Question 1

Metcalfe's Law is used to explain the concept of switching costs.

Accepted Answer

Metcalfe's Law is used to explain the network effect, stating that the value of a telecommunications network is proportional to the square of the number of connected users of the system.

Question 2

Businesses benefit from economies of scale when the cost of an investment can be used in serving a niche customer base.

Accepted Answer

Economies of scale refer to the cost advantage businesses experience when production becomes efficient, as costs can be spread over a larger number of goods, not specifically when serving a niche customer base.

Question 3

Firms that build an imitation-resistant value chain develop a way of doing business that others struggle to replicate.

Accepted Answer

An imitation-resistant value chain is designed in such a way that its operations, culture, and activities are unique and difficult for competitors to copy, giving the firm a competitive advantage.

Question 4

Which of the following represents one of the primary components of the value chain?
A) Outbound logistics
B) Firm infrastructure
C) Human resource management
D) Research and development
E) Procurement

Accepted Answer

The answer of Which of the following represents one of...

Question 5

A salesperson's ability to effectively bargain with his/her consumers is called viral marketing.

Accepted Answer

Viral marketing refers to a strategy that encourages individuals to share a marketing message to others, creating the potential for exponential growth in the message's exposure and influence. It does not relate to a salesperson's ability to bargain with consumers.

Question 6

When firms see distribution partners as rivals, this is known as Channel Conflict

Accepted Answer

Channel conflict occurs when there is disagreement or discord among channel partners, such as manufacturers and distributors or retailers, often because of perceived competition or misalignment of goals.

Question 7

A firm can benefit from high switching costs, even when rivals offer free products.

Accepted Answer

High switching costs can create a barrier for customers to switch to a rival's product, even if it's free, because the inconvenience, time, or financial cost of switching outweighs the benefit of the free product.

Question 8

According to TechCrunch, Facebook's development mantra, formerly, "Move Fast and Break Things" should now be "__________________ ."

Accepted Answer

The answer of According to TechCrunch, Facebook's development mantra, formerly,...

Question 9

A(n) _____ is the symbolic embodiment of all the information connected with a product or service.
A) trademark
B) copyright
C) patent
D) brand
E) advertisement

Accepted Answer

A brand is the symbolic embodiment of all the information connected with a product or service, including its name, logo, and other visual elements that help to distinguish it from other products and services in the market.

Question 10

Benefits related to a firm's size are referred to as _____.
A) network effects
B) brand recall
C) scale advantages
D) vertical integration
E) disintermediation

Accepted Answer

Scale advantages refer to the benefits a firm gains as it increases in size, such as cost reductions due to economies of scale, increased bargaining power, and the ability to spread fixed costs over a larger output.

Question 11

The set of activities through which a product or service is created and delivered to customers is known as a(n) _____.
A) marketing plan
B) value chain
C) inventory turnover
D) strategic position
E) pure play

Accepted Answer

The correct term for the set of activities through which a product or service is created and delivered to customers is known as a "value chain." This concept encompasses all the processes and activities involved in taking a product from conception through production, delivery to customers, and after-sales support.

Question 12

A strong brand can be an exceptionally powerful resource for competitive advantage by lowering ________, proxying _____ and inspiring _____.
A) price strategy innovation
B) switching costs quantity performance
C) expenses marketing respect
D) search costs quality trust
E) customer concern investment profits

Accepted Answer

A strong brand can lower search costs for consumers, serve as a proxy for quality, and inspire trust, making it a powerful competitive advantage.

Question 13

Many firms choose not to implement operational components of ERP software and instead elect to create their own propriety solutions in part because they see their uniqueness in certain operations areas as key to creating difficult-to-imitate competitive advantages.

Accepted Answer

Many firms believe that their unique operational processes are a source of competitive advantage and fear that adopting standard ERP components might lead to a loss of this uniqueness. Therefore, they often choose to develop proprietary solutions for certain operations to maintain their competitive edge.

Question 14

Commodities are products or services that vary across multiple vendors.

