Ipad as Disruptive Technology
JIMMA UNIVERSITY
BUSINESS AND ECONOMICS COLLEGE
MBA PROGRAM
MANAGEMENT INFORMATION SYSTEMS (MBA 641)
ASSIGNMENT ON IPAD AS DISRUPTIVE TECHNOLOGY
SUBMITTED TO: YOSEPH TILAHUN
SUBMITTED BY: AKLILU GUULAY GHIDAY
April 7, 2014
CASE STUDY QUESTIONS
Evaluate the impact the ipad using Porter’s competitive forces model?
In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also four other forces in the industry’s environment. iPad enters the marketplace as a new entrant to compete with Amazon for the over e-book pricing and distribution, availing the text books on the ipad using special software, providing newspapers online, and replacing CDs and DVDs for music labels with the famous iTunes as substitute products. iPad is using Porter’s strengthening suppliers’ intimacy increasing publishers price for the e-books from $12 to $14 which is much higher than the purchase price offered by Amazon which is in average $9.95. The iPad is making an offer to the publishers to act as an agent selling the books of the publishers rather than distribution. The iPad is also pleasing the newspapers by enabling them with application to provide the newspapers on line and also the newspaper readers are happy to have the news papers online so that they can choose the articles they want to read rather than purchase of bulky pages of the newspaper so that customers are enjoining the technology and we can say there is customer intimacy too.
We can also see the iTunes application for downloading music as product differentiation and low cost leadership since customers are pleased with downloading the music at lower cost and with choice of choosing the music rather than buying the whole album.
Apple efforts to struck deal with text book publishers to avail school text books on the iPad which could be seen as a focus by the company on the Niche market.
What makes
BUSINESS AND ECONOMICS COLLEGE
MBA PROGRAM
MANAGEMENT INFORMATION SYSTEMS (MBA 641)
ASSIGNMENT ON IPAD AS DISRUPTIVE TECHNOLOGY
SUBMITTED TO: YOSEPH TILAHUN
SUBMITTED BY: AKLILU GUULAY GHIDAY
April 7, 2014
CASE STUDY QUESTIONS
Evaluate the impact the ipad using Porter’s competitive forces model?
In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also four other forces in the industry’s environment. iPad enters the marketplace as a new entrant to compete with Amazon for the over e-book pricing and distribution, availing the text books on the ipad using special software, providing newspapers online, and replacing CDs and DVDs for music labels with the famous iTunes as substitute products. iPad is using Porter’s strengthening suppliers’ intimacy increasing publishers price for the e-books from $12 to $14 which is much higher than the purchase price offered by Amazon which is in average $9.95. The iPad is making an offer to the publishers to act as an agent selling the books of the publishers rather than distribution. The iPad is also pleasing the newspapers by enabling them with application to provide the newspapers on line and also the newspaper readers are happy to have the news papers online so that they can choose the articles they want to read rather than purchase of bulky pages of the newspaper so that customers are enjoining the technology and we can say there is customer intimacy too.
We can also see the iTunes application for downloading music as product differentiation and low cost leadership since customers are pleased with downloading the music at lower cost and with choice of choosing the music rather than buying the whole album.
Apple efforts to struck deal with text book publishers to avail school text books on the iPad which could be seen as a focus by the company on the Niche market.
What makes