Concept explainers
Case summary:
Person VR is the CEO of Company I from 2012. Previously she was in the position of vice president of sales, marketing, and strategy. Cloud computing, big data and analytics, and systems of engagement are three disruptions of Company I and its clients. Basically, Company I is a solutions company, which provides a solution for data-based problems. They have initiated the PC revolution in 1981.
The value chain of the entire industry is disintegrated due to the open standard in a personal computer. Person MC, who is an activist investor, stated that Company I is very slow to take advantage of the opportunities. It is stated that during the revenue drop of 6 percent and net income drop of 27 percent, Peron VR received the increased pay and $3.6 million annual bonus. During the time of critics, Person VR stated that she is focusing on Company I for a long-run.
To determine: Why Company I is underperforming the broader technology market for several years
Want to see the full answer?
Check out a sample textbook solutionChapter MC Solutions
Strategic Management
- Read the following information and watch the video carefully then respond to the questions that followes. Nike is the largest company worldwide in the athletic footwear, apparel, and equipment business. In the United States alone, the athletic footwear market alone was some $17 billion in 2019 and is expected to grow to $23 billion by 2023. In athletic footwear, Nike is leading with $22 billion in sales globally, followed by Adidan, Asics, Puma and Under Armour. In terms of athletic apparel, the global market is expected to grow from $181 billion in 2019 to $220 by 2024. Nike is also the lead in the market in terms of athletics apparel. Despite its success in the industry, when John Donahoe was appointed as the Nike’s new CEO, he had to deal with several internal and external challenges. Donahoe was appointed CEO at a time when the Oregon sports and apparel company faces a number of controversies, including when Nike-sponsored athletes were caught up in scandals; the ban of Alberto…arrow_forwardWhat kind of diversification is GE pursing? What are the sources of value creation with this type of diversification? How did GE lose $507 billion (more than 85 percent) of its market valuation since its peak? What went wrong? After leaving GE, Jeffery Immelt stated in 2018: “The notion of plugging financial services and industrial companies together, maybe it was a good idea at the point in time, but it is a uniquely bad idea now.” To what is Immelt referring? Why does he think is a bad idea? Do you agree? Why, or Why not? In the bestseller Good to Great, Jim Collins advances the hypothesis that the greatness of a leader is known only after the leader has departed. The business press has celebrated jack Welch as the greatest CEO of the last century. After reading this Minicase, do you agree with Collins’ strategic leadership hypothesis? Why or Why not? Note: When interviewed in 2018 about the GE situation, Jack Welch had this to say: “I give myself an A for the operation of GE, but an…arrow_forwardWhat is Dell Computer's source of competitive advantage? In a short paragraph, explain some of the steps Dell has taken to develop this advantage.arrow_forward
- What type of corporate diversification strategy (Richard Rumelt classification scheme) is Apple pursuing? Explain your rationalearrow_forwardThe United States Postal Service and Federal Express are UPS's two main competitors.What does UPS' technological leadership mean for them?arrow_forwardContrast the position between Apple and Nokia – to what extent has this dramatic shift in competitive position been driven by underlying core competencies, or are there other factors in play?arrow_forward
- How can IBM communicate its strategy to companies, cities, and governments?arrow_forwardPlease answer the following question in a paragraph. How do six flags expand their business against competitors?arrow_forwardBased on the case of Visa: Adapting to a World of Fintechs, provide answers to these questions: 1. What are the competitive advantages of Visa so that it becomes a global payments powerhouse? Using value chain analysis, identify the source of Visa's competitive advantage. 2. Why does the presence of Fintech threaten Visa's competitive position? 3. Provide recommendations on Visa's strategies to strengthen its competitive position in the face of Fintech. Defend, Collaborate or Embrace? Give an argument for your recommendation by using a pros and cons analysis or a criteria-based analysis.arrow_forward
- Give an answer to the following question: Southwest airlines have been the only consistently profitable airline in the United States over the past 30 years. Potential sources of this competitive advantage fall into two big categories: operational choices Southwest has made and Southwest’s approach to managing its people. Explain if Southwest’s operational capabilities are a source of sustained or temporary competitive advantage?arrow_forwardRead the “Tesla” Chaptercase at the end of Chapter 1, and then answer the following three questions in an initial post to express your original, relevant analyses and observations from the case: Do you agree with the assessment that Elon Musk and Tesla successfully fulfilled the first master plan published in 2006? Why or why not? To answer this question, apply the three-step process for crafting a good strategy explained in Section 1.1 (diagnose the competitive challenge, derive a guiding policy, and implement a set of coherent actions). Does Tesla have a good strategy? Why or why not? How do you know? Consider: By summer 2019, Tesla’s market cap had fallen by 30 percent to $45 billion, down from $65 billion a year earlier. Many wondered: Is Tesla in trouble? Describe the rationale behind Tesla’s new master plan. How does this new strategy help Tesla fulfill its vision? To view Tesla’s “Master Plan, Part Deux” in its entirety, see Tesla’s blog.arrow_forwardDiscuss the reasons why founder and CEO Mikitani feels it is imperative for Rakuten to expand beyond the boundaries of Japan. Provide examples to support your answer. How should Amazon and Alibaba combat the global expansion of Rakuten? Provide examples to support your answer. Describe any competitive advantages that Rakuten has in its competition with Amazon and Alibaba.arrow_forward