E&I Lecture: Innovation by incumbent firms

The Blue Ocean Strategy aims to beat competition while the Competitive Strat. aims to “sail around” competition

• True

• False

The Blue Ocean Strategy typically features two generic options: cost leadership and differentiation

• True

• False

According to Porter, a company should simultaneously follow differentiation and cost leadership

• True

• False

The Not-invented-here syndrome describes that a company thinks that only external players are successful inventors.

• True

• False

A company using a “pioneer” strategy may profit from a temporary monopoly

• True

• False

A main risk of “late follower” strategy is that estimations of market potential are difficult

• True

• False

Central factors for the innovation success of incumbent firms are culture, strategy and the organization (structure)

• True

• False

A brewery that keeps its recipe as a secret follows a closed innovation approach

• True

• False

In Ansoff's growth model, lateral diversification is typically associated with more risk than product development.

• True

• False

Due to changing conditions, companies in more and more industries have to apply an open innovation approach.

• True

• False