ACME Corp. is a leading provider of radios to the commercial market. Its products all rely on printed circuit-board technology. ACME has protected its market leadership with continued advancements in this technology, which it patents. A competitor has developed a radio for this market with equal performance but that uses a software-based technology instead of circuit boards. ACME’s technology leadership fails which of the following capability tests?
A. Value test
B. Rareness test
C. Substitutability test
D. Costly-to-imitate test
Answer:C
ACME Corp. is a leading provider of radios to the commercial market. Its products all rely on printed circuit-board technology. ACME has protected its market leadership with continued advancements in this technology, which it patents. A competitor has developed a radio for this market with equal performance but that uses a software-based technology instead of circuit boards. ACME’s technology leadership fails which of the following capability tests?
A. Value test B. Rareness test C. Substitutability test D. Costly-to-imitate test