Effects of the Rise of Mobile Computing on Best Buy

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1








Effects of the Rise of Mobile Computing
on
Best Buy




MGMT 463

Professor Greenstein


March 5
, 2012






Katherine Hushek

Clare Toledo

Pamela Walton
2


Executive Summary

T
his paper gives a number of recommendations to Best Buy executives to adapt
their business
model to th
e change in consumer preferences as consumers move from purchasing personal computers
to mobile devices
. First, it provides an

introduction to personal computers, mobile devices, and mobile
internet connections.
Then, it considers
market trends in the computing industry
that reveal

a rapid shift
away from personal computers to mobile devices in the consumer market. This change in technology
results in a number of potential winners and losers in the market as the v
alue add of firms changes
drastically.
Finally, it provides a

number

of recommendations

to Best Buy executives to adapt their
business with the changing technology.

Audience



The goal of the paper is to provide Best Buy executives with an a
nalysis of

the

changing personal
computer

and

mobile computing industry

in order to p
rovide concrete recommendations for future
success.

Introduction


Best Buy is a

leader

in
the
consumer electronics industry
,
1

and to maintain that position
Best
Buy
must

stay ahead of technological changes in the market that impact computing.

Advances in
technology have le
d to the creation of devices that are smaller, lighter, and more mobile.
2

Consumers
are purchasing mobile devices for their computing needs

at increasin
g rates
. Mobile devices have a
different value structure than traditional personal computers
,
and this impacts Best Buy

directly. An
analysis of the changing market will clarify what steps Best Buy can take to capture the most value from
this changing market.




3


Industry Overview

Personal Computers (PC
s)

The PC is
a small
computer designed for an individual user.
The

PC refer
s

to all desktop, laptop,
and n
et
book computers

(F
igure 1)
. PC
s first app
eared in the market in the 1970
s. Today they range in
price anywhere from a few hundred doll
ars to thousands of dollars. PC
s are used by

both businesses and
individual
consu
mers to access the int
ernet, word processing and

spreadsheet software
,

and various
game applications.
3

PC
s are comprised of a proc
essor, hardware inputs and

outputs, memory, storage and
software.
4

Figures 2 and 3 provide definitions for each PC component and a diagram to show the
interaction between the different components.
The v
arious
parts required for a

PC

are brought together
by Original Equipment Manufacturers (OEMs) to be distributed to the
market under the brand name of
the OEM.
5

OEM
s with the largest market share in 2011 were Dell, HP/Compaq, Apple, Toshiba,
Lenovo/IBM, and Acer.
6

OEMs
sell

PC
s to consumers through a variety of channels including

big box
retailers,
OEM

retail stores, online

distributers, manufacturer websites,
and small computer retailers.

Mobile Devices
-

Tablets
/Smart

phones


Mobile d
evices are small, light, portable computing devices meant f
or use in any location.
Mobile d
evices include all smart phones and tablets

(
F
igure
4
)
. Mobile computing devices entered the
market in
1993 with the first version of personal digital assistants (PDAs). However, mobile computing
did not gain mass market popularity until the incorporation of wireless internet servi
ce in devices in the

early 2000
s.
7

The
cost of mobile devices range
s

in the low to high hundreds of dollars, and requires

monthly subscription fees for access to the internet.
8


Common features of

mobile device
s

include color flat
-
panel
touch screens
, software, expansion
slots for a variety of external devices, and
embedded modems for
internet access.
9


A valued

feature by
consumers

in

mobile devices is access to

the

internet through

mobile broadband

or
a wireless
4


connection
.
Mobile devices do

not require the memory and stora
g
e

PC
s do

because the
y

rely on

internet access to store information o
n servers in a remote location, which is often referred to as “
the
cloud
.

10

An important aspect of the mobi
le device is the user interface/
software
platform
.

Unlike PCs,
OEM
s are not the most important brand to
consumers

of mobile devices
. Consumers are more focused
on the operating system of the device
, which determine
s

the user interface and available applications
.

