BCOR 2304 Final Exam Questions GUARANTEE A+ 2025/2026
Characteristics of Introduction stage (ILC) - 1. launch of successful innovation
2. Only a few firms in the industry
3. demand is limited due to lack of knowledge
4. Excessive costs
5. Entry barriers are high due to limited demand and high production costs
Characteristics of growth stage (ILC) - 1. Innovation has gained market acceptance
2. Increased demand due to value recognition
3.Low competition because it takes time to enter the market
4. economies of scale is reached
5. Industry standards established
Characteristics of shakeout stage (ILC) - 1. stage when growth rate of demand starts to decline and
increased entrants enter
2. Weaker firms are acquired or exit
3. Winners are large and enjoy economies of scale
Characteristics of maturity stage (ILC) - 1. Demand stabilizes
2. Few firms with large market share
3. Demand growth rate = 0
Examples: Airliners
Characteristics of decline stage (ILC) - 1. Demand declines
What four options do firms have when in a declining industry? - Exit: Thorough bankruptcy or liquidation
Harvest: reduce investment and maximize cash flow
Maintain: Continue to support marketing activities
Consolidate: buy rivals, aim for monopoly
,What are the benefits of being a first mover in the ILC? - 1. limited competition
2. growing customer demand
3. Set standard
4. Establish significant brand loyalty
what are the disadvantages of being a first mover in the ILC? - 1. Pioneering Costs- later entrants free
ride on frist movers, R&D costs, Customer education, Uncertainty of customer demand
What are the two ways of characterizing an innovation? - Tech: Whether an innovation is based on a new
or existing tech
Market: Whether an innovation is introduced into a new or an existing market?
Incremental innovation - existing tech to meet existing demand
Example: Coca-cola updating marketing
Radical innovation - uses new tech to meet new demand
-Example: Introduction of the internet
Architectural innovation - Leverages existing technology into new markets
Alters the architecture of a product
A new product, with known components, used in a novel way
Ex: Existing cellphone tech to supply new communication services
Disruptive innovation - Introduction of new tech into existing markets
ex: Chat bots vs traditional telecommunications
What type resource is intellectual property - intangible
, What us IP - involves creations of the human intellect, inventions, designs, artistic works
Why is IP important? - 1. directly related to innovation and creative works
2. It is a property that defines inventors/companies ownership over the innovative output they have
3. Increases barriers for competitors to freely imitate an inventors output
What are the 4 types of IP - 1. Patents
2. Copyright
3. Trademark
4. Trade Secret
What is a patent? - 1.sole legal right to an invention and its profits
2. other companies who want to use the invention can: purchase the patent right, rent the patent right
What are the three types of patents - 1. Utility
2. Design
3. Plant
utlility patent - 1. Patent focused on processes, products and machines that are new and useful
2. focuses on specific function
3. valid for 20 years
Example: Medical equipment, computer software, toothbrush
Design patent - 1.Focus exclusively on the shape or configuration of an invention or creative work
2.Valid for 15 years
Examples: fonts, clothing, icons
3.Affect how it looks, does not affect how it works
Characteristics of Introduction stage (ILC) - 1. launch of successful innovation
2. Only a few firms in the industry
3. demand is limited due to lack of knowledge
4. Excessive costs
5. Entry barriers are high due to limited demand and high production costs
Characteristics of growth stage (ILC) - 1. Innovation has gained market acceptance
2. Increased demand due to value recognition
3.Low competition because it takes time to enter the market
4. economies of scale is reached
5. Industry standards established
Characteristics of shakeout stage (ILC) - 1. stage when growth rate of demand starts to decline and
increased entrants enter
2. Weaker firms are acquired or exit
3. Winners are large and enjoy economies of scale
Characteristics of maturity stage (ILC) - 1. Demand stabilizes
2. Few firms with large market share
3. Demand growth rate = 0
Examples: Airliners
Characteristics of decline stage (ILC) - 1. Demand declines
What four options do firms have when in a declining industry? - Exit: Thorough bankruptcy or liquidation
Harvest: reduce investment and maximize cash flow
Maintain: Continue to support marketing activities
Consolidate: buy rivals, aim for monopoly
,What are the benefits of being a first mover in the ILC? - 1. limited competition
2. growing customer demand
3. Set standard
4. Establish significant brand loyalty
what are the disadvantages of being a first mover in the ILC? - 1. Pioneering Costs- later entrants free
ride on frist movers, R&D costs, Customer education, Uncertainty of customer demand
What are the two ways of characterizing an innovation? - Tech: Whether an innovation is based on a new
or existing tech
Market: Whether an innovation is introduced into a new or an existing market?
Incremental innovation - existing tech to meet existing demand
Example: Coca-cola updating marketing
Radical innovation - uses new tech to meet new demand
-Example: Introduction of the internet
Architectural innovation - Leverages existing technology into new markets
Alters the architecture of a product
A new product, with known components, used in a novel way
Ex: Existing cellphone tech to supply new communication services
Disruptive innovation - Introduction of new tech into existing markets
ex: Chat bots vs traditional telecommunications
What type resource is intellectual property - intangible
, What us IP - involves creations of the human intellect, inventions, designs, artistic works
Why is IP important? - 1. directly related to innovation and creative works
2. It is a property that defines inventors/companies ownership over the innovative output they have
3. Increases barriers for competitors to freely imitate an inventors output
What are the 4 types of IP - 1. Patents
2. Copyright
3. Trademark
4. Trade Secret
What is a patent? - 1.sole legal right to an invention and its profits
2. other companies who want to use the invention can: purchase the patent right, rent the patent right
What are the three types of patents - 1. Utility
2. Design
3. Plant
utlility patent - 1. Patent focused on processes, products and machines that are new and useful
2. focuses on specific function
3. valid for 20 years
Example: Medical equipment, computer software, toothbrush
Design patent - 1.Focus exclusively on the shape or configuration of an invention or creative work
2.Valid for 15 years
Examples: fonts, clothing, icons
3.Affect how it looks, does not affect how it works
