...Industrial and Corporate Change, Volume 19, Number 1, pp. 81–116 doi:10.1093/icc/dtp032 Advance Access published June 22, 2009 Who profits from innovation in global value chains?: a study of the iPod and notebook PCs Jason Dedrick, Kenneth L. Kraemer and Greg Linden This article analyzes the distribution of financial value from innovation in the global supply chains of iPods and notebook computers. We find that Apple has captured a great deal of value from the innovation embodied in the iPod, while notebook makers capture a more modest share of the value from PC innovation. In order to understand these differences, we employ concepts from theories of innovation and industrial organization, finding significant roles for industry evolution, complementary assets, appropriability, system integration, and bargaining power. Downloaded from icc.oxfordjournals.org at University of Dhaka on June 19, 2011 1. Introduction The power of innovation to reward pioneers with exceptional profits is well known. Yet, as recognized in various strains of the business strategy literature, the value generated from the innovation is generally shared by the innovator with some combination of component suppliers, intellectual property owners, providers of complementary products and services, competitors, and consumers. This is all the more true as firms focus on a set of core activities and rely on a network of allies and suppliers to help them create and produce innovative products. In such...
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...RA G PC+ E IN E RM TH FO OR NS O F RA OV T N LE ual Ann 3 2 /1 2 2 01 Code 99 ck Sto o nov t Le or Rep ited Lim up Gro ov rso NV L e n R : L ion pe any – to l ( A D 34 bil comp o PC ted $ dica siness g y p t w and e US nolo to bu s. D ld h ng t e c o f t h e he wor P l u s untrie novo’s d stro e o n M t o n e ers in n g P C 160 c vices, L chain a rmer IB d i mak m e r g re than rnet de supply f the fo ures an s e t o ct te lobal o an ufac odu ition ile in nm rs i d mob ficient g acquis s, man logy pr ercial e ’s tom an mm no -ef op s, cus d PCs highly Group devel e tech ed co tation d s o ng ere a y s i n, Lenov an -to-u -bran work serv gine mp atio y k , er – ally en t innov ed by the Co nd eas ry Thin ervers a lead ption oduc Form ion, da l as s en r ure e . exc ilt on p cution g Divis ty, sec ude leg as wel e l e l u in quali inc obi Cs, is b egic ex mput ho t ig ct lines mer P y o f m ding stra onal C able, h odu u mil inclu s. i ons r s Per ets rel . Its p ded c d a f a evices, phone e s k n rt n a n net d mar service ea-bra ortu sma r Id inte ts and lobal F major d an and g e tabl vo, a ny, has mato, PCs eno ompa rs in Ya ghai L c te an 500 rch cen ng, Sh a; and in ea Beiji . res n; lina , Ch pa enzhen h Caro Ja Sh ort and igh, N e Ral O NOV 2 ) LE 9 OUT K S E : 9 i s a B A ) H o ( nal GY N ENT REHE P EM TAT COM E S OF T OM ITY INC EMEN HEET QU TED STAT CE S ENT S IN E DA D LI AN TEM NGE SO IDATE BAL STA A ON D OW OF CH NTS 2 C NSOL IDATE T FL 11 CO E OL...
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...RA G PC+ E IN E RM TH FO OR NS O F RA OV T N LE ual Ann 3 2 /1 2 2 01 Code 99 ck Sto o nov t Le or Rep ited Lim up Gro ov rso NV L e n R : L ion pe any – to l ( A D 34 bil comp o PC ted $ dica siness g y p t w and e US nolo to bu s. D ld h ng t e c o f t h e he wor P l u s untrie novo’s d stro e o n M t o n e ers in n g P C 160 c vices, L chain a rmer IB d i mak m e r g re than rnet de supply f the fo ures an s e t o ct te lobal o an ufac odu ition ile in nm rs i d mob ficient g acquis s, man logy pr ercial e ’s tom an mm no -ef op s, cus d PCs highly Group devel e tech ed co tation d s o ng ere a y s i n, Lenov an -to-u -bran work serv gine mp atio y k , er – ally en t innov ed by the Co nd eas ry Thin ervers a lead ption oduc Form ion, da l as s en r ure e . exc ilt on p cution g Divis ty, sec ude leg as wel e l e l u in quali inc obi Cs, is b egic ex mput ho t ig ct lines mer P y o f m ding stra onal C able, h odu u mil inclu s. i ons r s Per ets rel . Its p ded c d a f a evices, phone e s k n rt n a n net d mar service ea-bra ortu sma r Id inte ts and lobal F major d an and g e tabl vo, a ny, has mato, PCs eno ompa rs in Ya ghai L c te an 500 rch cen ng, Sh a; and in ea Beiji . res n; lina , Ch pa enzhen h Caro Ja Sh ort and igh, N e Ral O NOV 2 ) LE 9 OUT K S E : 9 i s a B A ) H o ( nal GY N ENT REHE P EM TAT COM E S OF T OM ITY INC EMEN HEET QU TED STAT CE S ENT S IN E DA D LI AN TEM NGE SO IDATE BAL STA A ON D OW OF CH NTS 2 C NSOL IDATE T FL 11 CO E OL...
