Question 1

Which of the following is not true regarding first movers?

Accepted Answer

First movers cannot exploit incumbent inertia; rather, they face challenges from incumbents who may have established operations and customer bases.

Question 2

If the aspects that customers have come to expect in a technology are difficult for competitors to imitate,a technology leader

Accepted Answer

If customers have come to expect certain aspects in a technology that are difficult for competitors to imitate, a technology leader can yield sustained monopoly rents or profits. This is because their technology has become the standard and competitors will find it hard to replicate or compete with the established leader.

Question 3

U-Totem was one of the early entrants into the convenience market boom of the 1970s and enjoyed huge success in the Arizona market.However,these stores did not sell gasoline.When later entrants combined gasoline sales with convenience markets,U-Totem was slow to respond and lost market share.This is an example of

Accepted Answer

The scenario describes U-Totem's reluctance to adapt to changing market conditions and the arrival of new competitors. This can be attributed to incumbent inertia, which refers to the resistance to change shown by established companies that are successful in their existing markets.

Question 4

Which of the following is an advantage of being a later entrant into a market?

Accepted Answer

Later entrants can learn from the mistakes and successes of the earlier entrants and do not have to invest as heavily in exploratory research. They can also save on initial marketing costs as the concept has already been introduced to the market by earlier entrants.

Question 5

Jackson Laboratories has come up with a new diabetic blood sugar monitoring device that does not require patients to prick their fingers.It has determined that this new technology will offer a great advantage to customers,that no other competitors possess the capabilities to deliver it,and that the product will not be easily imitated by others.Jackson should enter the market

Accepted Answer

The answer of Jackson Laboratories has come up with a...

Question 6

If you enter the market too early,the risk is that

Accepted Answer

If you enter the market too early, there is a risk that the technology or complements required for the product will not yet be fully developed, which can limit the success and adoption of your product.

Question 7

When Fisher Athletics wanted to provide better landing mats for gymnasts,it asked its supplier-North Carolina Foam Industries (NCFI)- to come up with a higher quality foam to use in its mats.NCFI represents a(n)_____ for Fisher Athletics.

Accepted Answer

NCFI represents an enabling technology for Fisher Athletics because it provides the necessary materials (higher quality foam) that enable Fisher Athletics to improve its product offerings (landing mats).

Question 8

Which of the following statements is true regarding first movers?

Accepted Answer

The answer of Which of the following statements is true...

Question 9

In the video game console industry,Magnavox was the first mover but was not the winner.Atari and Nintendo came up with their respective gaming consoles soon afterwards.They were

Accepted Answer

Magnavox was the first mover in the video game console industry with their Odyssey console, but they did not dominate the market. Atari and Nintendo were early movers, introducing their consoles soon after and ultimately becoming more successful than Magnavox. Laggards and late movers would have entered the market much later, after the market had already been established by the early movers.

Question 10

The tendency of firms to be slow to respond to changes in the industry environment due to their large size,established routines,or prior strategic commitments to existing suppliers and customers is known as:

Accepted Answer

The term "incumbent inertia" specifically refers to the tendency of established firms to be resistant to change and slow to respond to shifts in the industry environment. The other answer choices - organizational passivity, organizational lethargy, and incumbent apathy - do not capture this concept as precisely.

Question 11

Which of the following statements is true regarding customer preferences?

Accepted Answer

The answer of Which of the following statements is true...

Question 12

A technology that makes a dramatic improvement over previous generations or different technologies that serve similar functions will

Accepted Answer

A technology that makes a dramatic improvement over previous generations or different technologies that serve similar functions is likely to gain customer acceptance more rapidly because it offers clear benefits and advantages over the existing options. Customers are usually willing to adopt a new technology that enhances their experience or solves their problems more effectively.

Question 13

When McDonalds first moved into Russia,it had to teach farmers how to grow better potatoes and cattle,and bakers how to make hamburger buns.This is an example of

Accepted Answer

McDonald's had to teach the farmers, bakers, and suppliers how to meet the company's standards for producing their products. This suggests that the supply channel was undeveloped in Russia, and McDonald's had to work on developing these channels to meet its needs. This is not an example of corporate social responsibility, as there is no indication that McDonald's was motivated by ethical concerns rather than business obligations. Similarly, there is no evidence of development partnerships or late-mover manipulation, as the scenario presents McDonald's as taking the initiative to establish its supply chain.

Question 14

Joan had been using WordPerfect 5.1 for DOS for several years and was quite an expert in it.When her boss wanted her to change to a Windows-based system,Joan told him that it would slow her down and it would cost a lot of money to be trained on using such a new system.The is an example of

Accepted Answer

The situation described in the question is an example of high switching costs, which refers to the costs (financial, time, effort) associated with changing from one product or service to another. Joan is an expert in WordPerfect 5.1 for DOS and switching to a new Windows-based system would require her to be trained, which is a cost. Additionally, she has become accustomed to her current system and switching to a new system may slow her down, which is another potential cost. These high switching costs may make it difficult for Joan to switch to a new system, even if it is objectively better. Consumer irrationality, technical influence, and early entry continuation are not relevant to the situation described.

Question 15

TechSense was the first company to introduce a GPS-enabled shoe into the market and shoe sales are rapidly increasing.Which of the following is most likely to be true for TechSense?

Accepted Answer

The fact that TechSense was the first company to introduce a GPS-enabled shoe into the market suggests that they had to invest significant resources into research and development to create a unique product that stands out from competitors.

Answer: B
 While TechSense's product may be innovative and popular, consumers may still choose to switch to a competitor's product if it better meets their needs or if they offer a more attractive price point.

Answer: C
 We cannot make assumptions about whether TechSense's product is a perfect match with customer requirements based solely on the fact that shoe sales are rapidly increasing. More information would need to be gathered through market research and customer feedback.

Answer: D
 The statement does not provide any information about the availability of complementary goods producers, so we cannot determine whether they are aplenty or not.

Question 16

In the personal computer operating system market Microsoft,who was a(n)_____ became the winner in the market place.

Accepted Answer

The answer of In the personal computer operating system market...

Question 17

Which of the following scenarios describes the benefits of being a first-mover in the market?

Accepted Answer

Being a first-mover in the market can provide advantages such as control over resources or technology, as seen with the radio station having authority over a large portion of the radio spectrum.

Question 18

In which of the following scenarios would an earlier entry into the market be beneficial?

Accepted Answer

D  Entering the market early with a new line of vacuum cleaners that offer unique functionality can establish brand recognition and capture market share. Patenting a technological innovation allows a firm to protect its invention and capitalize on its first-mover advantage.

Question 19

A delayed entry into the market is preferred when

Accepted Answer

A delayed entry is preferred when customer preferences are unknown, as it allows a company to gather more information and better understand the market before launching a product.

Question 20

Intel pioneered microprocessor development in the 1970s and introduced its microprocessor well ahead of competitors.According to the classification scheme provided in the text,Intel would be classified as a(n)_____.

Accepted Answer

Intel is considered a first mover as it was the pioneer in microprocessor development and introduced its microprocessor well ahead of its competitors. First movers are companies that are the first to enter a market with a new product or innovation, giving them a competitive advantage.

Quiz 5: Timing of Entry Part Two Formulating Technological Innovation Strategy