Question 1

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 2

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 value chain is the set of activities that a company performs in order to deliver a product or service to its customers. It includes activities such as research and development, production, marketing, distribution, and customer service. The value chain is an important concept in strategic management, as understanding how these activities fit together can help companies identify areas where they can create value and gain a competitive advantage. The other options are not correct because they do not accurately describe the set of activities involved in creating and delivering a product or service.

Question 3

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 rival's free product even if it has a similar or better quality. This can provide a competitive advantage to the firm with the high switching costs, as customers may be more likely to stick with their current provider despite the availability of free alternatives.

Question 4

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 5

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 represents the entirety of a product or service, including its name, design, logo, messaging, and overall reputation. It is the way in which a company distinguishes itself from competitors and establishes a relationship with its customers. While trademarks, copyrights, and patents are all types of legal protection for intellectual property, they do not encompass the full scope of a brand. And although advertising may be a key component of a brand strategy, an advertisement itself is not a true embodiment of all the information connected with a product or service.

Question 6

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 had control of the distribution channel because it controlled iOS, so it was able to make Apple Maps the default mapping app and capture the majority of user engagement. This gave Apple an advantage over Google and allowed them to become the dominant mapping platform on iOS.

Question 7

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 8

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

Accepted Answer

Metcalfe's Law is commonly used to describe the value of networks and the growth potential of social media platforms, among other things. While switching costs may be related to network effects, they are not directly explained by Metcalfe's Law.

Question 9

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 believe that their operational processes are unique and may not be fully supported by standard ERP software solutions. As a result, they may choose to develop their own proprietary systems to maintain their competitive advantage.

Question 10

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 11

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 expense for businesses, which can discourage new entrants who may not have the financial resources to compete.

Question 12

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

Accepted Answer

When firms view their distribution partners as competitors, it causes channel conflict, which can lead to a breakdown in the distribution channel, decreased sales, and damage to the relationship between the firm and its distribution partners.

Question 13

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

Accepted Answer

Viral marketing refers to the promotion of a product or service through word-of-mouth or social media shares, not a salesperson's ability to bargain with consumers.

Question 14

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

Accepted Answer

Businesses benefit from economies of scale when the cost of an investment can be spread across a larger customer base, resulting in lower per-unit costs. It is not related to serving a niche customer base.

Question 15

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 16

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 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

The given statement emphasizes the importance of continuously assessing a company's strategic position in the face of changing market conditions. It suggests that Dell failed to do so, which led to a decline in market share. Therefore, option A is the correct answer. Option B talks about rivals adopting supply chain management of software products, but the given statement does not suggest anything similar. Option C is untrue, and Option D is not relevant to the statement. Option E talks about resource-based thinking, which is not the main focus of the given statement.

Question 18

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

Accepted Answer

The statement is true. If a firm develops a value chain that is difficult for others to imitate, it creates a competitive advantage that can lead to long-term success.

Question 19

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 customers, proxy quality and inspire trust.

Question 20

One of the key questions posed by 21st century managers is "How can we possibly compete when everyone can copy our technology and the competition is a click away?" One path to take involves creating a resource or set of resources for sustainable competitive advantage. List the four characteristics that such resources must have for the possibility of sustainable competitive advantage to exist. Why is it important to have all four simultaneously?

Accepted Answer

The answer of One of the key questions posed by...

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

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

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

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

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

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