Product lifecycle

Product innovation tends to be more common during which stage of the industry life cycle

Answer the following questions and then press 'Submit' to get your score.

Question 1

Innovation is defined as:

a) the commercialization of a new product or process.

b) the invention of a new product or process.

c) a new product or process idea.

d) the implementation of a new production method.

Question 2

Process innovation refers to:

a) the development of a new service.

b) the development of a new product.

c) the implementation of a new or improved production method.

d) the development of new products or services.

Question 3

Innovation can help to provide a temporary competitive advantage when:

a) barriers to entry are high.

b) barriers to imitation are low and intellectual property rights are difficult to enforce.

c) there are few other competitors.

d) barriers to entry are low.

Question 4

Following establishment of a dominant design in the product life cycle, what would you expect to happen?

a) Emphasis on product innovation rather than process innovation.

b) Emphasis on process innovation rather than product innovation.

c) Competition to increase as new firms enter the industry.

d) Competition to decrease as more firms exit than enter the industry.

Question 5

Established firms relative to new firms are better at:

a) all types of innovation.

b) innovation which is competence-enhancing.

c) innovation which is competence-destroying.

d) Innovation which is disruptive.

Question 6

In which markets are network effects likely?

a) Markets subject to increasing returns

b) 'Tippy' markets

c) Hi-tech product markets

d) All of the above

Question 7

Which of the following are valuable in a standards war?

a) Competitive advantage

b) Late mover advantage

c) Early mover advantage

d) Technological advantage

Question 8

The fundamental challenge of knowledge transfer in multinational firms is:

a) transferring explicit knowledge across borders.

b) transferring tacit knowledge across borders.

c) creating tacit knowledge in overseas subsidiaries.

d) transferring tacit and explicit knowledge across borders.

Question 9

What potential advantages can be gained from involving overseas subsidiaries in R&D activities?

a) Local subsidiaries offer financial advantages such as lower land and labour costs.

b) Local subsidiaries offer access to local companies.

c) Local subsidiaries offer access to technical knowledge and skills.

d) Local subsidiaries offer financial advantages as well as access to local markets, technical knowledge and skills.

Question 10

Outsourcing of innovation globally is more likely where:

a) Innovations are autonomous

b) Innovations are systemic

c) Innovations are systemic or autonomous

d) Innovations are made by service sector firms

What is innovation in product life cycle?

Every innovation goes through its own life cycle before it hits the market. From an idea, to a fully functioning, “ready to hit the market” product. This is known as the first stage of the Product Life Cycle-The Development stage. In this phase ideas are born and refined until they are ready to go to the next phase.

What are the 5 stages of industry life cycle?

An industry life cycle typically consists of five stages — startup, growth, shakeout, maturity, and decline. These stages can last for different amounts of time – some can be months, some can be years.

What are the stages of industry life cycle?

The four phases of an industry life cycle are the introduction, growth, maturity, and decline stages. Industries are born when new products are developed, with significant uncertainty regarding market size, product specifications, and main competitors.

What is the growth stage of the product life cycle?

Growth. During the growth stage, consumers have accepted the product in the market and customers are beginning to truly buy in. That means demand and profits are growing, hopefully at a steadily rapid pace. The growth stage is when the market for the product is expanding and competition begins developing.