BA 466 FINAL EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
How to Achieve an Integrated Strategy (7) - ANSWER - Focused Differentiation
- Economies of Scope
- Brand Halo Effects
- Relative Market Power (- Unique, Historical Identity - Financial Resources, Scale - Network
Externalities)
- Large, Highly segmented Market
- Product Technology Superiority
- Substantial Process Technology Superiority (- Flexible Manuf. Systems - Superior Info
Systems - Total Quality Management)
Technological Discontinuity is what? What are 2 examples of it & their definitions? - ANSWER
-Creative Destruction
- Product substitution- a radically new product technology
-Product Improvement- an incrementally new product
Industry Life Cycle 2 Disruption type examples - ANSWER - Technological Discontinuity
- Institutional Change
Institutional Change definition - ANSWER Market Creation through a major regulatory or
,cultural change
Early Mover Advantages (6) - ANSWER -brand loyalty
- economies of scale and learning effects
- switching costs
- product knowledge & patents
-locking up distribution channels & suppliers
- network effects and positive feedback loops
Network externalities/ positive feedback loops definition - ANSWER Products can become
more valuable to all users when other users adopts it
Direct network externalities example - ANSWER social networking products (facebook, xbox
live)
Indirect network externalities - ANSWER Hardware technology standards that depend on
software (Ipod, etc)
Market Dependence definition - ANSWER To what degree does the fixation business unit
influence other business units?
Market Commonality question posed - ANSWER Would multipoint competition reduce
, competitor's aggression?
Early Mover Disadvantages (4) - ANSWER 1) Pioneering costs
2) Quality assurance mistakes
3) Investment in obsolete technology
4) Plunging into the chasm
Pioneering Costs definition & 2 examples - ANSWER -Later entrants 'free-ride' on
first-mover's investments
- R&D costs
- Customer Education Costs
Quality Assurance Mistakes Result in (3) - ANSWER - Brand damage
- Lawsuits
- Recalls
Investment in obsolete technology - ANSWER If the underlying technology is advancing
rapidly, Late entrants may be able to 'leap frog' the technology.
Plunging into the chasm - ANSWER Mass-market may differ from the needs of early adopters
(E.g. America Online AOL)
COMPLETE SOLUTIONS
How to Achieve an Integrated Strategy (7) - ANSWER - Focused Differentiation
- Economies of Scope
- Brand Halo Effects
- Relative Market Power (- Unique, Historical Identity - Financial Resources, Scale - Network
Externalities)
- Large, Highly segmented Market
- Product Technology Superiority
- Substantial Process Technology Superiority (- Flexible Manuf. Systems - Superior Info
Systems - Total Quality Management)
Technological Discontinuity is what? What are 2 examples of it & their definitions? - ANSWER
-Creative Destruction
- Product substitution- a radically new product technology
-Product Improvement- an incrementally new product
Industry Life Cycle 2 Disruption type examples - ANSWER - Technological Discontinuity
- Institutional Change
Institutional Change definition - ANSWER Market Creation through a major regulatory or
,cultural change
Early Mover Advantages (6) - ANSWER -brand loyalty
- economies of scale and learning effects
- switching costs
- product knowledge & patents
-locking up distribution channels & suppliers
- network effects and positive feedback loops
Network externalities/ positive feedback loops definition - ANSWER Products can become
more valuable to all users when other users adopts it
Direct network externalities example - ANSWER social networking products (facebook, xbox
live)
Indirect network externalities - ANSWER Hardware technology standards that depend on
software (Ipod, etc)
Market Dependence definition - ANSWER To what degree does the fixation business unit
influence other business units?
Market Commonality question posed - ANSWER Would multipoint competition reduce
, competitor's aggression?
Early Mover Disadvantages (4) - ANSWER 1) Pioneering costs
2) Quality assurance mistakes
3) Investment in obsolete technology
4) Plunging into the chasm
Pioneering Costs definition & 2 examples - ANSWER -Later entrants 'free-ride' on
first-mover's investments
- R&D costs
- Customer Education Costs
Quality Assurance Mistakes Result in (3) - ANSWER - Brand damage
- Lawsuits
- Recalls
Investment in obsolete technology - ANSWER If the underlying technology is advancing
rapidly, Late entrants may be able to 'leap frog' the technology.
Plunging into the chasm - ANSWER Mass-market may differ from the needs of early adopters
(E.g. America Online AOL)
