Illinois State University

MQM 385

Ch. 6

1)_______refers to the: long­term viability of a product or service.

2. Uber and PayPal used similar strategies when trying to jumpstart network effects that were vital in creating their dominance. What did each do?

3. The video game console market offers important lessons for the strategist. The video game console market is a network market in which Sony’s PlayStation 2 (PS2) dominated over Microsoft’s Xbox offering. This has been possible due to:

4. Apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that:

5. Windows OS, the iPhone, the Wii, and Facebook’s application programming interfaces allow for the development and integration of complementary goods by third parties. Based on this evidence, all these products or services are said to be

            .

6.                  is said to occur when one market attempts to conquer a new market by making it a subset, component, or feature of its primary offering.

7. Which of the following factors represents one of the sources of value derived from network effects?

8. While Sony and Microsoft focused on the graphics and raw processing power favored by hard­core male gamers, Nintendo chose to develop a machine to appeal to families, women, and age groups that normally shunned violent games. The strategy adopted by Nintendo in this example is the           strategy.

9. Microsoft’s Live Maps and Virtual Earth 3D was a late entrant to the Internet mapping game. Users had already put in countless hours building resources that