Question 1

Aggressive marketing in the context of format wars:

Accepted Answer

A)  deters early adopters.
B)  helps a company jump-start demand.
C)  results in lower emphasis on killer applications.
D)  does not encompass point-of-sales promotion techniques.
E)  usually triggers a negative feedback loop.

Question 2

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

Accepted Answer

A) True 
 B)False

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 a(n) _____ application.

Accepted Answer

A)  dominant
B)  analogous
C)  hardware
D)  strategic
E)  killer

Question 4

What are technical standards,why are they important,and how are they established?

Accepted Answer

Technical standards refer to a set of te...

Question 5

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.In order 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. C

Question 6

Cooperating with competitors:

Accepted Answer

A)  reduces competition in the market.
B)  creates confusion among customers and often lead them to delay their purchases.
C)  helps lower the entry barriers of the industry, thus allowing new entrants to bring in their own formats.
D)  curbs network effects by discouraging complementary products.
E)  results in the creation of several new formats, thus intensifying format wars.

Question 7

It is important for a company to make sure that,in addition to the product itself,there is an adequate supply of complements to win a format war.

Accepted Answer

A) True 
 B)False

Question 8

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. D

Question 9

Which of the following is true of first movers?

Accepted Answer

A)  The first mover cannot be able to establish brand loyalty.
B)  The first mover has no opportunity to exploit network effects and positive feedback loops.
C)  The first mover cannot create switching costs for its customers to deter rivals.
D)  The first mover that creates a revolutionary product is in a monopoly position.
E)  Being a first mover guarantees instant success.

Question 10

Cell phone technology is replacing traditional wired phone technology.This is an example of a(n) :

Accepted Answer

A)  first-mover advantage.
B)  technological paradigm shift.
C)  format war.
D)  complementary product.
E)  embryonic industry.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Technical standards are often set by cooperation among businesses,without government help.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Microsoft Word,the word-processing software,was so easy to use and had so many useful features,that no other software could compete with it.Therefore,at the time of its introduction,Microsoft Word could be described as a killer application.

Accepted Answer

A) True 
 B)False

Question 15

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Accepted Answer

A)  Embryonic
B)  Growth
C)  Shakeout
D)  Maturity
E)  Decline

Question 16

When a first mover does not have complementary assets,barriers to imitation are high,and there are several capable competitors,the first mover should:

Accepted Answer

A)  license the innovation to others.
B)  enter into a joint venture to protect the product.
C)  lower the barriers for imitation.
D)  sell the technology outright to another firm.
E)  wait until competitors develop an alternative product.

Question 17

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. A

Question 18

The various strategies that companies should adopt to win format wars revolve around:

Accepted Answer

A)  getting the federal government to intercede.
B)  making network effects work in their favor and against their competitors.
C)  avoiding aggressive marketing and advertising strategies.
D)  curbing the supply of complementary products.
E)  charging high license fees.

Question 19

Marginal costs in high-technology industries tend to stay very low as production rises.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT a basic strategy for a first mover?

Accepted Answer

A)  Develop and market the innovation itself
B)  Develop and market the innovation jointly with other companies through a strategic alliance or joint venture
C)  License the innovation to others
D)  Discourage development of complementary assets
E)  Increase height of imitation barriers

Exam 7: Strategy and Technology

Aggressive marketing in the context of format wars:

Correct Answer
verified

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

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 a(n) _____ application.

Correct Answer
verified

What are technical standards,why are they important,and how are they established?

Correct Answer
verified
Technical standards refer to a set of te...
View Answer

Correct Answer
verified
C

Cooperating with competitors:

Correct Answer
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It is important for a company to make sure that,in addition to the product itself,there is an adequate supply of complements to win a format war.

Correct Answer
verified

Technological disruption:

Correct Answer
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D

Which of the following is true of first movers?

Correct Answer
verified

Cell phone technology is replacing traditional wired phone technology.This is an example of a(n) :

Correct Answer
verified

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

Correct Answer
verified

Technical standards are often set by cooperation among businesses,without government help.

Correct Answer
verified

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

Correct Answer
verified

Microsoft Word,the word-processing software,was so easy to use and had so many useful features,that no other software could compete with it.Therefore,at the time of its introduction,Microsoft Word could be described as a killer application.

Correct Answer
verified

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Correct Answer
verified

When a first mover does not have complementary assets,barriers to imitation are high,and there are several capable competitors,the first mover should:

Correct Answer
verified

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

Correct Answer
verified
A

The various strategies that companies should adopt to win format wars revolve around:

Correct Answer
verified

Marginal costs in high-technology industries tend to stay very low as production rises.

Correct Answer
verified

Which of the following is NOT a basic strategy for a first mover?

Correct Answer
verified

Exam 7: Strategy and Technology

Aggressive marketing in the context of format wars:

Correct AnswerverifiedShow Answer

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

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 a(n) _____ application.

Correct AnswerverifiedShow Answer

What are technical standards,why are they important,and how are they established?

Correct AnswerverifiedTechnical standards refer to a set of te...View AnswerShow Answer

Correct AnswerverifiedC

Cooperating with competitors:

Correct AnswerverifiedShow Answer

It is important for a company to make sure that,in addition to the product itself,there is an adequate supply of complements to win a format war.

Correct AnswerverifiedShow Answer

Technological disruption:

Correct AnswerverifiedD

Which of the following is true of first movers?

Correct AnswerverifiedShow Answer

Cell phone technology is replacing traditional wired phone technology.This is an example of a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Technical standards are often set by cooperation among businesses,without government help.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Microsoft Word,the word-processing software,was so easy to use and had so many useful features,that no other software could compete with it.Therefore,at the time of its introduction,Microsoft Word could be described as a killer application.

Correct AnswerverifiedShow Answer

A technological paradigm shift is most likely to occur in which stage of the industry life cycle?

Correct AnswerverifiedShow Answer

When a first mover does not have complementary assets,barriers to imitation are high,and there are several capable competitors,the first mover should:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

The various strategies that companies should adopt to win format wars revolve around:

Correct AnswerverifiedShow Answer

Marginal costs in high-technology industries tend to stay very low as production rises.

Correct AnswerverifiedShow Answer

Which of the following is NOT a basic strategy for a first mover?

Correct AnswerverifiedShow Answer

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Technical standards refer to a set of te...
View Answer

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C

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D

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A

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Correct Answer
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