of complementary products and the costs of those products.

Accepted Answer

A) True 
 B)False

Question 14

One important advantage of being a first mover is that it guarantees success.

Accepted Answer

A) True 
 B)False

Question 15

The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

Accepted Answer

A) True 
 B)False

Question 16

With reference to high-technology industries, which of the following statements is true about technical standards?

Accepted Answer

A)   They emerge because there are economic benefits associated with them.
B)   They cause compatibility problems between products and their complements.
C)   They can create a lot of confusion in the minds of consumers.
D)   They often result in higher production costs.
E)   They increase the risks associated with supplying complementary products.

Question 17

What is the desired outcome of a format war?

Accepted Answer

A)   To control the source of differentiation which also controls the value that such differentiation can create for the customer.
B)   To win the greatest market share in the industry.
C)   To have control over setting the price for goods and services.
D)   To edge other companies out of the industry.
E)   To gain copyright and patent license over a product.

Question 18

Antibody Solutions is a company that specializes in cell-bank storage and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

Accepted Answer

A) True 
 B)False

Question 19

Venus Corp. a high-technology, gadget-making company has introduced a gaming console with attractive features. Even though the console is priced modestly and has better features than the existing ones, it has failed as many customers are apprehensive about buying it. To create demand, Venus Corp. should:

Accepted Answer

A)   price the console extremely high.
B)   create its own set of technical standards.
C)   ensure that there are adequate complementary products.
D)   use minimalistic and subtle advertising and marketing strategies.
E)   avoid licensing the format to other companies.

Question 20

An advantage of being a first mover is that:

Accepted Answer

A)   the pioneering costs are minimal.
B)   there are well-defined distribution channels.
C)   there is no risk of building the wrong resources.
D)   the focus is always on the mass market.
E)   there is an opportunity to increase sales volume ahead of rivals.

Exam 7: Strategy and Technology

An advantage of being a first mover is that:

Correct Answer
verified

Which of the following statements is true about establishing technical standards?

Correct Answer
verified

Correct Answer
verified

Which of the following will NOT help an established company in addressing the potential challenge of a disruptive technology?

Correct Answer
verified

With reference to high-technology industries, which of the following statements is true about technical standards?

Correct Answer
verified

Which of the following strategies should a company NOT adopt if it wants to win a format war?

Correct Answer
verified

Mathematica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer. It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix. Mathematica 1.0 can be described as which of the following applications?

Correct Answer
verified

Which of the following is NOT true of high-technology industries?

Correct Answer
verified

Give an example of an industry that has recently undergone a technological paradigm shift. What impact did the shift have on established companies and on new entrants to the industry?

Correct Answer
verified
Many industries in retailing and manufac...
View Answer

When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Correct Answer
verified

Antibody Solutions is a company that specializes in cell-bank storage and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

Correct Answer
verified

The layout of the keys on a computer keyboard is an example of a technical standard.

Correct Answer
verified

The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

Correct Answer
verified

Technological disruption:

Correct Answer
verified

Computer software products have high marginal costs and low fixed costs.

Correct Answer
verified

In order to take advantage of being a first mover in an industry, a new entrant must decide on whether to try to do it alone, enter into a strategic alliance, or license its technology.

Correct Answer
verified

What is the desired outcome of a format war?

Correct Answer
verified

There are no significant benefits to owning a technical standard in an industry.

Correct Answer
verified

Microsoft's near-monopoly of PC operating systems substantially reduces the risks facing the makers of complementary products and the costs of those products.

Correct Answer
verified

One important advantage of being a first mover is that it guarantees success.

Correct Answer
verified

Exam 7: Strategy and Technology

An advantage of being a first mover is that:

Correct AnswerverifiedShow Answer

Which of the following statements is true about establishing technical standards?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following will NOT help an established company in addressing the potential challenge of a disruptive technology?

Correct AnswerverifiedShow Answer

With reference to high-technology industries, which of the following statements is true about technical standards?

Correct AnswerverifiedShow Answer

Which of the following strategies should a company NOT adopt if it wants to win a format war?

Correct AnswerverifiedShow Answer

Mathematica 1.0 was one of the most distinctive applications for the short-lived NeXT Computer. It still sets the standard for symbolic math and visualization on Windows, Mac, Linux, and Unix. Mathematica 1.0 can be described as which of the following applications?

Correct AnswerverifiedShow Answer

Which of the following is NOT true of high-technology industries?

Correct AnswerverifiedShow Answer

Give an example of an industry that has recently undergone a technological paradigm shift. What impact did the shift have on established companies and on new entrants to the industry?

Correct AnswerverifiedMany industries in retailing and manufac...View AnswerShow Answer

When two or more companies compete with each other to get their technology adopted as a standard in an industry, and when network effects and positive feedback loops are important, the company that wins the format war will be the one whose strategy best exploits positive feedback loops.

Correct AnswerverifiedShow Answer

Antibody Solutions is a company that specializes in cell-bank storage and producing antibodies for bacterial and viral infections. It is not considered a high-tech company since it is not technically in the computer or software industry, which is typically considered high-tech.

Correct AnswerverifiedShow Answer

The layout of the keys on a computer keyboard is an example of a technical standard.

Correct AnswerverifiedShow Answer

The outcome of format wars to control the source and customer value of differentiation can ultimately affect the profitability and survival of a company.

Correct AnswerverifiedShow Answer

Technological disruption:

Correct AnswerverifiedShow Answer

Computer software products have high marginal costs and low fixed costs.

Correct AnswerverifiedShow Answer

In order to take advantage of being a first mover in an industry, a new entrant must decide on whether to try to do it alone, enter into a strategic alliance, or license its technology.

Correct AnswerverifiedShow Answer

What is the desired outcome of a format war?

Correct AnswerverifiedShow Answer

There are no significant benefits to owning a technical standard in an industry.

Correct AnswerverifiedShow Answer

Microsoft's near-monopoly of PC operating systems substantially reduces the risks facing the makers of complementary products and the costs of those products.

Correct AnswerverifiedShow Answer

One important advantage of being a first mover is that it guarantees success.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Many industries in retailing and manufac...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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