...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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...Dell Computer Corporation was established in 1984 and today ranks among the world’s largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software. Dell’s complete range of high-performance computer systems include: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and PowerEdge network servers. The company’s products and services are sold in more than 140 countries and territories to customers extending from major corporations, government agencies and medical and educational institutions to small businesses and individuals. The company employs approximately 11,000 people. Headquarters are located in Round Rock, Texas, with manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia. At age 13 Michael Dell was already a successful businessman. From his parents’ home in Houston, Dell ran a mail-order stamp-trading business that, within a few months, grossed over $2,000. At 16 he sold subscriptions to the “Houston Post,” and at 17 Dell bought his first BMW. When he enrolled at the University of Texas in 1983, he was thoroughly bitten by the business bug. Dell started college as a...
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...[pic] SONY CORPORATION 1.0 Company Profile: SONY Corporation (TYO: 6758, NYSE: SNE), or the SONY Joint- Stock Company, is called SONY for short, For the corporate headquarters, Tokyo, Japan is the giant of SONY that across digital, daily necessities, the world's entertainment, SONY predecessor was called "Tokyo Tsushin Kogyo Co., Ltd.". SONY was founded in May 1946, and establish by Akio Morata, who was good at disposing the public relations, and Masaru Ibuka, that has the R& D background (research and development background). The current management team is common leadership by Howard Stringer and Chubachi, who has the R & D qualifications. (http://wenku.baidu.com/view/7f91731b227916888486d74f.html-18/06/2011) Picture 1：Akio Morata Picture 2: Masaru Ibuka [pic] [pic] Source of Morita: http://baike.baidu.com/view/8896.htm Source of Ibuka: http://baike.baidu.com/view/8896.htm 1.1 Vision of SONY: To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services. （http://zhidao.baidu.com/question/232668661.html-18/06/2011） 1.2 Mission of SONY: SONY is committed to developing a wide range of innovative products and multimedia services that challenge the way consumers access and enjoy digital entertainment. By ensuring synergy between businesses within the organization, Sony is constantly striving to...
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...Introduction Laptops, notebooks, netbooks… these names are somewhat interchangeable, but the concept is still the same. A portable computer that can be transported from place to place and be used anywhere. It’s difficult to say who first invented the notebook, but one name that keeps being bandied about is Adam Osborne. Osborne’s “Osborne 1” was introduced in 1981 and didn’t look anything like the devices that are used today: thin, light, large screens can play slide shows (with the help from Power Point) and also play DVD’s and CD’s. This device weighed 20 lbs., had basic graphics, needed an external power supply, had only 64KB of RAM, had a basic CP/M operating system and cost…$1800.00.1 Lot of money back then. Needless to say, many things have changed along with the cost. But one thing hasn’t. That thing is power. All notebooks need power and have an internal power supply consisting of voltaic cells or batteries as we call them. These devices also come with a power cord so one could connect the device to an A/C source. The cells are usually in multiple sets from 4 to 12 cells and they add extra weight. Once the cells are depleted, one connects to an A/C source or put in new cells or you’re out of luck. Many have wished to harness another source that’s cheap and plentiful. One name that keeps coming up is Solar Power. Solar power would be ideal because nothing is cheaper and more available than sunlight. You could be just about anywhere and if the sun’s out, there’s your...
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...market reached a value of $142.9 billion in 2003, having grown with a compound annual growth rate (CAGR) of 0.7% in the 1999-2003 periods. The leading revenue source for the global PCs market in 2003 was the desktop sector, which accounted for 69.3% of the market’s value. In value terms, this sector was worth $99 billion in 2003. During the next five years, the market is expected to experience steadily growing growth rates. By 2008, the market is forecast to reach a value of $158.2 billion, equating to a CAGR of 2.1% in the 2003-2008 period.” (Datamonitor, 2010) b. The Company “Lenovo Group (Lenovo) is engaged in the manufacturing of personal computers (PCs) related IT products, and services. The group also provides a range of notebook computers, desktop computers and servers. It divested the...
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...Notebook PC User Manual April 2011 E6591 Notebook PC User Manual Table of Contents Chapter 1: Introducing the Notebook PC About This User’s Manual.................................................................................6 Notes for This Manual........................................................................................6 Safety Precautions..............................................................................................7 Preparing your Notebook PC........................................................................11 Chapter 2: Knowing the parts Top Side (on selected models).....................................................................14 Bottom Side (on selected models)..............................................................18 Right Side (on selected models)..................................................................21 Left Side .............................................................................................................24 Rear Side (on selected models)..................................................................26 Front Side (on selected models)...............................................................27 Chapter 3: Getting Started Power System.....................................................................................................30 Using AC Power................................................................................................30 Using Battery Power........
