2.

Question 2

How might a biotech firm earn monopoly rents?

1 point

The biotech firm has excess production capacity.

The biotech firm has a limited distribution network.

The biotech firm relies on others to innovate new drugs.

The biotech firm has a patent on a new drug.

3.

Question 3

Digital cameras have made film cameras all but obsolete. Although new models are released regularly by the dominant brands, they represent incremental improvements rather than amazing new capabilities. In which stage of the competitive life cycle are digital cameras?

1 point

Emergent phase

Mature phase

Disruption

Growth phase

4.

Question 4

Which of the following most resembles an innovation driven by demand pull?

1 point

Apple introduces Siri, the iPhone's built-in voice-activated "assistant."

The R&D team from Sharp integrate a camera into their cell phones in 1997.

Customers complained about high fuel costs and demanded more sustainable vehicles, so Toyota introduced the Prius.

Sony introduces the walkman, introducing a portable way to listen to music.

5.

Question 5

Which of the following is a reason incumbents often have difficulty making the transition to a new technology following a sharp technological disruption?

1 point

They may be in a similar or even worse position compared to new entrants.

New technologies often require intensive capital investment, which an incumbent firm is less likely to have.

They have complementary resources or capabilities.

Consumers are brand loyal and don't want the brand to change.

6.

Question 6

In a typical competitive life cycle, what revenue pattern do we see upon introduction of a new product?

1 point

There are low revenues to begin and then continuous growth.

There are low revenues to begin with that grow over time until they reach a steady state.

There are high revenues right away and then continuous growth.

There are high revenues right away that decrease as more firms enter the market.

7.

Question 7

An athletic footwear company comes up with a new shoe design with a built in chip that links to mobile phones to track running distance and speed. How should a rival footwear manufacturer react?

1 point

Play a "wait and see" game, knowing their loyal customer base will take some time to adopt the new technology.

Research customers' reactions and respond accordingly.

Change its line of footwear to incorporate this technology.

Concede that this radical new technology gives the rival company a superior capability and leave the market while still in a strong position.

8.

Question 8

How does an industry's evolution history inform a competitive life cycle analysis?

1 point

It determines how long the mature phase will be.

It helps establish if an industry is slowly evolving or hyperdynamic.

It determines the results of an industry shakeout.

It measures innovative capability.

9.

Question 9

Which of the following is a reason why incumbents often have difficulty when facing a disruption during a competitive life cycle?

1 point

Organizational structure

Too much capital

Large customer base

Too many experts in the room

10.

Question 10

Which of the following do we observe during the era of ferment within an industry?

1 point

A very short period of change

Firms exiting the market

A new S-curve forms when a disruption occurs

A dominant design and no experimentation

11.

Question 11

Why is having dynamic capability critical to compete in the mobile phone industry?

1 point

There are many disruptions.

It creates barriers to entry.

It cuts costs.

It allows you to beat competitors.

12.

Question 12

Why do strategists analyze the competitive life cycle?

1 point

To identify which incumbent company to acquire

To understand how to budget spending in order to build competitiveness

To understand and learn from the typical patterns in the life of a product

To understand which firms have customer loyalty