WPC 470 Moore ASU Final Exam With Correct Questions & Answers

WPC 470 Moore ASU Final Exam With Correct Questions & Answers The process by which people undertake economic risk to innovate- to create new products, processes, and sometimes new organizations - Entrepreneurship Competitive benefits that accrue to the successful innovator - Firstmover advantages The five different stages; introduction, growth, shakeout, maturity, and decline, that occur in the evolution of an industry over time - Industry life cycle The positive effect (externality) that one user of a product or service has on the value of that product for other users - Network effects A form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea - Patent An enterprise that creates value by matching external producers and consumers in a way that creates value for all participants, and that depends on the infrastructure or platform that the enterprise manages - Platform business The market environment in which all players participate relative to the platform - Platform ecosystem An innovation that was developed for emerging economies before introduced in developed economies. Sometimes also called frugal innovation - Reverse innovation The pursuit of social goals while creating a profitable business - Social entrepreneurship Markets where the market leader captures almost all of the market share and is able to extract a significant amount of the value created - Winnertake-all markets The goal-directed actions managers take in their quest for competitive advantage when competing in a single product market - Business-level strategy Business level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent tradeoffs - Blue ocean strategy Generic business strategy that seeks to create the same or similar value for customers at a lower cost - Cost-leadership strategy Generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs - Differentiation strategy Increases in cost per unit when output increases - Diseconomies of scale Decreases in cost per unit as output increases - Economies of scale Savings that come from producing two or more outputs at less cost than producing each output individually, despite using the same resources and technology - Economies of scope Output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest-cost position that is achievable through economies of scale - Minimum efficient scale (MES) Choices between a cost or value position. Such choices are necessary because higher value creation tends to generate higher cost - Strategic trade-offs A new product which known components, based on existing technologies, are reconfigured In a novel way to attack new markets - Architectural innovation An innovation that leverages new technologies to attack existing markets from the bottom up - Disruptive innovation