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...Smartphone Industry Analysis By Abstract We define a smartphone to be a mobile device possessing cutting-edge capabilities and features likened to cellular phones. Their hardware and software features are supposed to functionalities like browsing the web, taking fine pictures, and watching HD videos and much more (Darlin, 2008). A notable principle trend in the current market is the increased demand for big-sized screen smartphones. With the development of better platforms like virtualization, cloud computing, and disposition of next-generation LTE networks like 3G and 4G, people have too great extent intensified activities such as internet browsing, playing games, and playing videos on these devices, taking the worldwide demand for smartphones to another level (Dediu, 2013). This paper examines the changing aspects that are enabling sustained disruption in the international smartphone setting and such aspects that will propel more change over in the next few years. Introduction The smartphone industry has seen astonishing growth in modern years; sales volumes rose by more than 40 percent in 2014 to go not far from the 1.8 billion unit threshold focus of 2018, and it is more than $300 billion in value (Dawson, 2010). Nonetheless, this volatile growth has been complemented by the substantial disruption. Players in Web market are targeting to take the advantage that smartphones offer in the instances of assignation, context, connectivity...
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...cameras, printers, MP3 players and also electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications. Dell was a pure hardware vendor for much of its existence, but a few years ago with the acquisition of Perot Systems, Dell entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions for enterprise customers. History Dell traces its origins to 1984, when Michael Dell created PC's Limited while a student of the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components. Dell dropped out of school to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family. In 1985, the company produced the first computer of its own design, the Turbo PC, which sold for $795. PC's Limited advertised its systems in national computer magazines for sale directly to...
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...HEWLETT-PACKARD GRIFFIN CONSULTING GROUP Jason Blauvelt Paul Ciasullo Owen Hawkins Sunday, April 15, 2012 CONTENTS Executive Summary ..................................................................................................................... 4 History ........................................................................................................................................... 5 Bill Hewlett and Dave Packard .............................................................................................. 5 Expansion .................................................................................................................................. 6 The Age of Computers ............................................................................................................ 7 Acquisitions, Innovation, and New Markets ....................................................................... 7 Struggles in Recent Years ........................................................................................................ 8 Financial Analysis ........................................................................................................................ 9 Overview ................................................................................................................................... 9 Chart 1: Stock Performance Over 5 Years............................................................................. 9 Chart 2: Basic Financial Information...
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...|[pic] |BA 388T Strategic management | | |Section 02310 | | |SPRING 2014 | Professor Stephen E. Courter Class Time and Location 9:30 -11:00 am GSB 3.106 Office CBA 3.236 Office Hours Mondays 10:30-11:30 am and Thursdays 1:00-2:30 pm Also By Appointment Phone 512-232-3441 E-Mail Steve.Courter@Mccombs.utexas.edu Course Web Page via Blackboard Teaching Assistant Vanessa Gonzales Vanessa.Gonzales@mba14.mccombs.utexas.edu Course Objectives The traditional purpose of this course is to help you integrate your knowledge of the functional areas of business into a holistic view of the firm and thereby determine and execute proper business level and corporate strategies. Additionally, the field of strategic management has developed a number of concepts and models unique to a general management view, and designed to provide the tools to analyze the firm and its environment. A second purpose of the course will be to digest this body of knowledge, and explore real life situations in applying its...
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...executives from Fairchild Semiconductor. The company began by exclusively designing and producing microprocessors and slowly building on their core competencies to foray into other computer hardware. In 1975, AMD introduced a reverse-engineered clone of the Intel 8080 microprocessor. Even then Intel chip architecture was considered the industry standard. AMD’s laggard position in the industry can be traced all the way back to the beginning. Throughout the seventies AMD diversified its product portfolio into graphics, audio devices, and computer memory. AMD achieved minor success in the 1980s by briefly competing in the modem industry. At the time, AMD manufactured the only modem compatible with the various idiosyncrasies of the different telephone companies. In the late eighties AMD decided to devote its focus mainly to designing and manufacturing microchips. The company chose to compete directly with Intel and their established chip architecture. AMD acquired ATI Technologies in 2006, marking the company’s serious entry into the graphics industry. AMD’s jump into graphics got off to a rocky start. Later that year, AMD and its main rival in the graphics industry, NVIDIA, were accused of price fixing and faced court proceedings. After a prolonged period of poor performance, AMD announced plans to spin-off manufacturing operations to form a joint venture with Advanced Technology Investment Co. The new venture is called Global Foundries Inc. This partnership allowed AMD to focus solely...
