BUSM 499 Strategic Management

Ch. 7 (Innovation & Entrepreneurship)

Student Name: Arjhie Dioquino

Question No. 1: On a scale of 1-5, how dumb was Blockbuster to turn down Netflix? 4.5 because
Netflix is huge right now and it is one of the big companies on streaming services. Their
innovation is really getting the people’s attention in terms of movies and other things to increase
their viewers and subscribers. They are disrupting the traditional movies that people watch on
television and cinemas.

Question No. 2: Draw the Innovation and Industry Life Cycle and name the following:

a. Market Size Market Size

b. Introduction
c. Growth
d. Maturity
e. Decline

Introduction
Growth Shakeout Maturity Decline

Time

Question No. 3: Draw the leveraging network for Apple’s iPhone and iPad:

Apple iPhone
Installed Base

Demand for iPhone Apps

iPhone

Value of
iPhone

Leveraging Network Effects to Drive Demand: Apple’s iPhone

Question No. 4: What does it mean to “Cross the Chasm” and how do you pronounce “Chasm”?
 B101 Introduction to Business
Cross the chasm means transitioning one stage of the industry life cycle to the next. It is more on
meeting the demands of the needs of the customers of the next set of new customers. Also, it
basically connotes getting from a point when your customers are mostly innovators and early
innovators to the moment that you attain early advantage. Chasm is pronounced as ka.zm

Question No. 5: Draw a 4 box matrix using existing/new markets and existing/new technologies in
order to place the major innovations (one point for the box, one point for each innovation).

Architectural Radical
New Innovation Innovation
Markets
Incremental Disruptive
Existing Innovation Innovation

Existing New

Technologies

Bonus Question: Name 5 disruptive innovations from the text (one point for each innovation).
Wikipedia disrupting Encyclopedia.
massive open online courses (MOOCs) offered by Coursera and Udacity disrupted traditional
universities.
BYD, Japanese carmakers Lexus, Infiniti, and Acura, South Korean carmakers Kia and Hyundai-
low-cost all-electric vehicles disrupting traditional cars.
Laptop computers disrupted desktop computers.
Digital photography disrupted film photography.