1.

Proof of concept: evidence, typically gained from an experiment or test project, which
provide evidences that a design concept, business proposal, etc., is feasible.

2. Because companies have to concentrate on

- process innovations (keep up with demand while cut down cost).
- increase manufacturing and marketing capabilities.
- R&D emphasis tends to shift to process innovation for improved efficiency

3. Top-down: is an approach that aims to gradually move from the top/main features and
design choices to the detailed ones. Automobiles can move from 0-100km in 10s. To obtain this
goal, the main engine have to have modern technology, the fuel injection rate have to be high, etc
Bottom-up: to emerge features and design choices from the detail, meaningful
classification level and then develop it to the higher level. The airbags are new and easy to
trigger, the break system is stable will contribute to good car safety

4. Because demand is strong during the growth phase,

prices begin to fall, often rapidly,
as standard business processes are set, firms begin to gain profits economies of scale and
learning.
Distribution channels are expanded
complementary assets in the form of products and services become widely available.

5. Core competencies is manufacturing and marketing because there are proof of concept,
firms have already standardized their production process, they concentrate on the benefits of
economy of scales to take advantage of high demand.