If a Company Wishes to Be a Technological Leader and Also

question 48

Multiple Choice

If a company wishes to be a technological leader and also maintain a cost advantage,the appropriate R&D strategy would be to

• A) increase the cost of the product.
• B) lower the cost of the product or value activities by learning from the leader's experience.
• C) avoid R&D costs through imitation.
• D) create low-cost ways of performing value activities.
• E) innovate in other activities to increase buyer value.

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Definitions:

Investment

The allocation of resources, such as capital, with the expectation of generating an income or profit.

Days

The measurement of time, specifically the period of time that constitutes a 24-hour day.

Interest

A fee applied to borrowed funds, usually calculated as a percent of the principal amount.

Loan

A sum of money that is borrowed, typically from a financial institution, and is expected to be paid back with interest.