Unit 3. Innovation Strategy (ITM)

Volkswagen, despite its reputation for reliability, was slow to adapt to the rise of electric vehicles, facing increasing pressure from more innovative competitors — a situation that clearly reflects an offensive innovation strategy.

• False

• True

Low levels of competition or the absence of potential entrants due to high entry barriers can hinder a company's incentive to innovate.

• False

• True

One of the key advantages of an offensive innovation strategy over a defensive one is that it allows a company to observe and learn from the mistakes of the technological leader, thereby improving the final performance of its product or service.

• False

• True

The metaverse refers to an evolving network of immersive, 3D virtual environment fully owned by Meta (formerly Facebook).

• False

• True

Most companies aim to adopt an offensive innovation strategy, since becoming the technological leader guarantees long-term survival and economic dominance.

• False

• True

Companies that pursue a defensive innovation strategy typically focus on the late early adopters and, in particular, the early majority, as these segments tend to prioritize reliability and proven performance in new products.

• False

• True

A traditional innovation strategy is typically suitable for companies with a weak technological position operating in markets with low technological attractiveness—for example, sectors with high entry barriers due to significant capital requirements, such as utilities (water, gas, electricity, etc.).

• False

• True

Vinted operates on a premium model where revenue primarily comes from transaction fees charged to buyers and sellers.

• False

• True

Technology products and services, Education, and Financial services ranked among the top 3 in the Digital Vortex Industry Ranking 2023, indicating that they are highly susceptible to digital disruption. As a result, these industries are more likely to see a higher number of companies adopting innovative strategies (e.g., offensive or defensive) compared to industries further down the ranking, such as energy and utilities, which ranked 14th.

• False

• True

Prosthetics produced through 3D printing for underdeveloped countries are a clear example of frugal innovation. In the Product-Process Matrix, this innovation involves enhancing existing products using novel processes to improve efficiency, cost-effectiveness, and accessibility, with a strong focus on incremental innovation and a high level of risk.

• False

• True