Question: When a company introduces a new product or process or business model with the intent of gaining a competitive advantage, that company is engaging in ______.

cost control

franchising

branding

innovation

Answer: innovation

Question: True or false: Innovation can create value for one firm while destroying value for another.

Answer: T

Question: A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as _____.

the shakeout stage

the long tail

the short leash

strategic entrepreneurship

Answer: the long tail

Question:

Answer: Innovation is a powerful weapon for gaining and maintaining competitive advantage.

Question: Which are the four steps of the innovation process?

invention

imitation

innovation

instigation

imagination

idea

Answer: idea

invention

innovation

imitation

Question: Innovation can ______. (Select all that apply.)

only be achieved by government agencies

never be a basis for competitive advantage

provide firms with a competitive advantage

make existing products or businesses obsolete

Answer: provide firms with a competitive advantage

make existing products or businesses obsolete

Question: What does the innovation process begin with?

an idea

an innovation

an imitation

an invention

Answer: an idea

Question: Which of the following is a primary factor in avoiding creative destruction?

mergers and acquisitions

branding

innovation

stock options

Answer: innovation

Question:

Answer: Apple combining smart phone and wristwatch technologies to create the Apple Watch

Question:

Answer: A large amount of revenue derived from a small number of units among almost unlimited choices