iPod Article Should they share technology

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iPod Article Should they share technology?
The search for digital music nirvana
BY STEVEN PATRICK IT'S the day after tomorrow
figuratively speaking and youre still a huge
Radiohead fan. The band has released a
preview track from its upcoming album, and
you've put in a pre-order via your prepaid card. 
On the date of its release, the song is beamed
to your cellphone, and you transfer it to your
iPod player. You savour Thom Yorke's tortured
vocals and the band's guitar-cum-electronica
histrionics.  But you have some guilty pleasures
too. You want the new Britney comeback single
with that radio-friendly chorus, and you don't
want your friends to know.  You do the same and
begin to create your own, a la carte version of
the week's best music. Your next-door-neighbour,
on the other hand, tries to get the Britney track
for free via an illegal peer-to-peer (P2P)
service. He gets the track and boasts about it to
his wife and kids.  Two weeks later, he is threa
tened with possible legal action and his wife
files for divorce on the grounds of bad taste ...
but that's another story.  What a difference a
couple of years and Steve Jobs can make to the
music business. It seemed like only yesterday
(when we were partying like it was 1999) that
Napster ravaged the music industry, shaking the
very pillars of its foundation, threatening to
turn it into a rubble of free digital downloads. 
Even the most optimistic reckonings say that
the digital music space is 2 of music sales
right now. There is no point fighting over 2. We
all need to float more boats, he said. 
However, we remain convinced that the digital
medium will make life easier in the longer term,
he said.  Kennedy said that there were a lot of
kinks that the music business still had to iron
out.The prosperity of the music industry lies in
the ubiquity of music. Any music, anywhere, on
any device, on any format, for any consumer at
any time just as long as it is properly paid
for, he said.  EMI Music senior vice-president
of digital development and distribution Ted Cohen
said that incompatible Digital Rights Management
(DRM) technology is preventing consumers from
listening to music. He urged the industry to
harmonise its efforts to provide ease-of-use and
flexibility to consumers.  As it stands
presently, an owner of an iPod can only purchase
music from Apple's iTunes music store and nowhere
else. An attendee at another Midem event said
that Apple doesn't care about selling music, it
cares about selling iPods.  Incidentally, Apple
now sells more iPods than computers. The
Cupertino, California-based tech giant said
recently that it has sold more than 10 million
iPods since its launch in 2001, and now claims a
65 share of the hard-drive-based portable music
player market. 
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Exercise

• Should Starbucks sell toothpaste?
• If so, how?
• What sort of corporate strategy would this be?

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Market Entry The action to begin conducting
business in a particular industry
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• Conditions Affecting Entry
• Internal
• Competitive Advantages
• Personal Characteristics (Entrepreneur)
• External
• Demand
• Supply
• Legitimation

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California Condor Restoration 10,000 years ago, C
alifornia Condors ranged over much of North
America, but by the early 1980s there were only
21 or 22 condors. In 1987, the last wild condors
were captured to serve in a captive breeding
program. By 1995, the population had grown to
103 and some were in remote California and
Arizona. In 2002, 2 condor eggs hatched in Sespe
Wilderness.
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California condor Gymnogyps Californianus
Identification Tips Length 45 inches Wings
pan 120 inches Sexes similar Huge,
broad-winged, short-tailed, soaring bird
Longish, hooked bill Holds wings relat
ively flat while soaring and gliding
Unfeathered head White underwing cover
ts Plumage dark Rare and local in th
e wild
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Legitimation

• Process of a market becoming taken-for-granted
• Getting past birth in the product life cycle
• Sony Betamax
• Blue Ray vs. HD-DVD
• i-Pod vs. Zune
• Tofu House

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• Market Entry Game (w / Legitimation Constraint)
• Method
• Computerized Experiment
• Market Capacity Constraints
• 20 Subjects x 100 Trials x 3 Conditions
• .10 to stay at home, risky entry

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• Results
• All Conditions
• Entry to Market Correlation .79 to .99
• Improve over time
• Individual differences
• Market Legitimation
• No market legitimation near threshold

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• Conclusions
• Coordination, but no parato optimality, without
  communication
  
• Legitimation causes inefficiencies
• Individuals behave differently

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2 Forms of Economic Organization

• Market - Purchase outside of firm(buy)
• Buy help
• Hierarchy - Purchase inside firm(make)
• Learn to do yourself

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Organizational Structure

• How job tasks are formally divided, grouped, and
  coordinated
  
• The pattern of work, jobs, and groups of jobs
  w/in an org
  

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Strategy Formulation ? Strategy
Implementation (Part 3) (Part 4)

• Strategy ? Structure
• (A. Chandler)

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2 Org Structure building blocks

• Differentiation
• Integration

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Differentiation

• Establish division of labor (A. Smith)
• one man draws out the wire, another straightens
  it, a third cuts it, a forth points it, a fifth
  grinds the head 48,000 pins/day vs. 10
  
• Vertical (hierarchy)
• Horizontal (job analysis, sub-units)

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IntegrationJobs, Functions, Divisions
Coordination

• Hierarchy of Authority (Managers)
• Direct Contact (Meetings)
• Integrating Groups (Planning Dept, Board)

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Why structures differ?

• Size (Big ? more)
• Organic vs. Mechanistic (Envir. Uncertainty vs.
  routinization)
  
• Strategy Culture (Chandler)

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Org Design by Function
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Org Design by Geography
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Org Design by Product Line
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Matrix Org Design

• Dual responsibilities and reporting
  relationships
  
• Connects functions w/ products
• Project manager has overall responsibility to
  select functional specialists

General Manager
Functional Departments
A
Project Managers A, B, C
B
C