Chapter 7 pt 2 - Test 2 Flashcards
1
Q
Technology Enthusiasts
A
- Enter the market during the introductory stage
- Have an engineering mind
- Proactively pursue new technology
- Smallest market segment (2.5%)
2
Q
Early Adopters
A
- Enter the market during the growth stage
- Demand is driven by imagination and creativity
- Directly communicate the product’s potential
3
Q
Early Majority
A
- Enter the market during the shakeout stage
- This group is key to catching the growth wave
4
Q
Late Majority
A
- Enter the market during the maturity stage
- Represent the majority of the market
- Typically buy from well-established firms with a strong brand
5
Q
Laggards
A
- Enter the market during the decline stage
- Demand is small
6
Q
New Market, New Technologies
A
Radical Innovation
7
Q
New Market, Existing Technologies
A
Architectural Innovation
8
Q
Existing Market, New Technologies
A
Disruptive Innovation
9
Q
Existing Market, Existing Technologies
A
Incremental Innovation
10
Q
Incremental Innovation
A
- Builds on established knowledge
- Results from steady improvement
11
Q
Radical Innovation
A
An entirely new knowledge base or recombination of
existing knowledge that targets new markets and
technology
12
Q
Why Incumbent Firms Tend to Focus on Incremental Innovation
A
- Economic Incentives
- Organizational Inertia
- Innovation Ecosystem
13
Q
Innovation Ecosystem
A
They rely on certain suppliers, buyers, complementors
14
Q
Organizational Inertia
A
They have formalized processes and structures
15
Q
Economic Incentives
A
They must defend their position
