Questions and All Actual Answers
2026 Updated.
What was one of the main strategic reasons Amazon launched Amazon Go?
- To compete with Apple in electronics
- To evolve with customer shopping trends
- To reduce its online infrastructure costs
- To move away from online retail - Answer To evolve with customer shopping trends
What risk does Amazon face by entering the traditional retail space with Amazon Go?
- Lack of funding
- Loss of online customers
- Lack of experience in offline retail
- Strict governmental regulations - Answer Lack of experience in offline retail
According to Chapter 7, firms that do not innovate are likely to:
- Be outsmarted and left behind
- Avoid unnecessary costs
- Lose focus on core values
- Maintain a stable profit - Answer Be outsmarted and left behind
Amazon Go aligns with which of the following strategic goals?
- Cost-cutting
- Market saturation
- Creating new customer experiences
- Eliminating all online services - Answer Creating new customer experiences
Why did Amazon continuously invest in R&D, even when profits were low?
,- To develop more Kindle devices
- To create long-term competitive advantages through innovation
- To improve its financial performance only
- To increase the CEO's salary - Answer To create long-term competitive advantages through
innovation
Amazon Go is best classified as what type of innovation?
- Incremental
- Disruptive
- Radical
- Architectural - Answer Disruptive
Which of Amazon's innovations is an example of architectural innovation?
- Amazon Web Services
- Kindle Fire
- Amazon Locker
- Amazon Smart Watch - Answer Amazon Locker
Amazon's launch of grocery private labels (Happy Belly, Mama Bear) is an example of:
- Radical innovation
- Architectural innovation
- Disruptive innovation
- Incremental innovation - Answer Incremental innovation
Amazon Prime Air using drones for delivery is most likely considered:
- Incremental innovation
- Architectural innovation
- Disruptive innovation
- Radical innovation - Answer Radical innovation
The combination of machine learning and sensor technology in Amazon Go is an example of:
,- Regressive technology
- Industry standardization
- Technology convergence for innovation
- Blue ocean limitation - Answer Technology convergence for innovation
What internal strategy does Amazon use to promote innovation like Amazon Go?
- Licensing and technology from others
- Intrapreneurship and internal development
- Cutting R&D investments
- Outsourcing customer service - Answer Intrapreneurship and internal development
What potential competitor reaction does Amazon face with Amazon Go?
- Online lawsuits
- Parodies and mockery
- Rapid imitation and tech deployment
- Consumer lawsuits - Answer Rapid imitation and tech deployment
Amazon's method of introducing new products to a small audience (e.g., Prime members) aligns
with:
- Joint ventures
- Blue ocean strategy
- Foothold strategy
- Global acquisition - Answer Foothold strategy
Why might Amazon Go be considered a blue ocean strategy?
- It competes directly with Walmart
- It creates an untapped market with no direct competitors
- It reduces delivery time
- It was introduced in Europe - Answer It creates an untapped market with no direct
competitors
, What is one challenge Amazon may face with crossing the chams in regard to Amazon Go?
- Scaling to new global locations
- Building e-commerce platforms
- Marketing Kindle alongside groceries
- Reducing its Prime membership fee - Answer Scaling to new global locations
Which of the following best describes the market stage Amazon Go is in?
- Maturity
- Decline
- Introduction
- Shake-out - Answer Introduction
Which of the following cooperative strategies could Amazon use to scale Amazon Go globally?
- Licensing Kindle technology
- Strategic alliances with local retailers
- Competing with its own suppliers
- Downsizing Amazon Prime - Answer Strategic alliances with local retailers
What risk does Amazon face by implementing its own private-label products?
- Reduced delivery times
- Brand confusion
- Tensions with third-party suppliers
- Loss of Prime members - Answer Tensions with third-party suppliers
A rapid response by competitors to Amazon Go would demonstrate:
- Strategic patience
- First-mover failure
- Hyper-competition
- Organizational intertia - Answer Hyper-competition