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MIE 480 Exam 2 updated version verified source
1.
Industries evolve through life cycle stages because:
firms develop new
knowledge about
how to create value. demand for the industry's products and services grows
2. Industries mature when demand begins to slow
down. Often this is because the market is , meaning there are few new
customers to bring into the
industry: saturated
3.
Innovation results in a wide variety of products or services in the
introduc-
tion stage of
the
industry
life
cycle
because:
early entrants are trying to
figure out which bundle
of characteristics customers prefer.
4. Products or services that have a relationship with and can affect
the value of a company's own products or services are known as:
complements
5.
Which of the
following is not
one of the
industry life cycle
stages?:
shakeout
6. As an alternative to decline, the renewal of an entire industry
depends solely on its ability to shift to complementary products or
services: false
7. Being a first mover in an industry or market guarantees that a
company will develop a sustainable strategic position: false
8. In the maturity stage of the industry life cycle companies shift value
creation activities toward identifying cost efficiencies: true
9. Standardization is an industry condition in which companies tend to
adopt identical manufacturing processes because of intense rivalry.:
false
10. Value creation in the introduction stage of the industry life
cycle occurs internally through product design and externally by
building upstream and downstream relationships.: true
11. A company that chooses to pursue
a business-level strategy in which it targets a narrow geographic area
or a limited group of customers who have particular needs is following
a strategy: focus
12. A company that simultaneously pursues the two basic
competitive ap-proaches but ends up with costs that are too high and
a product that does
not command a premium price may find itself: stuck
in the middle
13. T
