ESRI CASE STUDY
1. Of the three types of uncertainty that characterize high-tech markets, which type is ESRI experiencing most acutely? Elaborate and provide strategic implications for ESRI. a) In this case, I think the ESRI suffer the most in the technology uncertainty. i. Concerns over obsolescence. Technology is evolved extremely rapidly with the relevant elements develop simultaneously and interactively. Microsoft and Google integrate PC, Broadband Internet connection and powerful search engines together to offer virtual globes service which challenge the traditional industry model of market segmentation. As the world’s leading vendor of DIS system software, ESPI faced severe challenge of new innovation and products. The key of high-tech companies’ survival is keeping innovation and advancing own technology before its obsolescence. ii. Initially, the core competitiveness of ESRI software products is its unique geographic database designed for target customers, which provide diverse information to support various customers’ work. As the new high-tech product (Google earth) came out, the classic database had been challenged by new information collection model which construct by mass internet users upload and share information. The uncertainty of technology evolution brings risk to further development of existing technology. b) Currently, the new product may not be professional and target-oriented enough to compete with ESRI’s GIS professional product, but from the strategic angle, new innovation which has been regarded as disruptive technology/product has great potential to compete with existing ones, in addition, that’s the development trend of GIS system and will build new industry standard after widely-dispensed.. ESRI should handle it seriously, interact with the development trend and enhance own strength as well as integrate new advanced technology with own products.
2. What are the characteristics of the newest competitors that have allowed them to gain traction I n the GIS industry? a) There are several aspects enhance the new products’ competitiveness. i. Strong combination with advanced technology and service. Rather than traditional GIS system provided by ESRI, new product, such as Google earth, is based on innovation of PC, world-wide internet and strong search engine, therefore, Google earth combine new advanced technologies together to create a modern software . ii. Ample and various information. Google earth allow users interact and share own information onto the software, which considered as UCC (user-contributed content). Therefore, these user-driven efforts serve as a model for the GIS community to publish and share more sophisticated and useful services in this dynamic, new online environment, as a result, this architecture for participation abstracted a lot of users. iii. Correct market segmentation. These new products are aimed on the mass market, which refer to the ordinary internet users who need some information in geography and direction. Initially, this segmentation had not been regarded as target customers, while as the popularity of PC and internet, large demand occurred in this segment. These new products just enter the blank market and fulfilled the need, then get a rapid increase in customer amount. iv. New business model and
3. To what extend does ESRI face “disruption”, in the classic sense of the word? a) Disruptive technology/innovation describe innovations that improve a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. Disruptive technologies are particularly threatening to the leaders of an existing market, because they are competition coming from an unexpected direction. A disruptive technology can come to dominate an existing market by either filling a role in a new market that the older technology could not fill (as cheaper, lower...
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