...that use our Betamax system?” Sony’s arrogant attitude did not go over well with potential partners. JVC replied that it preferred to develop its own technology. Konosuke Matsushita, in turn, was unhappy that he had not been consulted about the Betamax design. He, too, declined to participate in producing VCRs for the Betamax system. Two years later, JVC introduced the Video Home System (VHS), and in compatible alternative to Betamax. Sony had a head start: when JVC introduced VHS in September 1976, more than 100,000 Betamax machines had already been sold. Several other systems also appeared briefly, but none generated much interest from consumers. Initially, VHS had a longer recording time but lower picture quality. However, these technical differences were short-lived, and over the next few years the two standards leap-frogged each other repeatedly. Perhaps more important, JVC followed more open policy for partners. Says Morita: “we didn’t put enough effort into making a family.… The other side, coming later, made a family.” By 1984, while the Beta group numbered only a dozen firms, the VHS group included 40 companies, among them Grundig, Hitachi, Matsushita,...
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...Q1 a) The competitive advantage of a firm is a quality that the organization has that is not duplicated by another organization. This quality is what gives the firm the lead or differentiates the firm from others within the market or industry. After reading “Russia’s Factories Gear up for Efficiency” the competitive advantage cane be identified as offering new products specifically new components for railways and the oil industry. This is Chelyabinsk Forge-and-Press’s competitive advantage as no other firm is ale to offer these new products to these emerging industries. Another competitive advantage can be identified as a large quantity of parts offered. The article states, “The most important thing is that we now make far, far more kinds of parts”. This statement identifies another competitive advantage, as they are able to work with more clients and customers than other competitors. Also noted is the fact that the workers proudly show off metal links and other products they produce illustrating a level of quality that it not matched. This could be another competitive advantage of Chelyabinsk Forge-and-Press. b) After consulting Kaizen Institute a number of changes were made. These changes are listed as follows: a. Factory wide goals are implemented rather than production targets for individual employees. Now the employees are focused on the whole organization rather than a specific task. b. Excess time used to step off the line to fetch parts. The change was to reorganize...
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...Matthew Ramos Business Opportunities 1 III – Entrepreneurship Ms. MJ Ganaden 5 great products that failed in the market Sony Betamax The Betamax video recorder hit stores in 1975. A year later, Sony's rival released another video recorder -- the VHS. By early 1977, four other companies were selling VHS machines. Meanwhile, Sony chose not to license Betamax technology. Because the two formats were incompatible, consumers had to choose between the two. As Sony was the lone Betamax producer, you can guess which system they chose. McDonald's Arch Deluxe In an effort to class up the McDonald's brand, the company created the Arch Deluxe, a product marketed towards adults with more sophisticated palates. Just one problem -- people don't go to McDonald's for sophistication. McDonald's customers know what they want, and what they want is a classic and convenient burger. Needless to say, when the Arch Deluxe debuted in 1996, consumers weren't lovin' it. Bic Underwear Bic has built its brand on the convenience of disposable products. Disposable razors? Disposable lighters? Convenient and affordable. Disposable underwear? Just plain weird. Other than the disposability factor, consumers could not find a link between the underwear and Bic's other products. With out a unifying factor, people were just confused. In addition, the idea of buying intimate attire from a company that also produces pens apparently does not appeal to most women. Apple Newton Arguably...
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...Q1. Would you have been long or short Blockbuster stock at the time of the case? How about Netflix? Why ? A1. Blockbuster was a giant in the rental industry. It enjoyed record levels of revenue and profitability up till 2002. Their main business strategy was around expanding geographic coverage and increase their share in market. They banked mostly on new releases and hits and the concept of an extended viewing fees. This was a good strategy for the time then, so I would have been a long Blockbuster up until 2002. The Blockbuster would have seemed as a solid investment. But approaching towards 2004 I would have changed my position to short as for the lowering of market shares of Blockbuster could have been anticipated. Blockbuster tried to enter the online services quite late, by which time Netflix, Redbox and other video on demand services had come into play. Blockbuster tried to use their current assets to advantage by integrating the existing blockbuster stores with online services, but they did not have a very strong model at hand. They also waived off the late fees which was a big source of their revenues, so they were incurring losses overall. As in the case of Netflix initially I would have been a short position as they targeted a very small amount of audience initially and they depended on the growth of technology in households. But as the technology grew, Netflix maintained its pace and proved itself to be the dark horse. So seeing its growth, I would have taken...
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...Reed Hastings founded Netflix in 1997 as a home movie service that used the U.S. Postal Service to deliver DVD’s to subscribers. This alternative to the local movie rental store was inspired by Reed’s own experience with extended rental and late fees typically imposed by retail movie rental outlets. While Netflix initially used a similar pricing model, the easily mailed DVD’s appealed to customers at a time when DVD players were gaining popularity and movie rental outlets were still primarily renting VHS cassettes. By 2006 Netflix achieved revenue of nearly $1 billion, offered 70,000 titles on 55 million DVD’s through its 44 distribution centers with a 90% of its subscribers receiving rentals within 1 day. As DVD’s were quickly adopted into American households and retail movie rental outlets, Netflix’s slower delivery service at the same pricing model began to offer less of a service to customers. In response Netflix shifted its business model to a no-late-fee subscription in 1999. Customers were allowed to have multiple movies at any given time and to receive up to four new movies a month. This quickly changed to unlimited rentals. They also developed their distribution network and worked with the USPS to assure quick turnaround time for movies. Netflix core competency is providing home entertainment personalized to the subscribers taste. Netflix’s proprietary recommendation system serves as a merchandising system. Through the use of an initial customer survey and...
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...transformed by the information age which opened the doors to a whole new world of possibilities. A few decades ago our telecommunications flourished with the invention of the television, the radio and the phonograph, which functioned based on an analog format. These inventions allowed for broadcast of radio and television news and shows across the United States. Record music and movies in VHS format were also introduced to American homes. With the introduction of the digital format our telecommunications received a tremendous boost, and some of the early media outlets were replaced by more efficient ways of communication. This paper will describe some of the factors behind the recent loss of audience and sales in such media outlets as record music, movies, network TV, DVDs and video games. The introduction of the digital format changed the way we watch TV; high definition made possible to see a picture like never before, like if we were looking through a window. Digitalization allowed for a much better sound and picture quality in CDs and DVDs, which replaced the vinyl disc and the VHS tape. These media, however, continued to evolution so much so that in recent years media outlets such as newspapers, movies, network TV, DVDs and video games became obsolete. Digital is the key factor. Media outlets such as newspapers, movies, DVDs and video games are more tangible and cost more money to produce. These tangible versions of media are temporary, while digital is a...
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