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...Lenovo, China’s largest PC maker, made headlines around the world. A relative upstart in the business, founded with $25,000 of seed capital from the Chinese Academy of Sciences, Lenovo was acquiring the IBM division that invented the PC in 1981. While Lenovo was arguably the best known brand in China and had some brand presence in Asia, it was virtually unknown to the rest of the world. In 2004, over 90% of Lenovo’s revenues came from China (see Exhibit 1 for financials).2 But with this major deal, Lenovo aimed to become a global technology giant. Annual revenues would triple to $12 billion, making Lenovo the third-largest PC maker in the world after Dell and Hewlett-Packard. As a new multinational with 20,000 employees operating in 138 countries, Lenovo needed a global marketing and branding strategy to match its new reach. This meant determining what Lenovo stood for and designing products that supported that claim. In January 2006, 13 months after the deal was announced and eight months after it closed, Lenovo was preparing for the intense limelight that would come with its sponsorship of the February 2006 Turin Winter Olympics. There it planned to introduce a Lenovo-branded product line designed from the bottom up for small and medium enterprises, a move considered bold and risky by industry observers. The Global PC Industry History Twenty-five years before this landmark deal, IBM introduced its first PC after...
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...Introduction Laptops, notebooks, netbooks… these names are somewhat interchangeable, but the concept is still the same. A portable computer that can be transported from place to place and be used anywhere. It’s difficult to say who first invented the notebook, but one name that keeps being bandied about is Adam Osborne. Osborne’s “Osborne 1” was introduced in 1981 and didn’t look anything like the devices that are used today: thin, light, large screens can play slide shows (with the help from Power Point) and also play DVD’s and CD’s. This device weighed 20 lbs., had basic graphics, needed an external power supply, had only 64KB of RAM, had a basic CP/M operating system and cost…$1800.00.1 Lot of money back then. Needless to say, many things have changed along with the cost. But one thing hasn’t. That thing is power. All notebooks need power and have an internal power supply consisting of voltaic cells or batteries as we call them. These devices also come with a power cord so one could connect the device to an A/C source. The cells are usually in multiple sets from 4 to 12 cells and they add extra weight. Once the cells are depleted, one connects to an A/C source or put in new cells or you’re out of luck. Many have wished to harness another source that’s cheap and plentiful. One name that keeps coming up is Solar Power. Solar power would be ideal because nothing is cheaper and more available than sunlight. You could be just about anywhere and if the sun’s out, there’s your...
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...with higher mortgage loans, less people buy house less needs of washing machine. ------------------------------------------------- Assignment Hints: 1. What are the opportunities and challenges do you think Old Chunky will face in international market? Opportunities: * Increase large market share/sales (eg. sell to Muslim or non Muslim countries because food is halal) * Enhance brand image/recognition (intangible assets) * Technology transfer (eg. Singapore to a more advance country or a 3rd world country) Brand name “Coca Cola” is worth $25 billion in 2008 Bank Interest Rate: Japan (0%) Australia (5%) Challenges: 1. Competitors (Local understanding of their preferences) 2. Bank loans 3. Investors/ ventures capitalist (1 successful business out of 10, enough to cover all the 9 losses) 4. Policy in that country B2B (Business to Business) / G2G (Government to Government) 2. What do you think are the impacts of international marketing on its 4Ps (marketing mix)? Marketing 4Ps: * Price: Adopt a varying price. (Multi/Different pricing) * Product: Will change according to country. (Use Glocal method) * Global + Local GloCal. * GloCal:...
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...quality service and innovative design. In December 2004, the PC division of IBM including the "Think" series was sold to Lenovo Group, which is the biggest PC manufacturer in China. This acquisition has been considered as an important step for Lenovo's going global. Today, Lenovo has become one of biggest PC makers in the world. ▪ Important Issues 1. the global market outside of China Lenovo has been the leader in Chinese PC market since 1996. It announced the entering into global market by taking over IBM PC in 2004. If we look at Lenovo's annual reports of the recent years, about half of the sales have always been completed in China. Although Lenovo has got a quite good performance in this biggest PC market in the world, in other countries, the influence of this brand is still limited. taking the world's second PC market - America for example, after IBM PC has been sold, the five biggest PC market share became HP, Dell, Apple, Toshiba and Acer. Lenovo has not been able to entered the main PC market in US yet, while IBM has already quit the competition. Table 1: Top 5 Vendors, Worldwide PC shipments, Second Quarter 2011 Rank|Vendor|2011 Shipments|Market Share|2010 Shipments|Market Share|2Q11/2010 Growth| 1|HP|15,263|18.1%|14,823|18.0%|3.0%| 2|Dell|10,927|12.9%|10,626|12.9%|2.8%| 3|Lenovo|10,276|12.2%|8,363|10.2%|22.9%| 4|Acer Group|9,160|10.9%|10,190|12.4%|-10.1%| 5|ASUS|4,468|5.3%|4,216|5.1%|6.0%| Table 2: Top 5 Vendors, US PC shipments,...
