Find all School-related info fast with the new School-Specific MBA Forum

It is currently 03 Sep 2015, 20:12
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Traditionally, the first firm to commercialize a new

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 29 Dec 2011
Posts: 38
Followers: 0

Kudos [?]: 22 [0], given: 29

Traditionally, the first firm to commercialize a new [#permalink] New post 10 Nov 2012, 02:07
Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing followers to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs may go to companies that lead in developing integrated approaches for successful mass production and distribution.

Producers of the Beta format for videocassette recorders (VCRs), for example, were first to develop the VCR commercially in 1975, but producers of the rival VHS (Video Home System) format proved to be more successful at forming strategic alliances with other producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Beta producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.

Despite Beta's substantial technological head start and the fact that VHS was neither technically better nor cheaper than Beta, developers of VHS quickly turned a slight early lead in sales into a dominant position. Strategic alignments with producers of prerecorded tapes reinforced the VHS advantage. The perception among consumers that prerecorded tapes were more available in VHS format further expanded VHS's share of the market. By the end of the 1980s, Beta was no longer in production.
The author implies that one way that VHS producers won control over the VCR market was by
A) carefully restricting access to VCR technology
B) giving up a slight early lead in VCR sales in order to improve long-term prospects
C) retaining a strict monopoly on the production of prerecorded videotapes
D) sharing control of the marketing of VHS format VCRs
E) sacrificing technological superiority over Beta format VCRs in order to remain competitive in price
[Reveal] Spoiler:
D


According to the passage, today's successful firms, unlike successful firms in the past, may earn the greatest profits by
(A) investing in research to produce cheaper versions of existing technology
(B) being the first to market a competing technology
(C) adapting rapidly to a technological standard previously set by a competing firm
(D) establishing technological leadership in order to shape product definitions in advance of competing firms
(E) emphasizing the development of methods for the mass production and distribution of a new technology
[Reveal] Spoiler:
E


The passage is primarily concerned with which of the following?
A) Evaluating two competing technologies
B) Tracing the impact of a new technology by narrating a sequence of events
C) Reinterpreting an event from contemporary business history
D) Illustrating a business strategy by means of a case history
E) Proposing an innovative approach to business planning
[Reveal] Spoiler:
D


The alignment of producers of VHS format VCRs with producers of prerecorded videotapes is most similar to which of the following?
A) The alignment of an automobile manufacturer with another automobile manufacturer to adopt a standard design for automobile engines
B) The alignment of an automobile manufacturer with an automotive glass company whereby the manufacturer agrees to purchase automobile windshields only from that one glass company
C) The alignment of an automobile manufacturer with a petroleum company to ensure the widespread availability of the fuel required by a new type of engine developed by the manufacturer
D) The alignment of an automobile manufacturer with its dealers to adopt a plan to improve automobile design
E) The alignment of an automobile dealer with an automobile rental chain to adopt a strategy for an advertising campaign to promote a new type of automobile
[Reveal] Spoiler:
C




Hello,
I'd like to know your thoughts (mainly why you would not go for certain answer choices) in arriving at the final answer for this RC set of questions.
Thank you for your help.
Best wishes.
**************
Manager
Manager
User avatar
Status: A mind once opened never loses..!
Joined: 05 Mar 2015
Posts: 214
MISSION : 800
GPA: 3.8
WE: Design (Manufacturing)
Followers: 5

Kudos [?]: 57 [0], given: 195

GMAT ToolKit User Premium Member
Traditionally, the first firm to commercialize a new [#permalink] New post 11 Jun 2015, 00:22
All questions for this passage are here

1. The passage is primarily concerned with which of the following?
(A) Evaluating two competing technologies
(B) Tracing the impact of a new technology by narrating a sequence of events
(C) Reinterpreting an event from contemporary business history
(D) Illustrating a business strategy by means of a case history
(E) Proposing an innovative approach to business planning

2. According to the passage, today’s successful firms, unlike successful firms in the past, may earn the greatest profits by
(A) investing in research to produce cheaper versions of existing technology
(B) being the first to market a competing technology
(C) adapting rapidly to a technological standard previously set by a competing firm
(D) establishing technological leadership in order to shape product definitions in advance of competing firms
(E) emphasizing the development of methods for the mass production and distribution of a new technology > directly mentioned in the passage

3. According to the passage, consumers began to develop a preference for VCR’s in the VHS format because they believed which of the following?
(A) VCR’s in the VHS format were technically better than competing-format VCR’s.
(B) VCR’s in the VHS format were less expensive than competing-format VCR’s.
(C) VHS was the first standard format for VCR’s.
(D) VHS prerecorded videotapes were more available than Beta-format tapes. > directly stated
(E) VCR’s in the Beta format would soon cease to be produced.

4. The author implies that one way that VHS producers won control over the VCR market was by
(A) carefully restricting access to VCR technology
(B) giving up a slight early lead in VCR sales in order to improve long-term prospects
(C) retaining a strict monopoly on the production of prerecorded videotapes
(D) sharing control of the marketing of VHS-format VCR’s
(E) sacrificing technological superiority over Beta-format VCR’s in order to remain competitive in price

Here the battle is b/w B & D
B is wrong because the lead in sales just gave a head start but VHS won control over market by the pre- recorder tapes marketing ie marketing of VHS-format VCR’s

5. The alignment of producers of VHS-format VCR’s with producers of prerecorded videotapes is most similar to which of the following?
(A) The alignment of an automobile manufacturer with another automobile manufacturer to adopt a standard design for automobile engines.
(B) The alignment of an automobile manufacturer with an automotive glass company whereby the manufacturer agrees to purchase automobile windshields only from that one glass company.
(C) The alignment of an automobile manufacturer with a petroleum company to ensure the widespread availability of the fuel required by a new type of engine developed by the manufacturer.
(D) The alignment of an automobile manufacturer with its dealers to adopt a plan to improve automobile design.
(E) The alignment of an automobile dealer with an automobile rental chain to adopt a strategy for an advertising campaign to promote a new type of automobile.

6. Which of the following best describes the relation of the first paragraph to the passage as a whole?
(A) It makes a general observation to be exemplified. ---- exactly matches the premises of the 1st paragraph
(B) It outlines a process to be analyzed. ---- not a process a trend
(C) It poses a question to be answered. ---- no questions raised
(D) It advances an argument to be disputed. ---- not disputed but expanded
(E) It introduces conflicting arguments to be reconciled. ---- It's states a general trend observed before and now and not conflicting arguments
_________________

Thank you

+KUDOS

Follow me on FB & Twitter> dp

Manhattan 1 > 680 :)
Manhattan 2 > 650
Gmat prep 1 > 650
Gmat prep 2 > 720 :) :)

> I CAN, I WILL <

Traditionally, the first firm to commercialize a new   [#permalink] 11 Jun 2015, 00:22
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic Traditionally, the first firm to commercialize RaviChandra 2 16 Jul 2015, 10:55
1 Experts publish their posts in the topic Firms traditionally claim that ankurgupta03 3 22 Jun 2014, 19:47
Traditionally, the first firm to commercialize a new gmatpunjabi 1 08 Feb 2012, 13:08
1 The cosmetics industry has traditionally struggled to rampuria 4 20 Jul 2011, 05:00
============== Traditionally, pollination by wind has been nitya34 12 13 Mar 2009, 10:39
Display posts from previous: Sort by

Traditionally, the first firm to commercialize a new

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.