Apple
’s iOS and

Google’s Android
are the largest players in
operating system
market.
11


Mobile
devices can be purchas
ed from the same location as PC
s in addition to wireless carrier
stores and websites.

Figure 5

illustrates

the Business to Business sales model in the mobile device
industry. Consumers rarely purchase directly from OEMs and generally buy product
s

through a carrier
owned retail

store or through a nati
onal retailer or agent.
Consumers do not purchase through a
n OEM
due to the pricing structure in the channel. Mobile devices are heavily subsidized by the carrier in order
lock customers into a contrac
t with attractive device prices.
12

Mobile Internet Connections


There is
currently
no single wireless standar
d or
type of wireless service
.

The two most
relevant

types of service
for mobile devices
are

subscription based

mobile broadband and Wi
-
Fi
. Mobile
broadband uses wireless signals to broadcast high speed internet everywhere. Cellular companies, such
as AT&T Mobi
lity, Verizon Wireless and Sprint Nextel, provide mobile broadband for access from cellular
phones and tablets.

13


Despite the lack of industry standards, mobile broadband technologies generally
fall into one of two categories: 3G (third generation cell
networks) or 4G
/LTE

(fourth generation cell
networks
/long term evolution
).

To access mobile broadband networks customers pay cellular companies
a monthly fee.

Wi
-
F
i, on the other hand, allows
users to access the internet from a specific access point. Like

mobile broadband, users can connect to the internet without the use of cable
s or connections. The term
“Wi
-
F
i” describes “a type of wireless local area network (LAN) protocol based on the 802.11 IEEE
5


network standard.”
14

Wi
-
F
i access is often provided to
smart

phone and tablet users at mobile
“hotspots” in cafes, libraries and hotels

free of charge
.


Many consumers pay monthly fee
s

to
telecommunications providers

(such as Comcast)

to
have access to Wi
-
Fi through a home connection.


Market
T
rends

and Techn
ology Adoption

Consumers

are shifting their preferences

from traditional
PC

computing to mobile computing.
In
2011 more smart phones were shipped than PCs for the first time in history.
15

The adoption of bo
th
smart phones and tablets has

created a shift in the market
that

will significantly impact the share of
wallet consumers devote to traditional
PCs

and peripherals.
16

As consumers find
more

mobile products

to meet their computing needs
,

new purchases and replacements of older computers

will increasingly
consist

of mobile devices.

Consumers are more mobile than ever, using smart phones to stay connected while on the go.
With nearly 160M mobile phone accounts in the United States, approximately 68M users own smart
phones.
17


The
current
s
mart phone penetration

within post paid accounts

and

the rapid rate

with which
new models are being
released suggest

that the adoption cycle is currently in the steep part of the S
-
cu
rve. The speed of adoption in cell

phones

in general

has been one of the fastest in recent technology,
as evidenced
by Figure
6
. S
mart phones already represent 38% of the

post paid

cell phone market in the
US, which indicates that the technology is moving into the hands of the early majority

(Figure 7
)
. In

Geoffrey Moore’s terms, smart phones have “crossed the chasm” and are being adopted by the early
majority at a pace that will
put
them in the late majority’s hands

within eighteen months or less (based
on the earlier part of the S
-
curve)
.
18


The need for t
raditional computing
,

however
,

is not obsolete. Content creation is still primarily
conducted on PCs due to the ease of entry (keyboards, mice, etc
). Content consumption, however,

is
increasingly moving from traditional computing hardware to mobile hardw
are
like

tablets and
smart
phones
.
19

Tablets are not currently being used as widely as smart phones, but are positioned to hit the
6


vertical of the S
-
curve and cross the chasm to the early majority within the next year.

The increase of
tablets

on the market and available wireless coverage will help speed the adoption and diffusion
process.

