Examples of incremental innovations include iPads, Wi-Fi, and the web browser

The I/O and resource-based models contain many of the same steps. One clear difference between the two models is the resource-based model starts by looking at the internal strengths and weaknesses of a firm, while the I/O model begins with an examination of the external environment. Another key difference is the resource-based model identifies an attractive industry much earlier in the process than does the I/O model

The difference between average and above-average returns is that average returns are returns that an investor expects to earn from an investment as compared to other investments with similar stock prices, while above-average returns are in excess of expectations for similarly priced stocks

The new CEO of Opacity Enterprises is determined to make the long-established firm strategically flexible. The CEO should understand that the task is not easy, largely because of inertia that can build up over time

The assumptions of the industrial organization model and the resource-based model are contradictory. Therefore, organizational strategists must choose one or the other model as the basis for developing a strategic plan

The industrial organization (I/O) model suggests that above-average returns are determined primarily by the firm’s unique internal resources rather than by external capabilities

Strategy formulation and implementation must be simultaneously integrated for a successful strategic management process

Since the 1980s, the basis for competition has shifted from intangible resources to hard assets

The rapid rate of technological diffusion has increased the competitive benefits of patents

Strategic leaders must have a strong strategic orientation while simultaneously embracing change in the dynamic competitive landscape