MCQ's 3pts or more

[Liam Bucher]

When a firm becomes stagnant in market growth and fails to compete with other firms, it is necessary to begin realigning the business model by applying the following strategies EXCEPT for:

a. Developing a competitive advantage and refraining from convergence or imitation.

b. Creating a Blue Ocean by building new competencies within your firm.

c. Changing the marketing strategy to target a different consumer base.*

d. Adjusting the firm's value proposition which is projected to the target market.

e. Using the Resource Based View to identify valuable and rare, and inimitable and non-substitutable products/services in the market.

The greatest risk a 'first-mover' firm can take when introducing a product or service is

a. Investing too much, too fast and not reviewing the initial business model, and marketing strategy, resulting in an opening in the market for late-comers.**

b. Introducing a product or service which relies on complementary products and services, high switching costs, and difficult technical obstacles.

c. Introducing a product or service with features that exceed market demand.

d. Not collaborating with potentially large competitors or outsourcing for flexibility.

e. Introducing a product or service based on horizontal differentiation, making the good slightly different and not providing a competitive advantage.

Supplantation is the danger of a strategy being superseded or replaced. Which example is best defined by Supplantation?

a. The Apple iPhone was the first phone of its kind, now there is a highly competitive market for smart phones.

b. Dell created a completely customized interface for consumers to build and purchase computers instead of purchasing at a store.

c. The first hands-free car command was a welcomed luxury, now many vehicles come standard with voice-commands readily available.

d. 'Kayak' allows consumers to search all travel websites for the best deals, but does it truly differentiate itself from other travel sites?

e. 'Block Buster', facing tough competition from 'RedBox', decided to place blue boxes at select locations in order to gain back market share lost to other movie rental competitors. 

Disruptive innovation causes a company to re-think its strategy to allow a much larger customer base the opportunity to use the product. The following industries have experienced disruptive innovation, except for:

a. Mobile phones and smart phones

b. Several automobile companies producing many new affordable models

c. High-end sports equipment producers

d. Micro-processing chips and servers

e. Coffee and food chain companies*