The speed with

which vendors are coming to market with new devices is creating challenges for
the Best Buy consumer. Con
sumers are not
aware of when product
s become obsolete, and therefore
may wait because they feel the “next best thing” could be right around the corner.
20

The “Buy Back”
program aims to alleviate this

techno stress,


but has
not
been linked to a specific increase in mobile
purchases. In addi
tion, this creates challenges from a company perspective, as Best Buy is tasked with
training both their blueshirts

(sales associates)

and

consumers on new products
while carrying

appropriate levels of inventory to meet these needs.


Impact on the
Industry


Potential Losers

There are several players in the value chain who stand to lose substantial revenues as the shift from
PCs

to
mobile devices quickens. OEMs
and retailers will likely all see a shift in the way they do business,
an
d those who do
not react quickly

stand to lose the most as the adoption cycle gains steam.

As OEMs
struggle to keep up with the pace of change, the high fixed costs of invested capital expense will cut
deeply into any margins OEMs may have enjoyed. Furthermore, because

they will be forced to compete
on a very short product development cycle, large bets will be made on technologies that may
or may not
be viable in the

near term.

Already the difficulty for brands to switch from one type of mobile product to another has
been
demonstrated with a few extremely public failures. For instance, the HP Touchpad tablet debuted at a
price tag of $499 (16 GB) and $599 (32 GB)
21

in early July of 2011, and seven weeks later, as part of a
company
-
wide reorganization, HP announced that

it was discontinuing production of the Touchpad, and
7


sold the remainder of its inventory at extremely discounted prices ($99 for the 16 GB and $149 for the
32 GB)
.
22

Although the Touchpad seems like a side note in HP’s struggle to settle on strategic dire
ction
in mid
-
2011, this failed product not only cost HP money in terms of loss per tablet, the failure may have
long term repercussions for the brand as it tries to navigate the computing market moving forward.

Dell also had a failed move into the mobile

market with the Dell Streak. The Dell

Streak was much
smaller than

Apple’s

iPad, with a 5
-
inch screen, but much larger than a smart phone. Furthermore, the
Streak boasted phone
-
like qualities, as it was available

for purchase

through wireless carriers a
t a
subsidized initial price of $249, and it could make calls and connect to the internet over the 3G
network
.
23

The Dell Streak may have been a little

too

early to market with a product that needed to be
sold in conjunction with a wireless plan.
Consumers didn’t seem to be
quite ready for the Dell Streak,
and it attempted to straddle the space between mobile phones and tablets, which was a very difficult
market position to maintain due to the different needs of the consumers in each segment. Dell

pulled
the plug on the Streak in December of 2011

after just eleven months on the market
.
24
,
25

As illustrated by the failed products above, inventory holding costs
can
become a grave concern for
both manufacturers and retailers as the move to mobile continu
es.
S
ell
ing

remaining

(or obsolete)

inventory at a loss is not an ideal situation for the OEM or the retailer, but neithe
r is stocking out due to
unanticipated
demand. Because hold
ing costs can pile up quickly
, solid sal
es forecasting and just in time

(J
IT)
inventory
terms

with key manufacturers could potentially provide a much needed margin boost to
the savvy retailer.

Another

repercussion of failed brand extension
s
is the difficulty created in determining the correct
product mix

as seen with HP and Dell
. When

brands have product

failure
s
, consumers may begin to
think differently about brands they have always purchased. This change in tastes makes it much more
difficult to know which brands to count on and which brands to be wary of.
P
roducts like the
Dell Streak
are not easily categorized in existing product mixes, pointing to a change in the way consumers think
8


about technology and the way OEMs want to sell technology. These two changes lead to questions
regarding the number and type of products that

should be placed in any one section of a retail store and
may lead to the reorganization or many retail floor

spaces.

