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    07-09-21 BA6331 Class Notes

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    Umakant Jayaram
    Blockbuster - Market Maturity - emergence of a dominant market position Value Drivers - store experience o display, atmosphere, ancillary products - store location - breadth of movies - Depth of movies Customization - Brand / reputation Disvalues - late fees Cost Drivers - Economies of scale - Procurement - Distribution - Vertical integration o Logistics - Learning curve o new stores Retention - Marginal Imitators - Early o -

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    07-09-21 BA6331 Class Notes

    Uploaded by

    Umakant Jayaram
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    Blockbuster - Market Maturity - emergence of a dominant market position Value Drivers - store experience o display, atmosphere, ancillary products - store location - breadth of movies - Depth of movies Customization - Brand / reputation Disvalues - late fees Cost Drivers - Economies of scale - Procurement - Distribution - Vertical integration o Logistics - Learning curve o new stores Retention - Marginal Imitators - Early o -

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    Blockbuster - Market Maturity - emergence of a dominant market position Value Drivers - store experience o display, atmosphere, ancillary products - store location - breadth of movies - Depth of movies Customization - Brand / reputation Disvalues - late fees Cost Drivers - Economies of scale - Procurement - Distribution - Vertical integration o Logistics - Learning curve o new stores Retention - Marginal Imitators - Early o -

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    26 views2 pages

    07-09-21 BA6331 Class Notes

    Uploaded by

    Umakant Jayaram
    Blockbuster - Market Maturity - emergence of a dominant market position Value Drivers - store experience o display, atmosphere, ancillary products - store location - breadth of movies - Depth of movies Customization - Brand / reputation Disvalues - late fees Cost Drivers - Economies of scale - Procurement - Distribution - Vertical integration o Logistics - Learning curve o new stores Retention - Marginal Imitators - Early o -

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    BA 6331: Business Strategy Blockbuster - Market Maturity emergence of a dominant market position Value Drivers - Store experience o display,

    , atmosphere, ancillary products - Store location - Breadth of movies - Depth of movies - Customization - Brand / reputation Disvalues - Late fees Cost Drivers - Economies of scale - Procurement - Distribution - Vertical integration o Logistics - Learning curve o Operations o New stores Retention - Marginal Imitators - Early o - Late o

    None Development costs

    Personal Video Records / Digital Video Recorders - Time shifting - Digital content NetFlix - No store o No atmosphere o No location - Greater breadth - Depth - Customization - Reputation - No impulse must plan ahead - No late fees Video on Demand No store Potentially many titles Depth not an issue Consistency of functionality o Speed

    o Quality o Seamless o Features No late fees

    Incumbent Response to Substitute enter substitute industry 1) Control complementary assets a. Typically, access to customer 2) Overcome isolating mechanisms a. Overcome protecting substitute b. Development costs, property rights c. High absorptive capacity 3) Overcome internal opportunity costs 1) Blockbuster online 2) Lower costs a. Stores b. Infrastructure 3) Online streaming 4) Rationalize portfolio of stores 1. 2. 3. 4. 5. Startups invest in low cost / low price / lower value products Startups sell initially in a niche, not core market Incumbents dont control compliments Customer preferences shift toward price Startups have strong dynamic growth cycle

    Aurora 1) Medium functionality / much lower costs a. CMOS b. NT / Off the Shelf 2) Micro-controllers ASICs core market 3) Teradynes sales force not an impediment to entry 4) ? 5) ? Challenges / Benefits for / from Teradyne - capabilities - money - resources - management 1) Resource allocation a. Budget constraint b. Timing of shift to new platform c. Forecasted slowdown 2)

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