Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased ability to pivot based on customer feedback
B
Decreased operational flexibility due to rigid processes
C
Enhanced speed to market for new products
D
Improved decision-making through hypothesis-driven testing
E
Higher initial investment costs for product development
Understanding the Answer
Let's break down why this is correct
Answer
Adopting the lean startup approach often speeds the time it takes to bring a product to market, because teams test ideas early and discard failures quickly. It also improves product‑market fit, since customer feedback is built into each iteration, leading to higher user satisfaction. Firms typically see better use of resources, cutting waste and lowering development costs. Finally, the continuous learning loop can raise overall profitability by aligning offerings more closely with customer needs. For example, a startup that tests a new app feature with a small group, learns what users actually want, and pivots before full launch, saves both time and money while delivering a product that truly sells.
Detailed Explanation
Lean startups focus on learning fast. Other options are incorrect because Some think lean startup makes processes rigid, but it actually does the opposite; Lean startup does not raise initial costs.
Key Concepts
Lean Startup Methodology
Firm Performance Improvement
Customer Feedback Integration
Topic
Performance Impact of Lean Startup
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Which of the following are key principles of the Lean Startup Methodology? Select all that apply.
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Question 2What underlying cause contributes to the improved firm performance observed in companies that adopt the lean startup methodology?
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3
Question 3Lean Startup Method : Enhanced Firm Performance :: Agile Methodology : ?
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4
Question 4Which of the following outcomes can be attributed to the adoption of the lean startup methodology in firms? (Select all that apply)
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Question 5How does the Lean Startup methodology primarily impact firm performance over time?
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6
Question 6Which of the following are key principles of the Lean Startup Methodology? Select all that apply.
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7
Question 7What underlying cause contributes to the improved firm performance observed in companies that adopt the lean startup methodology?
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8
Question 8How does the Lean Startup methodology primarily impact firm performance over time?
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