Today Microsoft Lags Behind New Industry Entrants in High-Growth,consumer-Oriented Areas

question 12

Multiple Choice

Today Microsoft lags behind new industry entrants in high-growth,consumer-oriented areas such as search and social networking.Which of the principles of disruptive innovation does this fact pertain to?

• A)Companies depend on customers for resources.
• B)Small markets don't satisfy the growth needs of large companies.
• C)Markets that don't exist can't be analyzed.
• D)Technology supply may not equal market demand.
• E)A company's capabilities define its disabilities.

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Definitions:

Price Level

An index that measures the average prices of goods and services in an economy at a given time.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to a need for borrowing or using saved reserves.

Energy Prices

The cost of purchasing energy sources such as oil, gas, coal, and electricity, which can fluctuate based on demand, supply, geopolitical stability, and environmental policies.

Economic Contraction

A decline in national output as measured by GDP, often leading to higher unemployment and lower spending.