1. Interactive session
Intro to IT Fundamentals
Tutorial 3 08 / 10 /2012
Tutor’s Name: Rachel Yen Chong
2. Assignment 2 3. Review Questions
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Interactive session: Technology:
Is IPad a Disruptive Technology?
1. Evaluate the impact of the iPad using Porter’s competitive forces model. 2. What makes the iPad a disruptive technology? Who are likely to be the winners and losers if the iPad becomes a hit? Why? 3. What effects will the iPad have on the business models of Apple, content creators, and distributors?
1. Evaluate the impact of the iPad using Porter's competitive forces model.
• Traditional competitors include television, printed media, radio, movie distributors, cell phone makers and carriers, and even other Web sites. • New market entrants, including e‐book readers like Amazon's Kindle and Sony's E‐book reader, are flooding the marketplace with an inevitable shake‐out coming in the future. • As a substitute product and service the iPad will not supplant laptops or netbooks immediately but may take sales away from these two devices in the future. The immediate impact of substitution will be on the publishing and media industries. • Customers have a new outlet in which to watch television on the go and read content online rather than in traditional print modes. • Suppliers from the publishing and media content industries will have to stop investing in traditional delivery platforms and increase investments in new platforms. Apple's pricing policies are more in tune with the needs and wants of authors and publishers than with customers ‐ an interesting twist.
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2. What makes the iPad a disruptive technology? Who are likely to be the winners and losers if the iPad becomes a hit? Why?
• The iPad is disruptive because it causes many traditional companies ‐ content suppliers and carriers ‐ to revise their traditional business models. That causes