1. When two incompatible technologies compete in the marketplace, one usually becomes the dominant standard and the other fades away. Explain two processes that cause the emergence of such "winner-take-all" markets. If you were the inventor of a new social networking website called FriendSpace, what would be an approach you would take to generate each of these processes and compete against the market leader, Facebook?
2. Sticksoft Corp., a hypothetical cement manufacturer wants to diversify into the hotels business because it has available cash reserves and its managers want to hedge their risks against a downturn in the cement market. Evaluate if Sticksoft has a compelling reason to enter the hotels industry. Also identify a better business for Sticksoft to diversify into and discuss why. If Sticksoft chooses not to diversify, how best can it help shareholders manage their risks of investing in the cement business?
3. Pfizer, the leading pharmaceutical company, recognizes synergies with a private biotechnology firm, Ambit Biosciences, based in San Diego. Pfizer is deciding between trying to acquire Ambit and developing a collaborative relationship with it. What is one major problem each that acquisitions and alliances typically run into? Assuming that Ambit is a willing acquisition target and alliance partner, what are two factors that Pfizer should consider while choosing whether to acquire Ambit or collaborate with it?
4. The telecommunications equipment company Lucent pioneered an approach where employee ideas for ventures were located and supported in an autonomous unit called Lucent Ventures. Lucent's management believed that Lucent Ventures played an important role in allowing Lucent to become ambidextrous. What does ambidexterity mean in the organizational context and why is it an important attribute to possess? How does a unit like Lucent Ventures contribute to organizational ambidexterity?
5. Digital photography is widely recognized as a typical example of a disruptive technology. What aspects of the evolution of digital photography made it disruptive for film photography? Discuss two reasons why incumbent firm using established technologies (e.g., Kodak in film photography) often ignore disruptive technologies till it is too late.