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Adobe Systems Case Discussion

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Adobe Systems

SYSM6332- summer 2015
Discussion Case 1

David Reboredo
Daniel Torres

Background:

* Adobe Systems was founded in 1982 by John Warnock and Charles Geschke. Initially the company was operating only in the graphics and publishing market. First they introduced PostScript as a desktop publishing application, followed by Illustrator, Photoshop and InDesign, all of which turned out to be exceptionally successful. The next step was introducing Acrobat and the PDF document format, which also quickly became an industry standard.

* In the subsequent years Adobe added to its product mix successful products like PageMaker, After Effects and GoLive by acquisition. Despite all these achievements, the company experienced substantial difficulties during 1998. Important product delivery date was missed, sales declined and the stock price plummeted encouraging a takeover attempt by one of their direct competitors, Quark, Inc.

* Bruce Chizen, who was appointed as a CEO later in 2000, managed to stabilize the situation. This was not an easy task, as most of Adobe's executive management left the company while he had to lead a drastic restructuring of the business. Adobe had to carry out a major reform in order to be more profitable.

Case Overview: * This case describes the early success Adobe had establishing Postscript as the preferred software application for printing documents. The case describes the strategy Adobe set in motion to secure script position as the established utility for printer manufactures, publishers, PC OEMs/ODMs and software developers. * Adobe also started to expand the product offering when they introduced Portable Document Format (PDF) and the companionship utilities Reader and Acrobat Business Tools. This case describes the strategy Adobe implemented in order to make these products the defacto standards for electronic

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