Potential Winners

During this industry transition

there have been a
myriad

of

companies struggling to navigat
e the
rapidly changing compu
ting market
,

yet

a few key players have been able to begin to set standards and
realize profits. The most obvious winner in the changing market is Apple.
Apple

has been able to
continually launch new products to a large audience, allowing them to set sta
ndards in a quickly
evolving market
. B
eginning with

its iTunes and iPod products early in the 2000s,
Apple became a market
leader
, a status that
later allowed them to debut the iPhone with unprecedented success in 2007, selling
one million units in its
first 17 days on the market
.
26

Alt
hough competing products in
smart phones have
allowed competitors to remain viable, Apple
leveraged

its wins with the iPod and iPhone into a key
move into tablets

with the iPad in 2010.
Apple
surprised

almost every market

analyst and competitor

in
2010

by selli
ng 14.8 million iPads during the product’s

first year on the market (the highest forecast by
any
analyst was 7 million units)
.
27

Apple is both a Best Buy
partner

and
a competitor.
Apple brings customers to Best Buy, a
nd is
one of their top selling brands
.
28

In addition to PCs and mobile computing devices,
several third
party
vendors support accessories and peripherals for their products

sold at Best Buy.

Apple’s strategy
,
however,

creates a number of difficulties for Be
st Buy.

Apple has

just

over

300 locations
,
29

which
compete directly with Best Buy.
I
n terms of product allocation
,

Apple
often
launches product
s

without
enough supply to meet initial customer demand

and does not share

its

product roadmap with Best Buy
.
Additionally,
Apple
has strict brand and pricing policies, leaving little flexibility for Best Buy

in
-
store
displays and promotions.
30

9


Other winners from the technology shift to mobile devices are t
echnology companies that are
getting into the content game
,

such as Amazon
.com

(Amazon)
. Conte
nt creation and hosting provide

additional revenue source
s

and

a source of lock
-
in for consumers. Amazon has been able to realize a
great deal
of

success with th
e Kindle Fire (launched in 2011)

due to the fact that the Kindle is supported
by Amazon’s content network. This second revenue stream allows Amazon to sell the Kindle at a much
lower price ($199) than the HP Touchpad, for example, which sold at $499 before its failure. The lower
price
of the Kindle Fire appeals to a much broader audience of consumers who “may not have thought
about buying a more expensive tablet,”
31

increasing Amazon’s install base and ability to sell content
through the Kindle Store
.
In a cost tear
-
down performed by Mo
torola, Amazon
’s

Kindle Fire was
estimated to have an average cost of $201.
32

The retail price point is $199


signaling that this is a loss
leader for Amazon and the value of the device is actually from the future content purchases.
See Figure
8

for an es
timated cost structure of the Amazon Fire for Best Buy.

Therefore, the company

follows the
“market share now, r
evenue later” strategy that has proven successful for companies like McAfee.
33

Amazon

s pricing strategy will signif
icantly grow their install
base as well as undercut pricing from
competitors, making it difficult for other companies to make inroads in the tablet market in the future
with any sort of comfortable margin.

Similarly to Apple, Amazon acts as both a customer and a competitor. Best
Buy is often cited by
critics as “
Amazon’s

showroom” as consumers visit Best Buy to touch, feel and learn about products


then ultimately end up purchasing product through Amazon
.com

due to better pricing.
34

In the event of
product allocation, Amazon
.com

will also prioritize
its

own channel before fulfilling partners such as Best
Buy.

Amazon
.com

does not have to support any sort of overhead for bricks and mortar stores

or
salespeople
, allowing it to compete on price in a very
aggressively

with nearly ever
y product carried in
any given traditional retailer.


10


W
ireless carriers
also
stand to make huge gains as more consumers purchase devices designed
to work via 3G or 4G wireless internet connections. For every iPad with 3G capabilities sold, there is a
wireless carrier that needs to provide a data plan for that device. Currently the iPad with 3G works with
only the AT&T or Verizon networks,
35

but all other wireless carriers support data plans for many other

mobile

devices. Wireless carriers have already

made large investments in infrastructure to support data
usage, and that will likely continue as demand increases
. Furthermore
, carriers have learned that
consumers are willing to pay for data services, with the average data plan in the US ranging from $
15 to
$45 a month depending on bandwidth usage.
36


The key similarity to Amazon
.com

and Apple that the
wireless carriers have is that they

have the ability to provide an

ongoing service to consumers after a
piece of hardware is purchased. This subscription

model seems to be the most viable source of
revenues
in mobile computing to date.


