What was the estimated cost of Chrysler's electric minivan as cited in the chapter, compared to its gasoline-powered counterpart?

Correct answer: 100,000 dollars for the electric version, 22,000 dollars for the gasoline version.

Explanation

This quantitative question tests the reader's recall of specific data used in the chapter to emphasize the flawed logic of comparing a new disruptive technology directly with an established one in the mainstream market.

Other questions

Question 1

What is the primary purpose of Chapter 10, 'Managing Disruptive Technological Change: A Case Study'?

Question 2

According to the California Air Resources Board (CARB) mandate mentioned in the chapter, what percentage of unit sales did electric vehicles need to constitute for an automaker to sell cars in California starting in 1998?

Question 3

What is the first step the author proposes for a manager to take to determine if a technology like the electric car is disruptive?

Question 4

What cruising range is cited in the chapter for most electric vehicles at the time of writing?

Question 5

How does the acceleration of electric vehicles (0 to 60 mph) compare to gasoline-powered cars, according to the chapter?

Question 6

What is the author's primary argument for why electric vehicles should be considered a disruptive technology rather than a sustaining one?

Question 7

What is the first of the three findings from earlier chapters that the author proposes to apply in formulating a marketing strategy for electric vehicles?

Question 8

What does the author suggest is the only useful information about the market for a disruptive technology?

Question 9

Which potential early market for electric vehicles is suggested in the chapter based on the weakness of limited range being seen as a strength?

Question 10

Why does the author criticize Chrysler's strategy of positioning its electric minivan in the mainstream market?

Question 12

What is the third guiding criterion the author would instruct his design engineers to follow for creating an electric vehicle?

Question 13

Why does the author argue that a technological breakthrough in batteries is NOT required for the successful commercialization of electric vehicles?

Question 14

What is the author's recommended organizational strategy for a major automaker to commercialize the disruptive electric vehicle technology?

Question 15

Why would an independent organization help solve the problem that small markets don't solve the growth needs of large companies?

Question 16

What does the author suggest is the danger in the 'unequivocal call for spinning out an independent company'?

Question 17

Spinning out is an appropriate step only when a project is what?

Question 18

According to the analysis in Note 5, when was it projected that the cruising range of electric vehicles might intersect with the demands of the mainstream market?

Question 19

Why does the author suggest that the marketing plan for a disruptive technology must be 'a plan for learning, not one for executing a preconceived strategy'?

Question 20

What is the author's advice regarding resource allocation for the initial foray into a disruptive market?

Question 21

What does the author identify as the 'classic chicken-and-egg problem' in designing an initial disruptive product like an electric vehicle?

Question 22

The chapter suggests that the winning design in the first stages of the electric vehicle race will be characterized by what?

Question 23

What does the chapter say about the role of distribution channels for disruptive innovations?

Question 24

What specific reason is given for why a traditional car dealer might reject selling a disruptive electric vehicle?

Question 25

Why does the author argue that a manager should not be deterred by expert opinion averring that a major technological break-through is needed for electric vehicles?

Question 26

In the chapter's case study, what is one of the primary reasons given for creating a spin-off organization for the electric vehicle project?

Question 27

The author suggests that in the early years of the electric vehicle business, orders are likely to be denominated in what quantity?

Question 28

What does the author suggest would happen if his hypothetical electric vehicle program were viewed as nonessential to the organization's growth and profitability?

Question 29

The chapter suggests that the organizational structure for the electric vehicle project within the independent spin-off should be what?

Question 30

According to the chapter, why is it a mistake for managers to listen to their best customers when developing a disruptive technology?

Question 31

What was the specified annual rate of performance improvement for electric vehicles according to the analysis in Chapter 10?

Question 32

The author suggests that a second possible early market for electric vehicles, besides cars for teenagers, could be what?

Question 33

What is the primary reason that a marketing strategy based on a 'plan for learning' is so difficult for established firms to execute?

Question 34

The chapter states that the basis of competition and customer choice will shift away from functionality and performance toward other attributes when what happens?

Question 35

What is the second criterion the author would use to guide his design engineers in developing a disruptive electric vehicle?

Question 36

What does the author state is the first step in making the chart that involves defining current mainstream market needs for an EV?

Question 37

In the author's hypothetical marketing plan, what is the stance on using subsidies or government mandates to create a market?

Question 38

What was the weight of the batteries Chrysler had to pack into its electric minivan to position it for the mainstream market?

Question 39

The author states that his call for a spin-off is an 'unequivocal call' but that it should not be applied indiscriminately. In which situation is spinning out NOT the appropriate step?

Question 40

What is the author's view on the manager's role in the initial phase of commercializing a disruptive technology?

Question 41

What is the consequence of trying to force a disruptive technology to fit the needs of current, mainstream customers?

Question 42

Why does the author argue that 'failure' must be tolerated in the process of developing a disruptive technology?

Question 43

What impact does the author believe the pressure to generate significant profit for the mainstream company has on a disruptive project?

Question 44

According to the chapter, what is the best way to assess the possibility of disruption from a new technology?

Question 45

A statement from a Ford director mentioned on page 239 prices the Electric Ranger at 30,000 dollars and gives it what range?

Question 46

The author argues that historically, the very attributes that make disruptive technologies uncompetitive in mainstream markets become what?

Question 47

In the context of the chapter, what is wrong with an automaker's plan to make an electric vehicle by modifying an existing minivan platform?

Question 48

What does the author suggest is the reason for Chrysler marketers' pessimism about selling electric minivans in California?

Question 49

How does the author characterize the technology strategy for disruptive innovations?

Question 50

What is the final challenge the author addresses in his hypothetical plan after determining the product, marketing, technology, and distribution strategies?