MGT 405 EXAM 2 QUESTIONS AND
ANSWERS ALL CORRECT
What is the importance of complements in a format war? - Answer- a. Complements
stimulate the incentive to buy the original product because customers will then have a
large supply of complements to use in conjunction with the main product.
Increased competition among high-technology markets tends to lead to faster
improvement of technology than consumers can fully utilize. Why? - Answer- c. A
company that outputs higher technology can demand higher premium price points to
attempt to set the standard of the market.
Three companies, Fast Forward, Ultra Entertainment, and LBS, are investing in
developing Blu-ray players for a premium, enhanced media experience for customers.
The three companies decided to work together, combining their technologies in order to
avoid introducing competing and incompatible technology. What strategy did the
companies use to establish their technology as a standard? - Answer- b. Cooperate with
competitors
Nokia was once one of the front-runners of the mobile phone industry. However, when
smartphone technology was introduced, Nokia was quickly forgotten. Basic phones
became largely obsolete, and the selection decreased exponentially as the demand for
smartphones heavily increased. Apple, Android, and Samsung now currently hold the
largest market share for the smartphone industry. With this information, we can
conclude that Nokia was affected by a(n): - Answer- b. technological paradigm shift.
A pharmaceutical company was the first to introduce a revolutionary treatment for
rheumatoid arthritis. Sales and demand increased rapidly; however, the company could
not meet the demand due to lack of manufacturing power. Based on what you know
about the company, which innovation strategy should it have implemented? - Answer- a.
Enter into an alliance with another company.
Sets of technical specifications that producers adhere to when making a product or a
component of it are known as: - Answer- c. technical standards.
Which of the following is NOT indicative of a technological paradigm shift? - Answer- a.
New technologies are immediately more efficient than established technologies.
, The video game Halo was built for the Xbox platform and was so popular that many
consumers bought an Xbox system in order to play the game. When a product is so
compelling that it persuades consumers to adopt a particular format or technology,
which reduces demand for competing formats, it is known as a: - Answer- b. killer
application.
When a company offers a product or service that provides greater value through
superior differentiation at a lower cost than was previously thought possible, it is
presenting: - Answer- d. value innovation.
Superior quality is an important functional-level strategy for both low-cost and
differentiation strategies. Strategic managers for a company pursuing a low-cost
strategy should focus on: - Answer- d. improving the ability to manufacture products by
reducing production inputs to lower costs.
Which of these companies is pursuing a differentiation strategy to gain a competitive
advantage? - Answer- b. Starbucks utilizes an upscale customer experience, high-
quality coffee drinks, and brand building to charge a premium price for its products.
If a company's strategy is to deliver products with superior functions and features, it is
using a: - Answer- c. differentiation strategy.
A jeans company is pursuing a low-cost strategy and has achieved a position in which it
is the lowest-cost manufacturer of denim products. One of the ways the company can
achieve a competitive advantage against its rivals is to: - Answer- a. undercut them in a
price war to increase volume and drive weaker low-cost rivals out of business.
The four generic business-level strategies include the dimensions of broad and narrow
approaches to a market. What are the other two dimensions? - Answer- c. Low-cost and
differentiation
A restaurant conducted an internal review of its resources and distinctive competencies.
It concluded that customers perceive the company's dessert menu to be more delicious
and of greater value than that of the competitors. Which business-level strategy should
the company consider? - Answer- d. Differentiation strategy
The business-level strategies that support a differentiation strategy are: - Answer- a.
based around ensuring that customers perceive a product to have greater value
targeted to the unique needs of a single customer niche.
Companies that select a differentiation strategy must also recognize: - Answer- a. the
importance of controlling costs to maintain profitability.
Which of these companies developed a business concept that included value
innovation, allowing it to compete in a blue ocean? - Answer- b. Uber, founded in 2009,
ANSWERS ALL CORRECT
What is the importance of complements in a format war? - Answer- a. Complements
stimulate the incentive to buy the original product because customers will then have a
large supply of complements to use in conjunction with the main product.
Increased competition among high-technology markets tends to lead to faster
improvement of technology than consumers can fully utilize. Why? - Answer- c. A
company that outputs higher technology can demand higher premium price points to
attempt to set the standard of the market.
Three companies, Fast Forward, Ultra Entertainment, and LBS, are investing in
developing Blu-ray players for a premium, enhanced media experience for customers.
The three companies decided to work together, combining their technologies in order to
avoid introducing competing and incompatible technology. What strategy did the
companies use to establish their technology as a standard? - Answer- b. Cooperate with
competitors
Nokia was once one of the front-runners of the mobile phone industry. However, when
smartphone technology was introduced, Nokia was quickly forgotten. Basic phones
became largely obsolete, and the selection decreased exponentially as the demand for
smartphones heavily increased. Apple, Android, and Samsung now currently hold the
largest market share for the smartphone industry. With this information, we can
conclude that Nokia was affected by a(n): - Answer- b. technological paradigm shift.
A pharmaceutical company was the first to introduce a revolutionary treatment for
rheumatoid arthritis. Sales and demand increased rapidly; however, the company could
not meet the demand due to lack of manufacturing power. Based on what you know
about the company, which innovation strategy should it have implemented? - Answer- a.
Enter into an alliance with another company.
Sets of technical specifications that producers adhere to when making a product or a
component of it are known as: - Answer- c. technical standards.
Which of the following is NOT indicative of a technological paradigm shift? - Answer- a.
New technologies are immediately more efficient than established technologies.
, The video game Halo was built for the Xbox platform and was so popular that many
consumers bought an Xbox system in order to play the game. When a product is so
compelling that it persuades consumers to adopt a particular format or technology,
which reduces demand for competing formats, it is known as a: - Answer- b. killer
application.
When a company offers a product or service that provides greater value through
superior differentiation at a lower cost than was previously thought possible, it is
presenting: - Answer- d. value innovation.
Superior quality is an important functional-level strategy for both low-cost and
differentiation strategies. Strategic managers for a company pursuing a low-cost
strategy should focus on: - Answer- d. improving the ability to manufacture products by
reducing production inputs to lower costs.
Which of these companies is pursuing a differentiation strategy to gain a competitive
advantage? - Answer- b. Starbucks utilizes an upscale customer experience, high-
quality coffee drinks, and brand building to charge a premium price for its products.
If a company's strategy is to deliver products with superior functions and features, it is
using a: - Answer- c. differentiation strategy.
A jeans company is pursuing a low-cost strategy and has achieved a position in which it
is the lowest-cost manufacturer of denim products. One of the ways the company can
achieve a competitive advantage against its rivals is to: - Answer- a. undercut them in a
price war to increase volume and drive weaker low-cost rivals out of business.
The four generic business-level strategies include the dimensions of broad and narrow
approaches to a market. What are the other two dimensions? - Answer- c. Low-cost and
differentiation
A restaurant conducted an internal review of its resources and distinctive competencies.
It concluded that customers perceive the company's dessert menu to be more delicious
and of greater value than that of the competitors. Which business-level strategy should
the company consider? - Answer- d. Differentiation strategy
The business-level strategies that support a differentiation strategy are: - Answer- a.
based around ensuring that customers perceive a product to have greater value
targeted to the unique needs of a single customer niche.
Companies that select a differentiation strategy must also recognize: - Answer- a. the
importance of controlling costs to maintain profitability.
Which of these companies developed a business concept that included value
innovation, allowing it to compete in a blue ocean? - Answer- b. Uber, founded in 2009,
