Mock Practice Test-6
Read each of the following passages and answer the items that follow. Your answers to these items should be based on the passages only.
Traditionally, the first firm to commercialize a new technology has benefited from the unique opportunity to shape product definitions, forcing following to adapt to a standard or invest in an unproven alternative. Today, however, the largest payoffs go to the companies, that lead in production and distribution.
Producers of the Bete Format for video cassette 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 the producers and distributors to manufacture and market their VCR format. Seeking to maintain exclusive control over VCR distribution, Bete producers were reluctant to form such alliances and eventually lost ground to VHS in the competition for the global VCR market.
Despite Bete’s substantial technological head start and the fact that VHS was neither technically better nor cheaper than Bete, developers of VHS quickly turned a slight early 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 market. By the end of 1980s, Bete, was no longer in production.
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 an automotive glass company whereby the windshields are procured only from that one glass company.
B The alignment of an automobile manufacture with a petroleum company to ensure the widespread availability of the fuel required by a new type of engine developed by the manufacturer.
C The alignment of an automobile manufacturer with its dealers to adopt a plan to improve automobile design.
D The alignment of an automobile deals with an automobile chain to adopt a strategy for an advertising campaign to promote a new type of automobile.