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Which one of these statements seems correct to you? Apple personal computers participate in the general industry by offering computers that are not necessarily expensive because they vary their PC capabilities and offerings to all users in order to capture as much of the market as possible. NONE Both are correct Apple competes through both differentiation and segmentation. Apple has made a significant investment (approximately $1 billion) to develop their own OS to differentiate themselves from the other 90% of personal computers on the market running on a version of Microsoft Windows.

Apple competes through both differentiation and segmentation. Apple has made a significant investment (approximately $1 billion) to develop their own OS to differentiate themselves from the other 90% of personal computers on the market running on a version of Microsoft Windows.

In terms of the OS market: Microsoft had dominated the OS market since the IBM PC in the 1980s. Apple had dominated the OS market after 2000s. Intel had dominated the OS market after 1990s . All are correct.

Microsoft had dominated the OS market since the IBM PC in the 1980s.

Considering the LATE stages of the industry (AFTER the M&A). Which of the following(s) seems correct in terms of changes in the industry: Retailers increased their technological capability to measure product performance inside the showrooms. Retailers had the option to vertically integrate backward, which increased the number of participants in the industry, negatively affecting prices. Resin experience a significant increment in cost. All are correct

All are correct

Accordingly, to the case: Apple achieved the larger market share in the PC industry because of their exceptional price segmentation and consumer service. Apple never achieved a leading position in terms of PC market share Apple obtained the larger market share after implementing windows in their PCs. NONE

Apple never achieved a leading position in terms of PC market share

Please indicate which of the following statements is/are correct: Search engine main suppliers are firms that produce user interface programing. Microsoft is one of the most relevant suppliers for the algorithms that drive search engines. Datacenters are the main supplier industry for the search engine industry. None of them

Datacenters are the main supplier industry for the search engine industry.

In terms of Microsoft search development, which statements seems correct: Microsoft first became a search provider as a consequence of other business ventures. Sergey Brin and Larry Page were PhD students at Stanford when they founded Microsoft Search in 1998. By 1999, Microsoft had a nice technology and venture capital funding, but it had no clear business plan. All of them

Microsoft first became a search provider as a consequence of other business ventures.

Considering the early stages of the industry (before the M&A), which of the following(s) seems correct to address the competitive rivalry: Many firms or equal sized firms? (-) Before the M&A, This industry is dominated by a lot of players, almost a hundred. This increase the competitive rivalry among the industry. Slow industry growth? (-) The industry (at the time before the acquisition) had not been exposed to products of this nature. Manufacturers were pioneers in the industry and the result was high industry growth. High strategic stakes/exit barriers (+) The government had large strategic stakes to keep that technology exclusively to the USA, and avoid that enemy countries will have such level of technological advantages to fight viruses like SARS and COVID19. All are correct

Slow industry growth? (-) The industry (at the time before the acquisition) had not been exposed to products of this nature. Manufacturers were pioneers in the industry and the result was high industry growth.

In terms of PC manufacturer: The four top PC vendors—Hewlett-Packard, Dell, Lenovo, and Acer—accounted for 53.6% of worldwide shipments in 2011. By 2011 Apple was the largest PC Manufacturer, which explain the value that the market assign to the company. Apple also had the largest screen manufacturing facility in China which provided them with a cost advantage compare to Hewlett-Packard. All are correct.

The four top PC vendors—Hewlett-Packard, Dell, Lenovo, and Acer—accounted for 53.6% of worldwide shipments in 2011.

Considering the early stages of the industry (before the M&A), which of the following(s) seems correct to address the suppliers' power: Less Fragmented than the focal industry? (-) The industry of resin suppliers is quite large. Resin is an oil/petroleum sub-product, which is vastly produced by many firms around the world. Considering the abundant plastic resources found across the globe and while comparing it to the requirements of plastic goods manufactures (Ex. Newell/Rubbermaid). The bargaining power of the suppliers seems to be reduced by the large number of firms producing resin and an small number of manufactures for plastic homeware (ex. Rubbermaid, Tupperware, etc.) Minimal threat of substitution? (-) There is no other industry that may provide the alternative for the raw material used by the homeware plastic good industry. (the opposite case would be transportation, where for example, trucks may be replaced by train or airplanes. Then, if and industry uses trucks as a major supplier, then if that can be change by train the power of the truck industry would be affected downward). Differentiation or switching costs? (-) The cost of switching from one resin supplier to another supplier is relatively low. Resin is a commodity (low differentiation), which make it easily to switch between suppliers. All are correct

All are correct

In 2011, Jobs viewed all of these devices as part of an integrated strategy to deliver breakthrough user experiences: Since the early 2000s, consumer electronics (CE) products, ranging from cellphones to TV set-top boxes to game consoles, started to encroach on functionality that was once the sole purview of the PC. In 2011, tablets can deliver the value (computing power and storage) comparable to that of a personal computer. Nowadays, this computing power from tablets may easily match the needs of an average users. In 2011, Jobs viewed all of these devices as part of an integrated strategy to deliver breakthrough user experiences. All are correct

All are correct

Accordingly, to the case, which statements seems correct: In September 2008, Microsoft executives weighed alternatives for improving the company's position in the market for Internet searches and related advertising. One potential game changer was Microsoft's bid that year to buy Yahoo, the #2 player in the market. Microsoft's conduct in the browser market prompted the U.S. Department of Justice to bring an antitrust case against the company in 1998. Most early search engines ranked pages according to how often they contained the search term. This led to very uneven results that were easy to game: Spam websites would massively embed popular search terms (e.g., "car") simply to top the list in common queries. All of them

All of them

Considering the iPhone and the App Store: One key driver behind the iPhone sensation was the launch of the Apple App Store in 2008. Apple's App Store was the first outlet that made it easy to distribute, access, and download applications directly onto the mobile phone. Apple reserved the right to approve all applications and kept a 30% cut of the developer's app sales. And Mobile apps had turned into a nice side business for Apple as well. All of them.

