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Question 8 (2 points) Netflix outcompeted Blockbuster by introducing a new disruptive business model. This is an example of I
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Answer #1

Question 1: Netflix outcompeted Blockbuster by introducing a new disruptive business model. This is an example of:

Answer: Radical innovation

Snippets: Radical innovation is a rapid technology and social change that destroys an existing business model. It is totally based on the newer technology which by then leads to a new dominant design.

Question 2: The focal firm has less control over its assets when it chooses wholly owned subsidiaries over franchising.

Answer: False

Snippets: A wholly owned subsidiaries gives more power and control over its assets to the focal firm than in a franchise model. The franchise model has limited control over its assets and requires constant monitoring and evaluation of the performance.

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