Tag Archives: Compact Discs

Questions on Chapter 7: Production Advantages Lost: Compact Discs, Data Switches and Toasters

If it’s a penny for your thoughts and you put in your two cents worth, then someone, somewhere is making a penny.” –Steven Wright

Chapter 7: Philips and Cisco in Competition Demysitified

The questions are on Chapter 7 (pages 137 to 159) from Competition Demystified. Also, read: An Open Letter to Warren Buffett Re: Cisco Systems http://www.capatcolumbia.com/Articles/Reports/Buffett.pdf and Philips Case Study: http://www.scribd.com/doc/81400135/pcd

Question 1: Discuss first mover conditions that Philips might have considered in entering the compact disc and compact disc player markets. Consider: market growth, establishment of standards specs, patents, customer captivity, economies of scale.

Question 2: Why was Cisco able to dominate the router market in the 1980s and 1990s in a way that Philips was not in the compact disc market?

Question 3: Explain the statment, “No matter how complex and unique products seem at the start, in the long run they are all toasters.”

We will follow up by the end of the week.