Like Apple and Amazon
.com
, wireless carriers

are both a source of revenue and competition for
Best Buy. Consumers can purchase the mobile computing devices from Best Buy s
tores or directly from
the wireless carriers. In the past, Best Buy has not been part of the subscription model revenue source,
but only provides the hardware

and recommendations regarding carriers
.


Recommendations
for Best Buy

Best Buy can proactively
address the evolving market, mitigat
e future risk, and allocate
investments to profitable categories.
In order for Best Buy to remain competitive, the company must
renegotiate vendor contracts, grow components of the HACCS

(
Hardware
,

Accessories
,

Connecti
ons
,

Content
, and

Services
)
model, and implement strategic tactical adjustments regarding retail operations.

As the mobile device market crosses the chasm from early adopters to the early majority and PCs are
coming to the tail end of adoption, Best Buy mu
st take action in the

near term
.


11


Renegotiation of Vendor Contracts

Be
ginning in FY13 (March 2012), Best Buy

needs to re
-
evaluate its key vendor relationships

to
ensure alignment with the future market. As stated in the FY11 Annual Report five suppliers


Apple,
Samsung, Son
y, Hewlett
-
Packard and Toshiba
-

represented

39% of total merchandise purchased. The
loss of or disruption in supply from any one o
f the
se major
partners would

hav
e a dramatic negative
impact on
revenue and earnings
.
37

Each of these suppliers is heavily invested in
PCs.

As this category
declines
,

the supplier must react with an equal uptick in mobile computing

devices

or they stand to los
e
value within Best Buy

and consequently have an
adverse affect
on

Best Buy financials
.
Best Buy should
not fe
el confident that current

top suppliers will be able to successfully make this transition in the short
term
, as evidenced by recent failures
from HP and Dell among others
.



Due to the rapidly changing market, Best Buy must manage their inventory more efficientl
y.
Best Buy cannot be in an at
-
risk scenario with significant dollars tied to excess or obsolete inventory.
The company must put th
e onus on vendor partners to bear inventory ris
ks and deliver produc
t

JIT

to
meet the needs of the Best Buy customer
. Outside of JIT terms
, Best Buy can negotiate EOL (end of life)
marketing support to ensure any clearance price management (CPM) activitie
s do not heavily degrade
margins. Inventory is a significant factor in the technology industry and Best Buy must pressure their
vendor partners to mitigate this risk.

Best Buy must
also
obtain revenue outside of the sale of hardware

by partnering with c
ontent
suppliers and wireless carriers in
new
ways.
Declining average selling prices (ASPs) and slimmer
hardware margins will continue to challenge Best Buys’ profitability. Service and content deals will help
offset this margin

loss and restore profitabi
lity
.

Growth of HACCS


As hardware ASPs continue to decline, Best Buy needs to capitalize on other complementary
consumer purchases.
Currently, Best Buy has over 25% share of the hardware industry, but less than
12


20% of complementary assets market share.
38

B
est Buy

must capture additional value through margin
rich accessory purchases, content and connections as described previously, and services like Geek Squad
or Black Tie Protection insurance.

Retail Operations


At a retail level, Best Buy must also make
strategic decisions in order to further reduce costs and
exploit their unique value proposition. In terms of cost reduction, Best Buy must look at inventory
management (JIT)
along with reducing floor space and real estate costs
. As categories continue to

converge, Best Buy is burdened with high real estate costs for square footage that is no longer necessary

for PCs
. The company must re
-
evaluate its physical
store locations to determine the optimal square
footage. Floor space must be reallocated to profi
tab
le categories

(mobile devices and peripherals)
, and
low growth/
low profit categories

(PCs)

should be

reduced

eliminated. This may have significa
nt impact
to the store format
, as traditional electronics may receive less attention on the retail floor as
growth
categories overtake square footage.

