Which of the following statements is true of the innovation matrix?
A)As a company moves away from its core capabilities, it traverses a range of innovation.
B)If an SBU of a firm is in a market with low overall attractiveness it must be harvested.
C)Products are matched with markets in order to develop alternative marketing strategies.
D)Clear-cut sectors define modern businesses' growth better than the fluid growth model.

Question

Quizplus · Accepted Answer

The innovation matrix shows that as a company moves away from its core capabilities, it traverses a range of innovation from incremental to transformational. This is represented in the matrix as a diagonal line from bottom left (low innovation, core capabilities) to top right (high innovation, non-core capabilities).

Option B is incorrect as harvesting is recommended for products in low growth markets, not SBUs in low overall attractiveness markets.

Option C is partly correct as the matrix does involve matching products with markets, but the primary objective is to determine the level of innovation required for success.

Option D is incorrect as modern businesses often have fluid growth models that involve pursuing opportunities in multiple sectors simultaneously.

Which of the Following Statements Is True of the Innovation