Question 1

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 a symbol that represents all the information related to a product or service, such as its name, logo, packaging, messaging, and reputation. It encompasses the tangible (e.g. features, quality, price) and intangible (e.g. emotions, values, personality) aspects of the offering, and creates a perception in the minds of consumers. A strong brand can differentiate a company from its competitors, create loyalty among customers, and command premium pricing. Therefore, a brand is more comprehensive than a trademark, copyright, patent or advertisement, which are specific legal or promotional tools that serve different purposes.

Question 2

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 show the importance of continuously reassessing a firm's strategic position in changing market conditions. The company's previously successful value chain strategy was imitated by competitors, reducing their price advantage and market share. This highlights the need for firms to adapt and differentiate their strategies to remain competitive in the dynamic technology industry.

Question 3

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 advantages that businesses gain when they produce goods or services in large quantities. This is because the cost of production per unit decreases as the volume of production increases. Therefore, businesses benefit from economies of scale when they are able to serve a large customer base, not a niche customer base.

Question 4

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 5

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

Accepted Answer

Large technology investments can be a significant cost for businesses and can deter new, smaller competitors from entering the market. These costs can include hardware, software, networking infrastructure, and ongoing maintenance and support. Thus, technology investment can act as a barrier to entry for new competitors.

Question 6

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

Accepted Answer

Metcalfe's Law is used to describe the value of a network based on the number of its users, not switching costs. However, network effects can increase switching costs because users may be hesitant to leave a network that has a large number of users, thus reducing the value of the alternative network they are considering.

Question 7

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 of iOS allowed it to make Apple Maps the default mapping app, capturing the majority of user engagement and pushing Google Maps to the side.

Question 8

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

Accepted Answer

The answer of A trademark is the symbolic embodiment of...

Question 9

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

Accepted Answer

High switching costs can make it difficult for customers to switch to a competitor, even if the competitor offers a free product. This can help the firm retain its customers and maintain market share.

Question 10

Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supplier prices. FreshDirect buys direct from suppliers, eliminating any markup from a middleman. What else did FreshDirect offer suppliers in exchange for better pricing terms?

Accepted Answer

The answer of Startup firms can struggle to gain lower...

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 set of activities through which a product or service is created and delivered to customers is referred to as a value chain. This includes activities such as production, logistics, marketing, and customer service. A marketing plan is a specific document outlining a company's marketing goals and strategies. Inventory turnover is a measure of how quickly a company sells and replaces its inventory. Strategic position refers to a company's position in the market relative to its competitors. Pure play refers to a company that exclusively operates in one digital realm, such as e-commerce.

Question 12

TiVo was a high-flying firm, whose name was synonymous with digital video recording. Why has the firm struggled to achieve consistent profitability?

Accepted Answer

The answer of TiVo was a high-flying firm, whose name...

Question 13

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 that a firm can enjoy due to its size. Examples include economies of scale, lower costs of production per unit, and bargaining power with suppliers. Network effects refer to the value that a product or service gains as more users join the network. Brand recall refers to a consumer's ability to recognize a brand and associate it with certain qualities or characteristics. Vertical integration involves a firm owning and operating different stages of the supply chain. Disintermediation refers to the removal of intermediaries in a supply chain.

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

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 16

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

Accepted Answer

This statement is true. By creating a value chain with unique and difficult to imitate features, firms can establish a competitive advantage that sets them apart in the marketplace.

Question 17

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 by providing a recognizable and trusted product or service. It can also proxy quality, as consumers may assume that a well-known brand is associated with high quality. Finally, a strong brand can inspire trust in consumers, leading to repeat business and increased profits.

Question 18

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

This statement is true. Some firms may feel that their unique operations are a source of competitive advantage and choose to develop their own solutions instead of using standard ERP software.

Question 19

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

Accepted Answer

Viral marketing refers to a marketing strategy that encourages individuals to pass on a marketing message to others, creating exponential growth in the message's visibility and impact. Bargaining with consumers is a negotiation tactic used by salespeople to reach an agreement on the terms and conditions of a sale.

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

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

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:

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

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.

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

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.

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

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

TiVo was a high-flying firm, whose name was synonymous with digital video recording. Why has the firm struggled to achieve consistent profitability?

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

Commodities are products or services that vary across multiple vendors.

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

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

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.

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

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