Question: Incumbent firms favor incremental innovation over radical innovation because:

Answer: radical innovation tends to disrupt the existing power distribution within the firms.

Question: A factor favoring the success of disruptive innovation is that:

Answer: incumbent firms are slow to change.

Question: Why is it easier for new entrants to develop radical innovations when compared to incumbent firms?

Answer: Unlike incumbent firms, new entrants do not have formal organizational structures and processes.

Question: In a radical innovation, a firm targets:

Answer: new markets by using new technologies.

Question: Which of the following is one of the reasons that led to CNN, an innovator, losing its leadership position in the 24-hour cable news industry?

Answer: The second movers imitated CNN’s incremental innovation to continuously improve their offering.

Question: SyncTouch Inc. is a manufacturer of cell phones. It has released an improved version of its smartphone in markets in which the company already operates. Which of the following types of innovations does this scenario best illustrate?

Answer: Incremental innovation

Question: Which of the following is true of a disruptive innovation?

Answer: It targets existing markets.

Question:

Answer: Architectural innovation