What Goes Up, Can't Go Down
50 questions available
Questions
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?
View answer and explanationAs 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?
View answer and explanationBased 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?
View answer and explanationWhat does Chapter 4 identify as the root of companies' upward mobility and downward immobility?
View answer and explanationIn 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?
View answer and explanationAccording 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?
View answer and explanationWhat 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?
View answer and explanationIn the context of the steel industry, minimills initially entered the market by producing what low-quality, low-margin product?
View answer and explanationBy what year had steel minimills captured approximately 90 percent of the rebar market?
View answer and explanationWhat was the response of integrated steel mills like Bethlehem Steel and USX as minimills attacked the lower tiers of the market?
View answer and explanationWhat does Joseph Bower's model of resource allocation, cited on page 94, suggest about how most proposals to innovate are generated?
View answer and explanationWhy are middle managers often reluctant to back projects for disruptive technologies, according to Chapter 4?
View answer and explanationWhat was the capital cost to build a cost-competitive steel minimill in 1995?
View answer and explanationBy 1996, what percentage of the North American sheet steel market had Nucor captured with its disruptive thin-slab casting facility?
View answer and explanationThe chapter concludes that the 'northeasterly migration' of integrated steel companies was a story of:
View answer and explanationWhat is the 'asymmetric mobility' described on page 92?
View answer and explanationAccording to the hedonic regression analysis summarized in Chapter 2 but referenced on page 94, what did higher-end markets consistently pay for?
View answer and explanationWhat is the 'wheel of retailing' phenomenon, described by Professor Malcom P. McNair in the chapter notes?
View answer and explanationIn 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?
View answer and explanationHow did the gross margins of 8-inch drive makers compare to the requirements for firms in the minicomputer market they served?
View answer and explanationWhat market share did minimills command in the North American steel market by 1985?
View answer and explanationWhat does the chapter describe as a 'powerful magnet in the northeast corner of the disk drive and excavator trajectory maps'?
View answer and explanationWhat paradox does the chapter highlight regarding the failure of integrated steel mills?
View answer and explanationWhat three factors create powerful barriers to downward mobility for established firms?
View answer and explanationWhat was the result of Bethlehem Steel's investments in high-quality sheet steel production during the 1980s on its market value?
View answer and explanationWhich company made the bold move into thin-slab casting, a disruptive technology that established integrated mills had carefully evaluated but rejected?
View answer and explanationWhy was thin-slab casting technology initially unattractive to integrated steel mills' most profitable customers?
View answer and explanationWhat is the chapter's final conclusion about the root cause of the failures it describes?
View answer and explanationIn 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?
View answer and explanationWhat is the 'most vexing managerial aspect' of the problem of asymmetric mobility described on page 97?
View answer and explanationAccording 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?
View answer and explanationWhat does the author identify as an 'important strategic implication' of the rational pattern of upmarket movement on page 101?
View answer and explanationIn the minimill steel example, what was the primary difference in raw materials between integrated mills and minimills?
View answer and explanationWhy were integrated steel makers 'almost relieved to be rid of the rebar business' when minimills entered?
View answer and explanationWhy does the chapter argue that firms are 'held captive to their needs' and not just their customers?
View answer and explanationWhen Seagate's median capacity was squarely positioned in the desktop segment between 1983 and 1985, what was its general product strategy?
View answer and explanationWhat does the chapter say about the proposals that don't clear the hurdles of a firm's resource allocation system?
View answer and explanationHow did Nucor view the rebar market compared to the integrated mills?
View answer and explanationWhat type of product proposals will 'always win' in the tug-of-war for development resources in a well-run company?
View answer and explanationWhat key advantage did minimills have over integrated mills that allowed them to be profitable in the low-end rebar market?
View answer and explanationWhich of these disk drive companies was NOT mentioned on page 100 as having missed the 5.25-inch generation by moving upmarket?
View answer and explanationWhat was the labor-hour per ton efficiency of the most efficient minimill in 1995?
View answer and explanationHow much more costly was it to build a competitive integrated steel mill compared to a minimill in 1995?
View answer and explanationWhat does the author suggest is the primary reason for the 'downward immobility' of established firms?
View answer and explanationWhich 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?
View answer and explanationWhen did Nucor build its first continuous thin-slab casting facility in Crawfordsville, Indiana?
View answer and explanationWhat was the approximate cost that USX and Bethlehem Steel elected to invest in conventional thick-slab casters instead of the disruptive thin-slab technology?
View answer and explanationAccording to the chapter, why do well-run companies populated by well-trained employees still fail to pursue disruptive technologies?
View answer and explanationAs described on page 101, minimills are named for what reason?
View answer and explanationWhat does the author suggest is one of the most important achievements of any well-managed company, which paradoxically contributes to the innovator's dilemma?
View answer and explanation