Chapter 9: Innovation and Competitiveness

Question 1

Entrepreneurial marketing

Answer 1

marketing strategy that is opportunity seeking, innovated, proactive, and controlled risk taking.

Question 2

innovation

Answer 2

creating something new and making it useful

Question 3

proactivity

Answer 3

doing something before others do it

Question 4

controlled risk taking

Answer 4

combination of knowing what risks really are, taking moderate risks in which the worst case is survivable, and finding ways to manage the risks to increase the chances of success while reducing the consequence of failure

Question 5

opportunity seeking

Answer 5

actively looking for opportunities and constantly evaluating how attractive prospective opportunities are

Question 6

controlled risk taking explained (3)

Answer 6

• minimize using resouces that are at risk
• gather info or run experiments
• change the rules of the market

Question 7

practical aspects for entrepreneurial orientation (4)

Answer 7

• hire people who are comfortable with entrepreneurship
• direct appropriate activities
• remove impediments
• provide incentive

Question 8

incremental innovations

Answer 8

take the existing product and offering and make small step improvements (iphone product line)
*exploitation

Question 9

radical innovations

Answer 9

produce large changes in the functions and performance of a product or offering (first iphone)
*exploration and exploration

Question 10

breakthrough innovations

Answer 10

create a different kind of product or offering that produces a new kind of value
printing press for books
*exploration

Question 11

sustaining innovation

Answer 11

improves the existing dominant technology, products, or offerings. serves the needs of higher-end customers who already purchase similar products but want more value

Question 12

disruptive innovation

Answer 12

product or business idea with new value that disrupts a market or industry

enter at the bottom then move up and displace established leaders (Amazon)

Question 13

implement disruptive innovation (5 steps)

Answer 13

1. separate self form existing company and look for new customers
2. address new/small business with small market size
3. use exploratory approach to find market
4. use process and decision making rules
5. develop markets that want offering

Question 14

time pacing

Answer 14

setting strict time tables for new versions of products, operations, strategies, and so on