SAI 440 Week 3 Case Study A Telecom Giant Emerges from Government Ownership

Question 1.

Harvard Professor Michael Porter states: “Domestic rivalry not only creates pressures to innovate in ways that upgrade the competitive advantages of a nation’s firms. The presence of domestic rivals nullifies the types of advantage that come simply from being in the nation, such as factor cost, access to or preference in the home market, a local supplier base, and cost of importing that must be born by foreign firms.” Discuss why Porter’s comments are so important in an era of rising global competition.

Question 2.

Consider a semiconductor firm that must invest more then $1 billion to produce commodity products that sell for declining prices. Analyze the associated risk factors. What actions can be taken to minimize these risk?

Question 3.

Many large computer manufacturers produce computer software for their products; however, the growth in independent software developers has been extraordinary. Discuss the reasons for this, noting in particular the reasons for Microsoft’s phenomenal rise to prominence.

Question 4.

Discuss Deutsche Telekom’s rise to prominence since privatization. In your opinion, what are the company’s major successes, and what, if anything, could it have done better?

Question 5.

Industry dynamics result from the balance among competition, technology, consumers, and regulation. Given this, what do you believe are some of the consequences of over-regulation and under-regulation?