Library/Business/The Innovator's Dilemma/What Goes Up, Can't Go Down

What Goes Up, Can't Go Down

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Questions

Question 1

According to Chapter 4, what is the primary reason that prospects for growth and improved profitability in upmarket value networks often appear more attractive to well-managed companies?

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Question 2

As depicted in Figure 4.1, 'Upmarket Migration of Seagate Products', what was Seagate's strategic response when the disruptive 3.5-inch drive form invaded the desktop market from below between 1987 and 1989?

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Question 3

Based on Figure 4.2, what was the typical gross margin for the emerging 5.25-inch drive market in 1981, which established 8-inch drive makers were reluctant to enter?

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Question 4

What does Chapter 4 identify as the root of companies' upward mobility and downward immobility?

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Question 5

In the hypothetical conversations on page 96, why does the proposal for a higher-capacity, higher-speed disk drive sound more appealing to the manager than the one for a cheaper, smaller, lower-capacity drive?

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Question 6

According to the case of the 1.8-inch disk drive, what was the projected market volume for 1995, which the CEO of a large drive company dismissed?

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Question 7

What sector did the student in the Harvard MBA case discussion find a use for a 1.8-inch disk drive, a market that large drive makers were overlooking?

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Question 8

In the context of the steel industry, minimills initially entered the market by producing what low-quality, low-margin product?

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Question 9

By what year had steel minimills captured approximately 90 percent of the rebar market?

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Question 10

What was the response of integrated steel mills like Bethlehem Steel and USX as minimills attacked the lower tiers of the market?

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Question 11

What does Joseph Bower's model of resource allocation, cited on page 94, suggest about how most proposals to innovate are generated?

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Question 12

Why are middle managers often reluctant to back projects for disruptive technologies, according to Chapter 4?

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Question 13

What was the capital cost to build a cost-competitive steel minimill in 1995?

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Question 14

By 1996, what percentage of the North American sheet steel market had Nucor captured with its disruptive thin-slab casting facility?

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Question 15

The chapter concludes that the 'northeasterly migration' of integrated steel companies was a story of:

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Question 16

What is the 'asymmetric mobility' described on page 92?

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Question 17

According to the hedonic regression analysis summarized in Chapter 2 but referenced on page 94, what did higher-end markets consistently pay for?

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Question 18

What is the 'wheel of retailing' phenomenon, described by Professor Malcom P. McNair in the chapter notes?

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Question 19

In the case of the 1.8-inch drive, why was the CEO of the large company so certain there was no market, despite evidence to the contrary?

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Question 20

How did the gross margins of 8-inch drive makers compare to the requirements for firms in the minicomputer market they served?

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Question 21

What market share did minimills command in the North American steel market by 1985?

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Question 22

What does the chapter describe as a 'powerful magnet in the northeast corner of the disk drive and excavator trajectory maps'?

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Question 23

What paradox does the chapter highlight regarding the failure of integrated steel mills?

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Question 24

What three factors create powerful barriers to downward mobility for established firms?

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Question 25

What was the result of Bethlehem Steel's investments in high-quality sheet steel production during the 1980s on its market value?

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Question 26

Which company made the bold move into thin-slab casting, a disruptive technology that established integrated mills had carefully evaluated but rejected?

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Question 27

Why was thin-slab casting technology initially unattractive to integrated steel mills' most profitable customers?

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Question 28

What is the chapter's final conclusion about the root cause of the failures it describes?

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Question 29

In the hypothetical dialogue on pages 96-97, what does the engineer with the downmarket disruptive idea say when asked if he has run the idea past any potential customers?

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Question 30

What is the 'most vexing managerial aspect' of the problem of asymmetric mobility described on page 97?

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Question 31

According to Figure 4.2 on page 93, how did the market size of 14-inch drives compare to the emerging 3.5-inch drive market in 1986?

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Question 32

What does the author identify as an 'important strategic implication' of the rational pattern of upmarket movement on page 101?

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Question 33

In the minimill steel example, what was the primary difference in raw materials between integrated mills and minimills?

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Question 34

Why were integrated steel makers 'almost relieved to be rid of the rebar business' when minimills entered?

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Question 35

Why does the chapter argue that firms are 'held captive to their needs' and not just their customers?

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Question 36

When Seagate's median capacity was squarely positioned in the desktop segment between 1983 and 1985, what was its general product strategy?

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Question 37

What does the chapter say about the proposals that don't clear the hurdles of a firm's resource allocation system?

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Question 38

How did Nucor view the rebar market compared to the integrated mills?

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Question 39

What type of product proposals will 'always win' in the tug-of-war for development resources in a well-run company?

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Question 40

What key advantage did minimills have over integrated mills that allowed them to be profitable in the low-end rebar market?

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Question 41

Which of these disk drive companies was NOT mentioned on page 100 as having missed the 5.25-inch generation by moving upmarket?

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Question 42

What was the labor-hour per ton efficiency of the most efficient minimill in 1995?

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Question 43

How much more costly was it to build a competitive integrated steel mill compared to a minimill in 1995?

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Question 44

What does the author suggest is the primary reason for the 'downward immobility' of established firms?

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Question 45

Which historical business figure's theory of the 'wheel of retailing' is cited as a parallel to the upmarket migration seen in the disk drive and steel industries?

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Question 46

When did Nucor build its first continuous thin-slab casting facility in Crawfordsville, Indiana?

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Question 47

What was the approximate cost that USX and Bethlehem Steel elected to invest in conventional thick-slab casters instead of the disruptive thin-slab technology?

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Question 48

According to the chapter, why do well-run companies populated by well-trained employees still fail to pursue disruptive technologies?

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Question 49

As described on page 101, minimills are named for what reason?

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Question 50

What does the author suggest is one of the most important achievements of any well-managed company, which paradoxically contributes to the innovator's dilemma?

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