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...which Lenovo will acquire IBM's Personal Computing Division to form the world's third-largest PC business, bringing IBM's leading enterprise-class PC technologies to the consumer market and giving Lenovo global market reach beyond China and Asia. Lenovo will have combined annual PC revenue of approximately US$12 billion and volume of 11.9 million units, based on 2003 business results — a fourfold increase in Lenovo's current PC business. Lenovo's new PC business will benefit from a powerful worldwide distribution and sales network covering 160 countries, global brand recognition through the combination of IBM's highly regarded "Think" brand notebook franchise and Lenovo's leading brand recognition in China, enhanced service and support for consumers and enterprise clients, and consumer strength and market leadership in China, the world's fastest growing IT market. After the transaction is completed, Lenovo will boast leading notebook enterprise offerings, leading R&D and expertise...
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...Introduction Lenovo was founded in 1984 as one of the institute-sponsored companies in Beijing. It started as the New Technology Development Company (NTD Co.) of the Institute of Computing Technology (ICT) of the Chinese Academy of Sciences (CAS) and considered a pioneer of Chinese market reform in the science and technology sectors. The company’s first technological innovation, a Chinese-language add-on card, was stemmed from ICT researcher Ni Guangnan. The name of the add-on card- Lianxiang- remains the Chinese name of Lenovo to this day. The company expands in Hong Kong that allowed them to raise its capital and overcome Lenovo’s previous experience in the global IT industry with a more international partner. In 1988, the company was restructured into Legend Computer Group Co. In the early 1990’s, the company was the largest among several domestic PC makers. In 1992, as the tariffs on imported PCs in China were reduced and import quotas were eliminated, foreign PC makers had a distinct price advantage over Legend. Consequently, Legend became sales and distributive representatives of American and Japanese computer companies in China. However, this became very strategic for Legend as it developed both technical and management expertise from its Hong Kong operation and from its foreign partners such as HP. Legend gain an advantage in building extensive distribution channels when the Chinese government restricted establishing distribution and retail operations of foreign companies...
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...demand for high-technology increased sharply in last two decades. As the proof of this fact I intend to provide brief information about Panasonic Corporation which is specialized to produce different type of electronics. Product. In XXI century electronics has assumed a dominating role in every field, therefore Panasonic Corporation provides 3 categories of products such as consumer, business and professional, also industrial solution products. Consumer goods include electronics such as mobile phone, home communication, home appliances and batteries. Business and professional products contain office communication, notebook PC, professional AV etc. And the last category, industrial solution goods involve electromechanicals and power suppliers. Location. The head office of the Panasonic Company is located in commercial and economic center of Japan, Osaka. The city is considered as capital of Osaka Prefecture in Kansai region. The GDP of Osaka including Kobe city is $341 billion, becoming a match of world’s top cities such as Paris and London. Company size....
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...Product: Lenovo refers to an organization which manufactures laptops, PC’s, workstations, software’s, accessories, storage devices. The number of IT software’s offered by Lenovo are marketed under the name Think Vantage (ThinkPad) has been generating about half of the revenues in China. Lenovo’s major chunk of business comes from selling desktops, laptops & notebooks & the workstations. The highest revenue generating countries refers to Japan, China & US. Lenovo adopts a special product strategy in Chinese market to strengthen its market leader position in the personal computer market by a good understanding of Chinese market and customers’ needs in comparison to some foreign and domestic competitors. For instance, the product service offered by Lenovo to its customers such as the product maintenance service, special package and rich category of products practice so well to meet the expectations of customers on computer products in a large extent. Price: Lenovo adopted a comparatively flexible price strategy to gain more market share from the domestic and foreign competitors. Based on different levels of consumers, Lenovo developed different prices, by creating differentiated products to meet different consumer groups. Such as high quality and relatively lower price product towards the high end market, the good quality and acceptable cheap price towards to the low to middle end market. This strategy attracts a certain number of customers to develop their brand...
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...how macromarketing systems develop. 4. Understand why marketing is crucial to economic development and our global economy. 5. Know why marketing special— ists—including middlemen and — facilitators—develop. 6. Know the marketing functions and who performs them. 7. Understand the important new terms (shown in red). www.mhhe. When it’s time to roll out of bed in the morning, does your General Electric alarm wake you with a buzzer—or by playing your favorite radio station? Is the station playing rock, classical, or country music—or perhaps a Red Cross ad asking you to contribute blood? Will you slip into your Levi’s jeans, your shirt from L. L. Bean, and your Reeboks, or does the day call for your Brooks Brothers interviewing suit? Will breakfast be Lender’s Bagels with cream cheese or Kellogg’s Frosted Flakes—made with grain from America’s heartland—or some extra large eggs and Oscar Mayer bacon cooked in a Panasonic microwave oven imported from Japan? Will you drink decaffeinated Maxwell House coffee—grown in Colombia—or some Tang instant juice? Will you eat at home or is this a day to meet a friend at the Marriott-run cafeteria—where you’ll pay someone else to serve your breakfast? After breakfast, will you head off to school or work in a Kia Sportage, on your in-line skates, or on the bus that the city bought from General Motors? When you think about it, you can’t get very far into a day without bumping into marketing— and what the whole marketing system does for...
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