Illinois State University

MQM 385

Ch. 2

1)when a product or service becomes more valuable as more people use it.

2. The degree to which complete information is available is known as                                                        .

3. Telecom firms failed to anticipate the impact of a technology known as

                                      , which enabled existing fiber to carry more transmissions than ever before.

4. The resource­based view of competitive advantage states that for a firm to maintain sustainable competitive advantage it must control a set of exploitable resources that have four critical characteristics. What are these characteristics?

5. Which of the following statements about technology is true?
6. A firm’s financial performance that consistently outperforms its industry’s peers is known as              .

7. Moving first pays off when the time lead is used to create:

8. How does the Internet typically impact price transparency and information asymmetry?

9. Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft’s Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that:

10. A strong brand can be an exceptionally powerful resource for competitive advantage by lowering           , proxying                                                      and inspiring                  .

11. The patent system is often considered to be unfairly stacked against start­ ups because:
12. Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supplier prices. FreshDirect buys direct from suppliers, eliminating any markup from a middleman. In addition to this, the firm employs other methods to get lower prices from suppliers. Which of the following is not a way FreshDirect helps suppliers in exchange for supplier agreement to offer it better pricing terms?

13. In                  , the light inside fiber is split into different signal­carrying wavelengths in a way similar to how a prism splits light into different colors.

14. If a new entrant hopes to attract customers from an established incumbent, the new entrant must ensure that the value they offer exceeds the incumbents’ value in addition to any perceived  .

15. Leveraging consumers to promote a product or service is known as                                                      .