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...iPad Prospects After the Kindle Fire: 65% Market Share and Most of the Profits par4par“But, in comparison with the iPad, the Kindle Fire has a 33 percent smaller display, no cameras, no 3G wireless, less memory and only two-finger multi-touc [...] 2 comments, 1 called-out + Comment now par4par “But, in comparison with the iPad, the Kindle Fire has a 33 percent smaller display, no cameras, no 3G wireless, less memory and only two-finger multi-touc [...] Amazon CEO Jeff Bezos introduces the Kindle Fire (Image by AFP/Getty Images via @daylife) Jeff Bezos unveiled the $199 Kindle Fire this morning with great fanfare, but a closer look should disappoint those looking for an iPad killer. The Kindle Fire is poised to nibble at Apple’s market share. But this low-cost and under-powered tablet is more likely to suffocate its Android-based brethren than the iPad and actually should cement Apple’s dominance of the general-purpose tablet market. On the plus side, the Kindle Fire has a custom Amazon user interface that supports tight integration with Amazon’s content and media apps. It also includes one month’s free subscription to Amazon Prime (a $6.58 value!), which includes free 2-day shipping and some free streaming video access. In short, at $199, the Kindle Fire is an attractive Amazon shopping and content consumption device. But, in comparison with the iPad, the Kindle Fire has a 33 percent smaller display, no cameras, no 3G wireless, less memory and only two-finger...
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...The Analysis of Smartphone Industry Author Note This paper was prepared for MRK 3001 Marketing Strategies, taught by Associate Professor Burcu İlter. TABLE OF CONTENTS ABSTRACT This study aims at measuring industry analysis about smartphone. Firstly, we had to determine which smartphone industry is going to handle. We did brain stormy with group members on this subject. We looked over many web pages about this subject. And then, we did internet searching about the comparison of industry analysis examples. We did task distribution after internet searching. Description of smartphone, smartphone industry and nature of the industry is handled by Emir Nişancı. Structural analysis within the industry and industry dynamics are handled by Merve Demirkıran, Damla Dutlu and Perihan Yıldırım. Competitor analysis for each key player is handled Anna Bivol. We have had a lot of knowledge that we didn’t know about the smartphone industry through this term project. This term project has had enjoyable and beneficial for us. Keywords: Smartphone Industry, Industry Dynamics, Key Player of Smartphone Industry 1. Introduction This report will focus on the smartphone industry given that the global market, in terms of the major players involved. In this report, we mainly focused on the dynamics of the smartphone industry and the factors that affects the change over the conditions of competition. The smartphone industry consists of all companies that manufacture and sell smartphones...
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...Group Assignment 2: Dell- New Horizons (Rangan and Bell) Marketing for Managers Group C: Saturday, 29 June 2013 Summary Could anyone imagine some thirty years ago the global influence a young college freshman would have on the world? Michael Dell’s build your PC to order idea was just that, a game changer. A few years after coming to market, Dell was the 3rd most admired company by fortune magazine. By the early 2000’s Dell like other PC companies began to see a rapid decline in revenue growth. This decline, brought to surface the need to look at diversifying their product and service offerings. These included but are not limited to; is the increase service offerings, expanding into the server and storage space as well as extending their reach globally. Today we will look at the company and how it began, some of their key issues, review a SWOT analysis that will bring us to our decision and why we believe this to be the best path. The Company In 1983, Michael Dell began with a simple strategy of providing PC upgrades to companies who were looking for a more customized PC. After a few years this lead him to a “Buy - Upgrade – Sell” model, where they would purchase IBM computers, upgrade them and then sell them for a profit. By 1985, Dell moved to assembling PC’s through a Build to Order model, this strategy was so successful it provided them with over $70M in sales by the end of the year. The PC’s were produced with a very modular design, so this facilitated...
