ch.7 Innovation and Strategic Entrepreneurship

Question 1

Define innovation and describe its role in the competitive process.

Answer 1

innovation is the commercialization of an invention.
1. it allows for growth, redefining the market place, drives competition.
introducing new goods/service opportunity to get a monopoly

Question 2

Describe competitive implications of different stages in the industry life cycle

Answer 2

1. innovation means new industries, the four cycles in the life are
2. intro,growth,maturity, decline
3. measure adoption rates and competitive implications

Question 3

Diffuse

Answer 3

1. adoption by customers and immitation

Question 4

innovation 3 charactoristics

Answer 4

1. unique
2. novel
3. implemented: commercialized

Question 5

schumper gale of creative destruction

Answer 5

New ideas and existing products are lost

Question 6

1st in industry life cylce

Answer 6

introduction

1. R&D core competency
2. Focused on design, product innovation, expensive price,
3. Price is not the biggest thing: only few products, selling point is differentiation
4. Barriers to entry are high
5. Networking effect is key

Question 7

Network Effect

Answer 7

the value of something increases as more people are using it. More fax machines, means more faxing, more value

Question 8

2nd stage

Answer 8

Growth
“early majority”
1. Early majority of buyers increase growth rapidly
2. Dominant design: defines the product, and its design, and materials, manufacturing [STANDARD]
1. Manufacturing and marketing capabilities is core competency

Question 9

Product/Process innovation

Answer 9

increases size of market
product innovation= new product
process= making product more efficiency with a focus on R&D and cost, because more important after an industry standard

Question 10

Stage 3

Answer 10

Maturity

1. Large firms with economies of scale are surviving
2. Late majority: buyers and more limited market growth
3. Little room for differentiation, R&D is modification,
4. Incremental innovation, rate of growth platues
5. Industry consolidates around few player
   
   1. Price leadership
   2. Ologilopoly

Question 11

4th stage

Answer 11

Decline1. 
New product makes obsolete
2. Laggards: buyers and market size shrink
3. Four option, 
	1. Exit
	2. Harvest: stay w. limited investments
	3. Maintain: stay and continue marketing:(malboro)
	4. Consolidate: buy out rivals

Question 12

entrepreneurship

Answer 12

process of taking risk to innovate, to create new products,processes, and orginizations

Question 13

strategic enterpeneurship

Answer 13

the pursuit of innovation using the bullshit and gay tools of the amazing and not totally retard subject of strategic management.

1. entrepreneurs change agents for creative destruction
2. trick how to combine entrepreneur and strategic actions

Question 14

Type innovation

Answer 14

1. incremental
2. radical
3. architectural
4. disruptive