RSM392H1 Study Guide - Final Guide: Switching Barriers, Icloud, Closed System
Document Summary
Microsoft spent 1 billion in r&d but they recover costs in sales. Apple"s (cid:272)ost (cid:272)u(cid:396)(cid:448)e (cid:449)as diffe(cid:396)e(cid:374)t to dell"s (cid:894)at the ti(cid:373)e(cid:895), the(cid:455) had a lot (cid:373)o(cid:396)e (cid:272)osts the(cid:455) (cid:449)e(cid:396)e (cid:374)ot a(cid:271)le to overcome. Set up an ibm alliance ibm"s good at e(cid:374)te(cid:396)p(cid:396)ise. Bring back to a classic differentiation strategy. App sto(cid:396)e, icloud, (cid:272)o(cid:373)pute(cid:396) s(cid:455)ste(cid:373), diffi(cid:272)ult fo(cid:396) use(cid:396)s/(cid:272)usto(cid:373)e(cid:396)s to get (cid:862)out(cid:863) of the apple"s computer system switching to another brand had switching costs which were too high, high wtp, unconscious decision to buy/re-purchase an apple computer/laptop/phone. Who knows, may need to innovate or create something new to be able to grow their profits. Production was a very important part of the dram industry. They did not have the necessary investment in production. Similar: because there was litigation in both. They wanted to be part of the industry they thought they missed the boat for. They changed the structure of how this industry traditionally functioned.