Best Buy must continue to

ensure it creates value with the highly trained and dedicated blueshirt
sales force. Best Buy, unlike other national retailers and online e
-
tailers, provides a physical show room
with trained and educated staff. The HR costs associated with staffing ove
r 1100 stores, especially
seasonal in nature, are costs that their online competitors do not bear. Best Buy must focus efforts on
employee retention

and training

so the investment in labor is not insignificant.


Conclusion


The consumer computing industry is moving away from PCs towards mobile computing devices.
This shift will fundamentally change which firms
add the most value

and th
erefore capture the most
profit
. Best Buy will need to make

a number of changes to its curre
nt operations to stay ahead of the
market shift and retain its position as one of America’s top electronics retailers.
39



13


Figure 1:
Personal

Computer
s





Figure 2:
Personal Computer Components



Processor

-

At the heart of every PC is the central processing unit, CPU for short. The CPU plugs
into a motherboard which has a lot of other chips and electronics on it. The CPU and other
components

work together to schedule, compute and control everything that happens in the
PC.



You've probably seen the 'Intel Inside' appearing in many computer sales ads. They are referring
to the Intel CPU which is often a Pentium or Celeron processor.




Input

-

devices

that allow you to direct the action of the PC. The keyboard and mouse enable
you to control the computer by giving it directions (input).




Output

-

devices that display or produce res
ults for you. The video display and

printer

are the
primary ones. The speakers beep, chime etc., to let you know an action is completed and they
also play your favorite MP3 files.




Memory

-

is temporary storage used by the CPU to store results of calculations or files brought
in from the hard drive. Memory is very fast and volatile which means it loses it's information
when power is removed. The memory cells are housed in Integrated Circuits
(ICs), or chips as
they are often called.




Storage

-

devices that retain information magnetically (Hard Disk Drive and Tapes) or optically
(CD and DVD). They are not as fast as memory but can store much more data. They do not lose
their information when po
wer is removed.




Software

-

these are instructions, also known as programs or code. Software is to the CPU, what
knowledge is to our human brains. The CPU and software work very closely together. Each one
by itself is useless. Only when they work properly
together can they direct and execute activities
in the PC in a productive way.


(Source:
http://www.computerhelpatoz.com/how
-
overview.html
)


Desktop PC

Laptop PC

Netbook PC

14



Figure 3
: Personal Computer Components

Diagram


(Source:
http://www.computerhelpatoz.com/how
-
overview.html
)



Figure 4
:
Mobile Computing Devices



iPad Tablet


Generic Tablet


Assortment of Smart Phones

15


Figure 5: Channel Flow
s (US Market)

A.

B2B Hardware Purchase Route



B.

B2C Purchase Route




(Source:
http://galenet.galegroup.com.libproxy.kentlaw.edu/servlet/BCRC
)





Indirects & National Retailers

Dealer Agents

BBY, Walmart, RadioShack, etc

Carrier / Operators

AT&T

Verizon

Sprint

T
-
Mobile

Original Equipment Manufacturs (OEMs)

Motorola Mobility

End Consumer

Carrier / Operators / Retailers / Indirect Agents

ex. AT&T / Verizon/ Sprint/ TMO etc.

ex. Best Buy, Walmart, Radio Shack, etc.

Original Equipment Manufacturer (OEMs)

ex. Motorola

ex. Samsung

16


Figure 6
:
US Technology Adoption
Curves



(Source:
http://www.blog.telecomfuturecentre.it/

and Motorola Mobility, Inc.
)


Figure 7:

Smart Phone Penetration in the US Market




(Source:
Forrester and Best Buy Analyst Day Presentation

2011)


17


Figure
8:

Amazon Kindle Cost Breakdown


(Source:
Amazon

Kindle Fire Cost Estimates November 2011 (conducted by Motorola
)
)



Figure
9:

Amazon Fire Pricing Program with Best Buy


Amazon Kindle Fire


Estimate


Amazon Cost (from tear
-
down report)


$ 201.00


Amazon Price to B
est Buy


$ 179.10


Best Buy

Retail Price Point


$ 199.00


Best Buy

Profits


$ 19.90


Amazon Profit


$ (21.90)


*Assumes 10% channel margin
to Best Buy (typical of tablet hardware margins)

** Excludes any back end program accruals Amazon may give BBY for advertising (typically 2
-
5% in the
category)


Inference: Amazon must recoup minimally ~$22 per user in order to break even on the sale of the

device.


