Strategic Management Final Exam
Questions & Answers(RATED A+)
Appropriability - ANSWERa firm's ability to capture returns(i.e., profit) from its own innovation
• Achieved via strategic competition barriers
first-mover advantages - ANSWERCan quickly get brand loyalty (retain customers)
• Can secure monopolies via intellectual property rights (e.g., patents)
• Might secure access to scarce resources first and build useful scarce relationships
• Examples: location (e.g., store front), contracts (e.g., distribution agreement), inputs (e.g., rare
earth minerals)
• Can benefit from lead times, learning and experience curves, economies of scale, switching costs,
network effects, ability to undercut prices, and other competition barriers to perpetually raises costs
to new entrants and other rivals
second mover advantages (including fast follower and latecomer) - ANSWERFewer costs for
marketing and educating customers about products and services,cause already done by first mover
• Can learn from mistakes of first mover
• Can imitate technology of first mover, which limits R&D costs
• Not necessarily locked-in to first technologies of first mover so can adapt andimprove in way better
proven for market
• Can enter when sure sufficient complementary infrastructure and technologies
, innovation timing - ANSWERa process of continual improvement of a product or a process prior to its
introduction on the market. Innovation is considered as a routine process of optimization mechanism
represented by a continuous decision-making.
Can include Secrecy, Intellectual property rights, and VRIO resources not specific to intellectual
property rights
• To be most effective, should be complementary -- alongside a focal innovation, should bundle or
otherwise leverage one or more VRIO assets for distribution channels, human resources, supply and
other contracts, relationships, complementary technologies, manufacturing capacity, marketing
resources, excellent service, etc
intellectual property (IPR) strategy - ANSWERIntellectual property (IP) refers to creations of the mind,
such as inventions; literary and artistic works; designs; and symbols, names and images used in
commerce.
• IP rights ("IPR" ok to interchangeably use w/"IP") provide owners of the right to exclude others
from access to or use of their property fora certain period of time.
When is secrecy best in appropriation? - ANSWERIf protecting process innovations
• If knowledge is difficult to reverse engineer
• If in short lifecycle industries
• If limited resources to file for IP
secrecy - ANSWERsecrecy refers to the intentional withholding or protection of certain information,
plans, or decisions from external parties, competitors, or even internal stakeholders for the purpose
of gaining a competitive advantage or safeguarding sensitive information.
Maintaining secrecy is often a strategic choice made by organizations to protect their intellectual
property, business strategies, upcoming product launches, or other critical information that could
impact their competitive position.
complementary assets - ANSWERthe combination of numerous resources and assets that enable a
firm to gain a competitive advantage.
assets required to derive value from a primary investment.
Questions & Answers(RATED A+)
Appropriability - ANSWERa firm's ability to capture returns(i.e., profit) from its own innovation
• Achieved via strategic competition barriers
first-mover advantages - ANSWERCan quickly get brand loyalty (retain customers)
• Can secure monopolies via intellectual property rights (e.g., patents)
• Might secure access to scarce resources first and build useful scarce relationships
• Examples: location (e.g., store front), contracts (e.g., distribution agreement), inputs (e.g., rare
earth minerals)
• Can benefit from lead times, learning and experience curves, economies of scale, switching costs,
network effects, ability to undercut prices, and other competition barriers to perpetually raises costs
to new entrants and other rivals
second mover advantages (including fast follower and latecomer) - ANSWERFewer costs for
marketing and educating customers about products and services,cause already done by first mover
• Can learn from mistakes of first mover
• Can imitate technology of first mover, which limits R&D costs
• Not necessarily locked-in to first technologies of first mover so can adapt andimprove in way better
proven for market
• Can enter when sure sufficient complementary infrastructure and technologies
, innovation timing - ANSWERa process of continual improvement of a product or a process prior to its
introduction on the market. Innovation is considered as a routine process of optimization mechanism
represented by a continuous decision-making.
Can include Secrecy, Intellectual property rights, and VRIO resources not specific to intellectual
property rights
• To be most effective, should be complementary -- alongside a focal innovation, should bundle or
otherwise leverage one or more VRIO assets for distribution channels, human resources, supply and
other contracts, relationships, complementary technologies, manufacturing capacity, marketing
resources, excellent service, etc
intellectual property (IPR) strategy - ANSWERIntellectual property (IP) refers to creations of the mind,
such as inventions; literary and artistic works; designs; and symbols, names and images used in
commerce.
• IP rights ("IPR" ok to interchangeably use w/"IP") provide owners of the right to exclude others
from access to or use of their property fora certain period of time.
When is secrecy best in appropriation? - ANSWERIf protecting process innovations
• If knowledge is difficult to reverse engineer
• If in short lifecycle industries
• If limited resources to file for IP
secrecy - ANSWERsecrecy refers to the intentional withholding or protection of certain information,
plans, or decisions from external parties, competitors, or even internal stakeholders for the purpose
of gaining a competitive advantage or safeguarding sensitive information.
Maintaining secrecy is often a strategic choice made by organizations to protect their intellectual
property, business strategies, upcoming product launches, or other critical information that could
impact their competitive position.
complementary assets - ANSWERthe combination of numerous resources and assets that enable a
firm to gain a competitive advantage.
assets required to derive value from a primary investment.
