Question

In: Operations Management

48. One way to maximize short term profits is to utilize an "Entry Deterring Pricing" strategy....

48. One way to maximize short term profits is to utilize an "Entry Deterring Pricing" strategy.
a) True
b) False

49. Each of the following is an advantage of being a "First Mover" in a market except:
a) The potential exists to develop switching costs
b) Entry barriers can be established
c) Early access to feedback
d) The potential exists to develop brand loyalty
e) The innovation is easily replicated

50. Industry standards can be developed by cooperation between competitors.
a) True
b) False

52. A major obstacle to the commercialization of a disruptive technology is that major customer groups are not interested in adopting them.
a) True
b) False

53. Porter's Diamond Model includes each of the following considerations except:
a) There should be intensity of local rivalry so as to drive efficient operations
b) There should be local demand for the products produced in the host country
c) There should be a competitive local supply base
d) A high level of local responsiveness by the business is necessary
e) The host country must have adequate factor endowments to offer

Solutions

Expert Solution

48- True, because Entry deterring price refers to producing higher quantity at a lower price than the monopoly level, this strategy is also known as limit pricing and it will help to increase short term profit.

49- Entry barriers can be established is not consider to be the advantages of Fist mover in the market. Entry barrier is a  obstacles that make it difficult to enter a given market and first mover refers to service or product that gains a competitive advantage by being the first to market with a product or service.

50- True, because indusrty Standards setting activities were traditionally characterized by either pure competition or cooperation activities.

52- True, because customer are the key factor of every business and disruptive technology meaning is  an innovation that significantly alters the way that consumers, industries, or businesses operate.

53- The host of the country must have adequate factor endowments to offer is not Porter Diaamond model because Porter diamond model includes-

- domestic group action is instrumental to international fight, since it forces firms to develop distinctive and property strenghts and capabilities.
-Competitive advantage results from the presence of foremost establishments that initial produce specialised factors so frequently work to upgrade them.
- The presence of refined demand conditions from native customers additionally pushes firms to grow, pioneer and improve quality.
- particularly suppliers ar crucial to enhancing innovation through a lot of economical and higher-quality inputs, timely feedback and short lines of communication


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