IT and Strategy Part 2 Adobe Case IT and Strategy Part 2 Adobe Case Discussion Points and IT Strategy Discussion Points and IT Strategy Management Management BMGT301 BMGT301 Professor Catherine Anderson Professor Catherine Anderson Administrative Administrative Canceling office hours for today Quiz is 9 22 for TR and 9 23 for MW Format is multiple choice 10 questions Review on Thursday TR sections and Monday MW section Adobe Systems Incorporated Adobe Systems Incorporated Case is set back in 2000 What type of business is Adobe in Publishing Does Adobe market durable goods or information goods Software digital goods Postcript Postcript What was Postcript Interface between an application and an output device How did Adobe establish Postscript as a de facto standard was open free Wide universal compatibility with Postscript printers Entered into alliances with big companies printers etc How did Adobe make money from Postscript Charged for use of the interpreter royalties Charged for fonts Suite of products for sale that used Postscript PDF as an eBook format PDF as an eBook format What does PDF allow users to do Retains formatting of original doc with print capability What form of price discrimination did Adobe use Second degree price discrimination versions different functionality bundled to meet varying needs of consumers Who were the early adopters of eBooks in 2000 Professional interested in reference materials textbooks PDF as an eBook Format cont d PDF as an eBook Format cont d What drove uncertainty in the eBook market Quality of display Concerns over shifts in responsibility publisher s author s rights Selection limited Devices themselves were really expensive Concern over standard and where it may end up Comparing the 2 firms Adobe Comparing the 2 firms Adobe Arguments for Adobe being in a stronger position Groups 1 through 5 PDF already more universal Greater historical ties to publishers High number of books already in PDF format InDesign product Acquired Glassbook reader device which had good display features Gained edge in Digital Rights Management Comparing the 2 firms Microsoft Comparing the 2 firms Microsoft Arguments for Microsoft being in a stronger position Groups 6 and up Greater resources e g advertising etc Could bundle Reader with Office Product Greater control of PC side with Operating SW Gained exclusive rights to content Who is better positioned to control the Who is better positioned to control the standard standard 1 Microsoft 2 Adobe 60 40 M icroso ft Adobe What are Adobe s options going What are Adobe s options going forward forward Make PDF Creation Free Take a niche approach and focus primarily on Professionals Print on Demand What is your recommendation Update on the eBook Market Update on the eBook Market Amazon s Kindle 2007 sold out in 5 months and stayed sold out until mid 2008 2009 introduced Kindle 2 and Kindle DX Google to sell eBooks June 2009 Partnered with Sony Google s eBook Business Will Create Standards War PC World Sony s Reader Announced use of eBook standard in August 2009 Sony s Decision
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