New Cars
Directions: After watching the video shown in class, I would like for you to answer these
questions in your class Chapter Discussion Groups. We will discuss your findings in class next
Wednesday.
1. Why would a new automobile engine design be considered a disruptive technology?
How would it affect the general environment? Which stakeholders would be most
affected and why? What complementors are needed for the disruptive technology to take
hold? What role would industry structure have on the adoption of the disruptive
technology? Using game theory, how could competitors who would lose from the
introduction and mass adoption of the disruptive technology react?
2. Identify a small company from the video. Given your answers in Question 1, what
strategy would you suggest to the small company to compete against the existing
competitive paradigm? What competitive obstacles do you see that you would have to
overcome? How would you overcome these obstacles?
3. Choose one of the automobile manufacturers highlighted in the video. Given your
answers in Question 1, what strategy would you suggest for the large company to
implement to create a sustainable first mover advantage? What competitive obstacles do
you see that you would have to overcome? How would you overcome these obstacles?
4. Choosing any company, how can the resource based viewpoint of value, rarity,
inimitability, and organization be satisfied for the company to gain a sustainable
competitive advantage, given the core competencies of your chosen company? Please
explain.