All of them

Considering vertical integrations and M&A in this case. What is it correct?: Microsoft acquired Powerset because they specialized in semantic search which was seen at that point important in new web development. AOL acquired Netscape because costs increased and market share decreased for Netscape so they had to sell their company in fear of bankruptcy. Yahoo acquired Overture because they wanted the knowledge the companies had on search-based advertising. All of them.

All of them

From the perspective of the bargaining power of the buyers: 100% of search engine sales are from firms or people that want to advertise through searches. Generally, advertising is not a significant cost when thinking about one click, but for firms that are online based this kind of advertising is important expense.This means that this is a significant cost to buyers and decrease buyer's bargaining power. The search engine industry offers a differentiated service, which is evidenced when revising the variation in terms of cost per click. The analytic software offered to the businesses for advertisements varies in terms of matching accuracy between businesses in the search engine industry. Google's AdSense is rated the best according to the case. This decreases buyer's bargaining power since companies can't easily replace the service since they all offer different matching algorithms. All of them

All of them

In terms of the market imperfection that provides room to the search engine industry: Search engines provide a better solution, compare to newspapers and radio, to match advertisers with potential consumers. Search engines provide the online retailers (small, medium and large) the capability to directly sale their products to consumers. Search engines overcome the problem of physical difficulties to access information by permitting users to search without the need of leaving their home to go for a library or store. All of them

All of them

When you think about the apple computers (only the PC) strategy, what seems to be the biggest change: Since the early 1990s, Apple had built Macs with an IBM CPU, called PowerPC. In 2006, Jobs made a large investment to shift Apple to Intel chips. By the next year, the entire Macintosh line ran on Intel. The introduction of retina display that changed the way how we valuate watching media and social networks. Mac strategy was developing a proprietary set of applications. Building programs such as the iLife suite (iPhoto, iTunes, iWeb) required Apple to assume significant development costs. All of them except by the retina display introduction.

All of them except by the retina display introduction.

Accordingly, to Steve Jobs the iPod sales moved down for the following reasons: Apple cannibalized and destroyed their own product (iPod). Microsoft affected the iPod with the new introduction of Windows S and the Surface. Microsoft M&A of Nokia debilitated the iPod market. None

Apple cannibalized and destroyed their own product (iPod).

From a strategic point of view, after the acquisition, Newell-Rubbermaid hired a new CEO that changed their strategy in several ways: Increase the mix of products to provide costumers with a more significant number of alternatives, including manufacturing the same kind of products with different brands. Their corporate level strategy was to have low-cost products that permitted them to compete by cost. This strategy made sense because the more significant number of competitors made the general industry to compete by cost. So they centered their strategy in low quality-cheap and undifferentiated products to support the USA government efforts to provide better quality products. The new strategy was to reduce the mix of products by avoiding Newell firms to overlap and not to compete with each other in the kind of product offered. The new CEO business-level strategy was to position the firm as a high-quality product to differentiate from the cheap segment dominated by imported Chinese products, such as high quality industrial products. This strategy permitted Newell-Rubbermaid to move away from the bad results after the M&A, and to start seen profits again. However, they never got to the high-profit levels that they had in the early stages of the industry. Is important to mention that this strategy also reduced their costs. All are correct

The new strategy was to reduce the mix of products by avoiding Newell firms to overlap and not to compete with each other in the kind of product offered. The new CEO business-level strategy was to position the firm as a high-quality product to differentiate from the cheap segment dominated by imported Chinese products, such as high quality industrial products. This strategy permitted Newell-Rubbermaid to move away from the bad results after the M&A, and to start seen profits again. However, they never got to the high-profit levels that they had in the early stages of the industry. Is important to mention that this strategy also reduced their costs.

Considering the early stages of the industry (before the M&A), which of the following(s) seems correct to address the buyers' power: Product is not crucial to buyers? (-) Although the plastic goods are not the center of discount retailer's success, they are in fact crucial to the stores success as plastic goods were extremely hot products at the time and a discount retailer not carrying them would certainly lose business. Full information can be obtained? (-) Full information cannot be obtained by retailers. For example, the case emphasize that the biggest problem is that retailers cannot have access to their own information about MARGINS and how the plastics products performs at the sales floor/shelves. None is correct The two full statement are correct.

The two full statements are correct

From the perspective of the suppliers bargaining power. There are many more data centers than companies in the search engine industry. This means that the suppliers are more fragmented and thus individual data centers have a lower bargaining power. The focal industry is critical to the supplier. Forward integration is feasible for a datacenter. The case shows evidence about this issue when mentioning that datacenter industry is well equipped to supply the needs from the search engine industry. Further, search engine firms never required to vertically integrate backwards. Firms like Google and Yahoo lack of capability to deal with massive data is also an opportunity for datacenters industry. all of them

There are many more data centers than companies in the search engine industry. This means that the suppliers are more fragmented and thus individual data centers have a lower bargaining power.


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