MQM 385 Actual Questions and Correct Answers
Q1
If a first mover does not have complementary assets, barriers to imitation are high, and there
are several capable competitors, the first mover should license the innovation to others. enter
into a joint venture to protect the product. produce the product itself. sell the technology
outright to another firm. wait until competitors develop an alternative product.
Answer: b. enter into a joint venture to protect the product.
Q2
Which of the following is not a basic strategy for a first mover? Develop and market the
innovation itself Develop and market the innovation jointly with other companies through a
strategic alliance or joint venture License the innovation to others Discourage development of
complementary assets All of these choices
Answer: d. Discourage development of complementary assets
Q3
If a first mover has complementary assets, barriers to imitation are high, and capable
competitors are few, the first mover should license the innovation to others. develop and
market the innovation jointly with other companies through a strategic alliance or joint venture.
develop and market the innovation itself. sell the technology outright to another firm. wait until
competitors develop an alternative product.
Answer: c. develop and market the innovation itself
Q4
If a first mover does not have complementary assets, barriers to imitation are low, and there
are many capable competitors, the first mover should license the innovation to others. enter
into a joint venture to protect the product. produce the product itself. sell the technology
outright to another firm. wait until competitors develop an alternative product.
Answer: a. license the innovation to others.
Q5
A technological paradigm shift is most likely to occur in which stage of the industry life cycle?
Embryonic Growth Shakeout Maturity Decline
Answer: d. Maturity
, Q6
Consumers will bear the costs of switching technologies when the benefits of adopting the new
technology outweigh the costs of switching. switching costs are substantial. switching costs are
reimbursed by makers of a product. all of these choices. none of these choices.
Answer: a. the benefits of adopting the new technology outweigh the costs of
switching
Q7
Cell phone technology is replacing traditional wired phone technology. This is an example of
a(n) first-mover advantage. technological paradigm shift. format war. complementary product.
embryonic industry.
Answer: b. technological paradigm shift
Q8
Which of the following will not help an established company in addressing the potential
challenge of a disruptive technology? Access to knowledge about how disruptive technologies
can revolutionize markets Investing in newly emerging technologies that may ultimately
become disruptive technologies Anticipating and planning for how disruptive technology will
change business Distinctive competencies in the current business model Understanding that a
disruptive technology will require a radically different value chain with a different cost structure
Definition
Answer: d. Distinctive competencies in the current business model
Q9
Technological disruption typically happens slowly. is usually begun by the industry leaders.
affects mostly small niche markets. causes firms to adopt a new business model. is a problem
primarily in embryonic industries.
Answer: d. causes firms to adopt a new business model
Q10
Which of the following factors is a disadvantage of being a first mover? First movers have to
bear pioneering costs. First movers are prone to make mistakes. First movers run the risk of
building the wrong resources and capabilities. First movers may invest in inferior or obsolete
technology. All of these choices.
Answer: e. all of these choices
Q1
If a first mover does not have complementary assets, barriers to imitation are high, and there
are several capable competitors, the first mover should license the innovation to others. enter
into a joint venture to protect the product. produce the product itself. sell the technology
outright to another firm. wait until competitors develop an alternative product.
Answer: b. enter into a joint venture to protect the product.
Q2
Which of the following is not a basic strategy for a first mover? Develop and market the
innovation itself Develop and market the innovation jointly with other companies through a
strategic alliance or joint venture License the innovation to others Discourage development of
complementary assets All of these choices
Answer: d. Discourage development of complementary assets
Q3
If a first mover has complementary assets, barriers to imitation are high, and capable
competitors are few, the first mover should license the innovation to others. develop and
market the innovation jointly with other companies through a strategic alliance or joint venture.
develop and market the innovation itself. sell the technology outright to another firm. wait until
competitors develop an alternative product.
Answer: c. develop and market the innovation itself
Q4
If a first mover does not have complementary assets, barriers to imitation are low, and there
are many capable competitors, the first mover should license the innovation to others. enter
into a joint venture to protect the product. produce the product itself. sell the technology
outright to another firm. wait until competitors develop an alternative product.
Answer: a. license the innovation to others.
Q5
A technological paradigm shift is most likely to occur in which stage of the industry life cycle?
Embryonic Growth Shakeout Maturity Decline
Answer: d. Maturity
, Q6
Consumers will bear the costs of switching technologies when the benefits of adopting the new
technology outweigh the costs of switching. switching costs are substantial. switching costs are
reimbursed by makers of a product. all of these choices. none of these choices.
Answer: a. the benefits of adopting the new technology outweigh the costs of
switching
Q7
Cell phone technology is replacing traditional wired phone technology. This is an example of
a(n) first-mover advantage. technological paradigm shift. format war. complementary product.
embryonic industry.
Answer: b. technological paradigm shift
Q8
Which of the following will not help an established company in addressing the potential
challenge of a disruptive technology? Access to knowledge about how disruptive technologies
can revolutionize markets Investing in newly emerging technologies that may ultimately
become disruptive technologies Anticipating and planning for how disruptive technology will
change business Distinctive competencies in the current business model Understanding that a
disruptive technology will require a radically different value chain with a different cost structure
Definition
Answer: d. Distinctive competencies in the current business model
Q9
Technological disruption typically happens slowly. is usually begun by the industry leaders.
affects mostly small niche markets. causes firms to adopt a new business model. is a problem
primarily in embryonic industries.
Answer: d. causes firms to adopt a new business model
Q10
Which of the following factors is a disadvantage of being a first mover? First movers have to
bear pioneering costs. First movers are prone to make mistakes. First movers run the risk of
building the wrong resources and capabilities. First movers may invest in inferior or obsolete
technology. All of these choices.
Answer: e. all of these choices
