Key Terms
True or False
Examples
WILD CARD
Summary of Chapter
100
A set of technical specifications that producers adhere to when making the product or a component of it
What is Technical Standards
100
The various strategies that companies should adopt in order to win format wars are centered upon finding ways to make network effects work in their favor & against their competitors.
What is TRUE
100
Give an example of a company that was recently a Capable Competitor
What is ........
100
Standards set by government or industry associations fall into the category of what?
What is Public Domain
100
Important in many high-tech industries: they guarantee compatibility, reduce confusion in the minds of customers, allow for mass production and lower costs, and reduce the risks associated with supplying complementary products
What is Technical Standards
200
Battles to control the source of differentiation and thus the value that such differentiation can create for the customer
What is Format wars
200
Killer Applications are applications or uses of a new technology or product that are so compelling that customers adopt them in droves, killing the competing formats
What is TRUE
200
DAILY DOUBLE
Explain 1 advantage and 1 disadvantage of being a first mover. pg 245
200
What is the course title and number (example BUS 100)
What is Stragetic Managenment BUS 409
200
Determines which standard will dominate a market
What is network effects and positive feedback loops
300
Common set of features or design characteristics
What is Dominant design
300
Competitive pricing is when you price the product low in order to stimulate demand and pricing complements high
What is FALSE (Razor and Blade Strategy)
300
Give an example of a company using a razor and blade strategy
What is ......
300
Specifications producers adhere to when making a product
What is Standards
300
Characterized by high fixed costs of development but very low or zero marginal costs of development but very low or zero marginal costs of producing one extra unit of output.
What is High-tech products
400
Government or association set standards of knowledge or technology that any company can freely incorporate into its product
What is public domain
400
If a company can shift from a cost structure where it encourages increasing marginal costs to one where fixed costs may be high but marginal costs are much lower, its profitability may decrease.
What is FALSE (Increase)
400
Give an example why public domain is good for businesses?
What is because any company can incorporate any of that knowledge or technology into their product
400
DAILY DOUBLE
What technology gets its start away from the mainstream of a market and then as its functionality improves over time which then invades the main market
400
Established companies can deal with _____ by investing technology or setting up a stand alone division to exploit the technology
What is Paradigm Shifts
500
The network of complementary products as a primary determinant of the demand for an industry's product
What is Network effects
500
market leaders is when you lead competitive disadvantages associated with being first
What is FALSE (First mover disadvantages)
500
Give an example of a company that is a "first mover"
What is ....
500
Who is Charles W.L. Hill ?
What is the author of our textbook
500
These shifts are more likely to occur when progress in improving the established technology is slowing because of diminishing returns & when a new disruptive technology is taking root in a market niche
What is Technological paradigm shifts
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