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...Policy statement: Georgi Vankov Type of investor: Semi Aggressive (31 points) Investment Objective Seeks to earn long-term capital appreciation with return higher than the average market return. Investor Horizon Accumulation stage: 20-30 years window Primary Risks An investment in the Fund could lose money over short or even long periods. Investor should expect the Fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. There is possible opportunity for the investor selling the portfolio if the negative returns are too high leading to high losses. • Stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. • Manager risk, which is the chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective. • Investment style risk, which is the chance that returns from small- and mid-capitalization stocks will trail returns from global stock markets. Historically, small- and mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the global markets, and they often perform quite differently. Small and midsize companies tend to have greater stock volatility because, among other things, these companies are...
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...Porter’s analysis: 2. The second factor is rivalry among existing firms. * Office Depot’s major competitors include: IKON Office Solutions, Staples, United Stationers, OfficeMax, and Wal-Mart Stores. The competition among these firms is highly intense. Another competitor is Fedex Kinko’s (14% of the market segment) * Staples, Office Depot and OfficeMax) comprise about 11% of the market combined. * print and ship services are approximately 17%, ranking it as one of Office Depot's most profitable offerings * Office Depot, Staples and Officemax are the market leaders in the office supply industry. However they only account for 10% of the market. The rest is divided widely between supermarkets, wholesale retailers, discount stores (including Wal-Mart) and smaller independent companies. * Office Depot has made efforts to increase its profitability by offering copy and print services, * One advantage Office Depot has over Staples is its international market. * Company has integrated copy and print services into retail and commercial businesses. Staples provides those services as well= intense competition among rivals. * In an effort to increase their sales, Office Depot decided to implement direct sourcing, which allows companies such to offer its own line of private label goods, and branded goods. Office Depot and Staples are very competitive in this regard, with about one-fifth of all goods sold coming from respective private labels. * We...
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...12 Apple Inc. Strategy Review and Recommendation Group: E2 12 Apple Inc. Strategy Review and Recommendation Group: E2 Content 1. Company Background 4 2. Report Aim and Scope 4 3. Analysis of the Current Environment 5 3.1. PEST Analysis 5 3.2. Porter’s Five Forces 7 3.3. Resource Portfolio Analysis 8 3.4. Current SWOT Analysis 10 4. Analysis of the Future Environment via Scenario Planning 11 4.1. Impact of Scenarios on Apple’s Five Forces 12 4.2. Impact of Scenario Planning on Internal Environment (VRIN) 13 4.3. Future SWOT 15 5. Evaluation of Existing Strategies 16 6. Analysis of Apple’s Organizational Direction 16 7. Strategic Option Generation 18 7.1. Generic Strategy Model 18 7.2. BCG Matrix 19 7.3. Directional Policy Matrix 20 7.4. ANSOFF Matrix 21 7.5. TOWS 22 8. Strategy Evaluation through SAFe 23 8.1. Corporate Level Strategic Evaluation 23 8.2. Media Devices & Mobile Communications SBU Strategic Evaluation 24 8.3. Personal Computers Strategic Evaluation 24 8.4. Portable Media Players Strategic Evaluation 25 8.5. Software Strategic Evaluation 25 9. Comparison of New and Existing Strategies 25 10. Conclusion 26 11. Report Limitations 28 12. References 29 1. Company Background Apple Inc was founded in April 1976 by Steve Jobs and Steve Wozniak. The company that invented the first personal computer has diversified into designing and producing a vast range...
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...No. 2106 February 8, 2008 Trojan Dragon: China’s Cyber Threat John J. Tkacik, Jr. America’s counterintelligence czar, Dr. Joel F. Brenner, painted an alarming picture of economic espionage in 2006, albeit in the objective tones and neutral parlance of the intelligence community. He reported to Congress that “foreign collection efforts have hurt the United States in several ways”: • Foreign technology collection efforts have “eroded the US military advantage by enabling foreign militaries to acquire sophisticated capabilities that might otherwise have taken years to develop.” • “[M]assive” industrial espionage has “undercut the US economy by making it possible for foreign firms to gain a competitive economic edge over US companies.” Dr. Brenner characterizes China as “very aggressive” in acquiring U.S. advanced technology. “The technology bleed to China, among others, is a very serious problem,” he said in March 2007, noting that “you can now, from the comfort of your own home or office, exfiltrate information electronically from somebody else’s computer around the world without the expense and risk of trying to grow a spy.” On November 15, 2007, the bipartisan, congressionally chartered U.S.–China Economic and Security Review Commission (USCC) put a finer point on it: “Chinese espionage activities in the United States are so extensive that they comprise the single greatest risk to the security of American technolo- gies.” Cyberpenetration is by far China’s most effective...
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