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INTRODUCTION
This case features a highly diversified software company at the top of its game. Content is provided to enable a thorough situation analysis. A discussion of industry trends, the competitive environment, and competitor information is included, along with internal elements regarding Adobe’s strategic approach, product portfolio, culture, organizational structure, and human resources.
Primary among the company’s current strategic concerns is the need for Adobe to protect and strengthen its position of market leadership in the face of changing industry conditions. As competitors challenge the sustainability of Adobe’s business strategy for design software and digital
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Cloud Computing The rapid advent of on-demand software and storage services has introduced significant savings for corporate consumers. By running web applications from centralized servers, enterprises reduce hardware, maintenance, and licensing costs and increase the efficiency of computing. This trend threatens Adobe with a low cost, highly responsive, pay-as-you-use software alternative to its premium products.
Enterprise Marketing Management The software market targeted for the management of enterprise marketing is estimated to be worth $2.5 billion per year, and this figure is expected to double annually for the foreseeable future.
Global Markets Growth potential in emerging markets is extremely high. As economic interdependence intensifies across regional borders, organizations will increase their reliance on Internet-based information technology. This provides another opportunity for Adobe to expand the use of its products and services and to secure long-term revenue streams.
Adobe must weigh the advantages of pioneering and the company’s desire to expand against industry and economic uncertainties. The rapid rate of change associated with the online environment, especially related to media and data exchange platforms and file encoding formats, impacts the company’s strategic decisions. As the market leader in media creation and editing software, perhaps
equipment in 2010, were considered as well. These values were converted to after-tax values by considering sales taxes and tax shields. The NWC (net working capital) requirement of the project was deemed to be 26.15% of incremental sales. To translate this into cash flows, we calculated the NWC change year-over -year. Additionally, we assumed management would maintain their commitment to expend 5% of sales towards R&D. Although Flash has already incurred a sunk cost of $400,000 to develop the prototypes for this new product line, it is reasonable to assume ongoing R&D expenditures to ensure the development of future iterations of this product once the current version becomes obsolete. Finally, the sum of these cash flows was discounted to the beginning of 2010 at a WACC of 10.05% to arrive at a final value of $757,528 for this five year commitment. The pursuit of this growth opportunity responds to the technological changes in the industry, resulting in high quality products, which are wellreceived by customers. The dedication to innovation and research will allow Flash to thrive in the market and maintain their competitive
They also understand that people will often pay more for products that exactly meet their needs. Geoffrey Moore’s method of selecting the target market by harvesting application proposals from the entire Documentum organization is cumbersome and lacks focus on the company’s core functions. Moore’s method would require the company to start all over in a new industry before they secure their target vertical market. Also, the company is burning through one million cash per quarter with four million starting cash. Documentum should focus on their area of expertise to slow the rapid cash drain before venturing into uncharted waters with a whole set of unknown issues.
The computer software industry is a relatively new development on the international market place. Only a few decades ago, there was no such industry at all. Thanks to a number of innovative software developers, the rise of the industry has become a booming success. The industry itself increased dramatically in the 1990s. It was during this period that software was growing in a number of other supporting industries. Software soon became an integral part of industries like healthcare, business applications like databases and network structures, personal finance, and education (Kent & Williams 1997). The more intertwined it became with other business applications, the more successful software became as a
The Case for this module centers on an organization implementing a new computer-based information processing system. Thousands of organizations go through the same kind of process every day—you yourself may have been involved in one or more such "technology transformations." Despite this body of experience; the advice of thousands of consultants, researchers, and computer gurus; and the leverage of multibillion-dollar corporations such as Microsoft, Google, and Oracle; a large proportion of these
So, by 2004, it became clear the Company was so early that the market. From re-launching our eBookstore just over 6 years ago, every metric the company’s track in the digital business is exceeding expectations of the market. The company went from zero share to capture over 20% of the digital trade book market, which got a higher share than the 18%, these eBook sales have been driving the growth of BN.com business, generating over 50% year over year as a comparative revenue. As the early success in this emerging market could be primarily attributed to a few
We are aware by now that planning and executing one strategy over a decade is not feasible in today's ever-changing market. In order to be competitive in the market, you must be flexible and move on opportunities that will give you a competitive edge against your competitors.
Microsoft is ranked 37 in the Fortune 500 list of companies (CNN, 2012). It is the world’s largest software company (Turits & Wesman, 2012), and is composed of five separate divisions: Windows, Business, Servers and Tools, Entertainment and Devices, and Online. Investors should look at how a company meets the needs of its stakeholders and perform a strength, weakness, opportunity, and threat (SWOT) analysis. By looking at how Microsoft meets the needs of its stakeholders, investors can determine if the company can sustain a positive image with everyone involved, both internally and externally. Analyzing the strengths, weaknesses,
The advent of Internet has allowed companies to offer their goods and services throughout the world. Not only has the Internet opened up the floodgates of International marketing, it has also brought with it many other challenges such as cultural, political, and geo-economics challenges. In order to be successful in these global markets, companies must be very diligent in handling these challenges.
Having a recent demand for flash games, this shows that they are able to adapt to new demands
Take a look at Canon, its strategies over the years have been very effective in balancing growth of market share and profit in the imaging industry which made Canon a leader in the imaging industry group. Other than the imaging industry, Canon also took a piece of pie in business machines (printer, photocopier) markets and industry machines (semiconductor production equipment, medical equipments…etc) markets (see Picture 2.1). Canon has since late 1960s been focusing on strategic planning process, gradually expanded its business into business machines market and adopting a corporate level strategy of horizontal diversification based on its core competencies. Such continuous development and adoption of various strategies keeps
Marketing is selling the product goods and service by knowing the needs and wants of the customer and consumer (Kotler P, 2009). Marketing Management expertise has capable of knowing the change of an organisation to manage both the internal and external challenges of environment (Cant M C, et al, 2009). A company needs to classify the customer needs and identifies the demand of the supplying
The issues described must be fully understood in order for a strategic process to be established that embraces digital technology. Porter’s Five Forces Model and a SWOT Analysis will be used to scrutinize the current marketplace. Once fully analyzed, recommendations for
Whether it’s called Cloud Computing or On-demand Computing, Software as a Service, or the Internet as Platform, the common element is a shift in the geography of computation. When you create a spreadsheet with the Google Docs service, major components of the software reside on unseen computers, whereabouts unknown, possibly scattered across continents. This affects all levels of the computational ecosystem, from casual user to software developer, IT manager, even hardware manufacturer. Recently, a lot of vendors have started talking about “cloud computing” in their marketing materials. Citing a research published by Merrill Lynch entitled “The Cloud Wars: $100+ billion at stake,” Merrill Lynch has estimated a $160- billion addressable market opportunity, including $95- billion in business and productivity applications, and another $65-billion in online advertising for Cloud Computing. But the main question is whether the users are ready to give up using services on their local machines and shift to the Cloud since shifting to cloud computing has both advantages and disadvantages for all possible users; nevertheless, they may have different level of importance for different users
The Internet Software and Services industry is currently in the growth phase of the industry life cycle. Hook defines the growth stage as “Product acceptance is established. Rollout begins and growth accelerates in sales and earnings. Proper execution of strategy remains an issue” (Hook 89).
A problem with technology is that it is rapidly changing and publishing companies must always look at innovative ways to survive and compete with other companies.