Accepted Answer

Commodities are products or services that are largely uniform across different vendors, making them interchangeable.

Question 15

How did Apple trump Google to become the dominant mapping platform on iOS?
A) Apple's control of iOS gave it control of the distribution channel to reach its users, kicking Google out as the default mapping app and capturing the majority of user engagement.
B) Apple sued Google for copyright infringement related to the look and feel of Apple Maps.
C) Apple sued Google for privacy violations related to the collection of map data.
D) Apple hasn't trumped Google Maps. Google's Map app is used by the majority of iOS customers, whereas most users ignore Apple Maps.

Accepted Answer

Apple's control over iOS allowed it to replace Google Maps with its own mapping solution as the default maps app, thereby securing a significant user base by leveraging its platform's distribution capabilities.

Question 16

A trademark is the symbolic embodiment of all the information connected with a product or service of a firm.

Accepted Answer

A trademark is a recognizable sign, design, or expression that identifies products or services of a particular source, but it does not encompass all information connected with a product or service.

Question 17

Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell's present struggles:
A) underscore the importance of continually assessing a firm's strategic position among changing market conditions.
B) are a result of rivals adopting supply chain management of software products that have yielded competitive advantages.
C) imply that publicly traded firms are at a disadvantage in the technology sector.
D) highlight the fact that scale advantages of an established firm are a huge factor in discouraging newer entrants to a market.
E) demonstrate that resource-based thinking can help firms avoid the trap of carelessly entering markets simply because growth is spotted.

Accepted Answer

Dell's struggles highlight the need for firms to continuously evaluate and adapt their strategies in response to evolving market dynamics and competitive pressures.

Question 18

Network externalities exist when a product or service becomes less expensive as more people use it.

Accepted Answer

Network externalities exist when the value of a product or service increases as more people use it, not necessarily becoming less expensive.

Question 19

The scale of technology investment required to run a business can act as a barrier to entry by discouraging new, smaller competitors.

Accepted Answer

The high costs associated with acquiring, implementing, and maintaining technology can deter smaller companies from entering a market, thus acting as a barrier to entry and limiting competition.

Question 20

Leveraging consumers to promote a product or service is known as _____.
A) straddling
B) affiliating
C) long tailing
D) crowdsourcing
E) viral marketing

Accepted Answer

Viral marketing involves leveraging consumers to promote a product or service, often through social media or other digital channels, by encouraging them to share the information with their networks, thus spreading the message widely and quickly.

Quiz 2: Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

Metcalfe's Law is used to explain the concept of switching costs.

Businesses benefit from economies of scale when the cost of an investment can be used in serving a niche customer base.

Firms that build an imitation-resistant value chain develop a way of doing business that others struggle to replicate.

Which of the following represents one of the primary components of the value chain?

A salesperson's ability to effectively bargain with his/her consumers is called viral marketing.

When firms see distribution partners as rivals, this is known as Channel Conflict

A firm can benefit from high switching costs, even when rivals offer free products.

According to TechCrunch, Facebook's development mantra, formerly, "Move Fast and Break Things" should now be "__________________ ."

A(n) _____ is the symbolic embodiment of all the information connected with a product or service.

Benefits related to a firm's size are referred to as _____.

The set of activities through which a product or service is created and delivered to customers is known as a(n) _____.

A strong brand can be an exceptionally powerful resource for competitive advantage by lowering ______, proxying _ and inspiring ___.

Many firms choose not to implement operational components of ERP software and instead elect to create their own propriety solutions in part because they see their uniqueness in certain operations areas as key to creating difficult-to-imitate competitive advantages.

Commodities are products or services that vary across multiple vendors.

How did Apple trump Google to become the dominant mapping platform on iOS?

A trademark is the symbolic embodiment of all the information connected with a product or service of a firm.

Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell's present struggles:

Network externalities exist when a product or service becomes less expensive as more people use it.

The scale of technology investment required to run a business can act as a barrier to entry by discouraging new, smaller competitors.

Leveraging consumers to promote a product or service is known as _____.