Chapter 1-6 Strategic Management of Technological Innovation Questions with Answers
technological innovation relation to competition - correct answers the most important driver of
competitive success
Firms in many industries depend on products developed within the past __ years for almost ___.
Example: Johnson and Johnson - correct answers5 years. 1/3 (or more) of their sales and profit
technological innovation - correct answers The act of introducing a new device, method, or material for
application to commercial or practical objectives.
What has driven the rising importance of innovation - correct answers1. Globalization of markets
2. Advances in information technology
Why is there a pressure for firms to continuously innovate? Who is applying this pressure? - correct
answer sBecause there is a greater need to produce differentiated products/ services. Foreign
competition
Introducing new products helps firms ____, while investing in process innovations helps firms lower their
___ - correct answers protect their margins. lower their costs
What impact has computer-aided design and computer-aided manufacturing had on firms ? - correct
answersmade it easier / faster for firms to design and produce new products
What impact has flexible manufacturing technologies had on firms' shorter production runs ? - correct
answersThese flexible manufacturing technologies have made it more economical and reduced the
importance of production economies of scale (????)
How do firms achieve differentiation from competitors? - correct answersThey utilize technologies to
develop and produce more product variants that closely meet the needs of narrowly defined customer
groups.
How has Toyota achieved differentiation from competitors - correct answersToyota (in 2021) offered
dozens of different passenger vehicle lines under the Toyota Brand. Within each of the vehicle lines,
, Toyota also offered several different models (Camry L, Camry LE, Camry SE), with different features
(Seating options) and at different price points. Also, produced a range of Luxury vehicles under LEXUS.
How has Samsung achieved differentiation from competitors - correct answersin 2021, Samsun produced
more than 43 unique smartphones, ranging in price.
What can help companies ensure they penetrate almost every conceivable market niche. - correct
answersusing broad portfolios of product models
flexible manufacturing technologies enable firms to ___ - correct answersseamlessly transition from
producing one product model to the next, adjusting production schedules with real-time information on
demand
What is another way firms reduce production costs? - correct answersUsing components in many of the
models
What has triggered an industry-wide shift to shortened development cycles and more rapid new product
introductions? - correct answersBig firms such as Toyota and Samsung have adopted new technologies
and increased their pace for innovation
What is the result of firms adopting new technologies and increasing their pace for innovation - correct
answersgreater market segmentation (!!!) and rapid product obsolescence (???)
Product cycle is defined as - correct answersthe time between a product's introduction and its
withdrawal from the market or replacement by a next-generation product.
Product life cycle for software - correct answers4-12 months
Product life cycle for computer hardware and consumer electronics - correct answers12-24 months
Product life cycle for home appliances - correct answers18-36 months
technological innovation relation to competition - correct answers the most important driver of
competitive success
Firms in many industries depend on products developed within the past __ years for almost ___.
Example: Johnson and Johnson - correct answers5 years. 1/3 (or more) of their sales and profit
technological innovation - correct answers The act of introducing a new device, method, or material for
application to commercial or practical objectives.
What has driven the rising importance of innovation - correct answers1. Globalization of markets
2. Advances in information technology
Why is there a pressure for firms to continuously innovate? Who is applying this pressure? - correct
answer sBecause there is a greater need to produce differentiated products/ services. Foreign
competition
Introducing new products helps firms ____, while investing in process innovations helps firms lower their
___ - correct answers protect their margins. lower their costs
What impact has computer-aided design and computer-aided manufacturing had on firms ? - correct
answersmade it easier / faster for firms to design and produce new products
What impact has flexible manufacturing technologies had on firms' shorter production runs ? - correct
answersThese flexible manufacturing technologies have made it more economical and reduced the
importance of production economies of scale (????)
How do firms achieve differentiation from competitors? - correct answersThey utilize technologies to
develop and produce more product variants that closely meet the needs of narrowly defined customer
groups.
How has Toyota achieved differentiation from competitors - correct answersToyota (in 2021) offered
dozens of different passenger vehicle lines under the Toyota Brand. Within each of the vehicle lines,
, Toyota also offered several different models (Camry L, Camry LE, Camry SE), with different features
(Seating options) and at different price points. Also, produced a range of Luxury vehicles under LEXUS.
How has Samsung achieved differentiation from competitors - correct answersin 2021, Samsun produced
more than 43 unique smartphones, ranging in price.
What can help companies ensure they penetrate almost every conceivable market niche. - correct
answersusing broad portfolios of product models
flexible manufacturing technologies enable firms to ___ - correct answersseamlessly transition from
producing one product model to the next, adjusting production schedules with real-time information on
demand
What is another way firms reduce production costs? - correct answersUsing components in many of the
models
What has triggered an industry-wide shift to shortened development cycles and more rapid new product
introductions? - correct answersBig firms such as Toyota and Samsung have adopted new technologies
and increased their pace for innovation
What is the result of firms adopting new technologies and increasing their pace for innovation - correct
answersgreater market segmentation (!!!) and rapid product obsolescence (???)
Product cycle is defined as - correct answersthe time between a product's introduction and its
withdrawal from the market or replacement by a next-generation product.
Product life cycle for software - correct answers4-12 months
Product life cycle for computer hardware and consumer electronics - correct answers12-24 months
Product life cycle for home appliances - correct answers18-36 months
