This Reading examines how firms can use new technology to compete successfully. It starts by distinguishing how technology strategy is different from conventional competitive strategy. The Reading then describes how technology leaders can develop strategies to manage technology risks, identify market needs, commercialize new technologies, and compete successfully in a market. The author also identifies various factors that determine whether it is better for a firm to lead or follow when introducing a new technology to a market. Such factors include whether a new technology affects only current offerings in an existing industry, or whether it creates an entirely new offering for a new industry. The Reading then considers how a business can position itself to exploit the next new technology. A Supplemental Reading section explains the importance of platform technologies and the strategies that can help a firm succeed in platform competition.
SAP seeks growth in the small- and medium-sized enterprise market. To do so, it has created a platform strategy with SAP Netweaver. What are the advantages and challenges for an incumbent entering a new market? What are the benefits and challenges of implementing a platform strategy?
Euronex.liffe, a derivatives trading exchange, launches matching, clearing, and confirmation services for the over-the-counter market. This combination of services creates a new platform for a market that potentially cannibalizes its current exchange-based services. Is this good idea? Does the design of this new combination of services make sense? Is it the best positioned among other exchanges and services to the derivatives trading market to launch this new platform?
In the late 1990s, TiVo pioneered the digital video recorder (DVR), a new consumer electronics category. By 2005, the company was the clear leader in technology and installed base. It had also built extraordinary loyalty among its customers. However, TiVo lost a half billion dollars since its founding and was now facing new, fierce competition from satellite and cable providers. Explores the strategic challenges facing TiVo and the potential strategic options for fending off its competitive threats and reversing its financial fortunes.
Designed as an overview of all aspects of the strategy process: industry analysis, positioning, dynamics and sustainability, and scope issues of corporate strategy, including vertical integration, horizontal diversification, and location issues. Ice-Fili is the largest ice cream producer in Russia in 2002, but is facing strong competition from Nestle despite its success over other multinational competitors. Contains detailed exhibits, allowing deeper analyses. A rewritten version of an earlier case.
QUALCOMM, Inc. had transitioned from a fledgling startup into a Fortune 500 wireless technology leader. Its CDMA technology was considered the preeminent technology and was the world's fastest growing wireless communications technology. CEO Irwin Jacobs had a number of concerns as he determined how to sustain the company's success. How should the company allocate its resources among products? How could QUALCOMM encourage other countries--China and India in particular--to move to CDMA-based systems? How should QUALCOMM defend its position against other new technologies?
eBay, Yahoo!, and Amazon.com entered the online auction market within four years of one another, along with a host of smaller Web sites. Five years later, eBay clearly outstripped its competitors, despite the fact that Yahoo! and Amazon both had a huge installed base of users. Why? Presents background on the entry and strategies of the top three players to discuss the economics of the online auction market, why the market tipped to eBay, and where the industry will go from here.
Mike Ramsey, TiVo's CEO, must decide on which direction to build the company. Facing an onslaught of new competitors, a huge opportunity in the cable industry, and the possibility of becoming the new "user interface" for TV entertainment, Ramsey must balance the demands for profitability with the hope of driving TiVo to mass adoption.