(Source:
Best Buy Tablet Merchant feedback 2012
)



18


Works Cited




1

http://money.cnn.com/magazines/fortune/fortune_archive/2006/04/03/8373034/

2

http://www.itnewsafrica.com/2011/04/opinion
-
piece
-
mobile
-
computing
-
smaller
-
lighter
-
faster/

3

http://www.webopedia.com/TERM/P/personal_computer.html

4

http://www.computerhelpatoz.com/how
-
overview.html

5

http://searchitchannel.techtarget.com/definition/OEM

6

http://www.sacbee.com/2012/02/21/4278779/the
-
results
-
are
-
in
-
for
-
rescuecoms.html

7

"Handheld Computing Devices."
Encyclopedia of Emerging

Industries
, Online Edition. Gale, 2012.
Reproduced in Business and Company

Resource Center. Farmington Hills, Mich.:Gale Group. 2012.

http://galenet.galegroup.com.libproxy.kentlaw.edu/servlet/BCRC

8

www.bestbuy.com


9

"Handheld Computing Devices."
Encycloped
ia of Emerging

Industries
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http://galenet.galegroup.com.libproxy.kentlaw.edu/servlet/BCRC

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Fontevecchia,

Agustino

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“Apple

To

Dominate

Tablet

Market

Through

2015,

Google

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Forbes.com,

4/11/2011

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MGMT463 Professor Greenstein Winter 2012.

13

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Encyclopedia of

Emerging Industries
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and

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http://galenet.galegroup.com.libproxy.kentlaw.edu/servlet/BCRC

14

http://mobileoffice.about.com/od/glossary/g/wi
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fi.
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15

http://www.pcmag.com/article2/0,2817,2399846,00.asp

16
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17

Best Buy Analyst Day 2011, Mobile, Slide 3

18

Moore, Geoffrey.
Crossing the Chasm
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19

http://www.brafton.com/news/tablet
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smartphone
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content
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consumption
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20

Shapiro, Carl and Varian, Hal.
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Harvard Business School Press. 1998.

21

http://reviews.cnet.com/tablets/hp
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touchpad
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16gb/4505
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3126_7
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34499289.html#reviewPage1

22

http://www.tomshardware.com/news/webos
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touchpad
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palm
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firesale
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clearance,13401.html

23

http://reviews.cnet.com/dell
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streak
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review#reviewPage1

24
http://www.pcworld.com/businesscenter/article/245512/dell_streak_is_dead_lessons_for_other_tabl
ets.html

25
http://www.knowyourmobile.com/blog/753440/dell_streak_7_release_date_and_pricing_confirmed.
html

26

http://www.macrumors.com/2010/03/16/initial
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sales
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of
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original
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iphone
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droid
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and
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nexus
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one
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compared/

27

http://allthingsd.com/20110120/with
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ipad
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steve
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the
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street
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again/

28

BBY 2010 10K, page 9

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http://www.apple.com/retail/storelist/

30

http://money.cnn.com/2011/11/15/technology/kindle_fire_sales/index.htm

19







31

http://money
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32

Amazon Kindle Fire Cost Estimates November 2011 (conducted by Motorola)

33

“Strategy in Standards
-
Oriented Markets; Frameworks and Tool
-
kits” Class Slides. Kellogg School of
Management. MGMT463 Professor Greenstein Winter 2012.

34

http://video.cnbc.com/gallery/?video
=3000062073

35

http://www.apple.com/ipad/3g/

36

http://www.pcworld.com/article/228256/verizon_say_so_long_to_unlimited_data.html

37

BBY 2010 10K, page 9

38

Forrester and Best Buy Analyst Day Presentation 2011

39

http
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