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Scientific-Atlanta, Inc.

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Scientific-Atlantia (S-A), a leading manufacturer of cable TV equipment, is confronting strategic challenges in mid-2004. For decades, cable operators have faced high switching costs that have locked them into exclusive supply relationships with either S-A or its somewhat larger rival, Motorola. S-A has developed technology that substantially reduces switching costs, and it is positioned to capture market share because it has an 18-month lead over Motorola in developing cable set-top boxes that incorporate digital video recorders (DVRs). Cable operators are eager to offer DVRs to stem subscriber losses to satellite TV. The case asks whether S-A should aggressively pursue opportunities to overlay its set-tops in cable systems that previously employed only Motorola gear. If so, to what extent should S-A subsidize cable operators' remaining switching costs? Are there risks in introducing more competition into what had previously been a stable duopoly? Also explores S-A's strategic options for dealing with a transition to all-digital television technology and consumers' growing demand for solutions for managing their digital media files (photos, music, etc.). Asks whether S-A should continue to offer an integrated, proprietary, end-to-end transmission solution or, instead, embrace a more open "ecosystem," relying to a greater extent on third-party software and hardware providers and offering solution elements on an unbundled basis. A rewritten version of an earlier case.

【書誌情報】

ページ数:21ページ

サイズ:A4

商品番号:HBSP-804191

発行日:2004/6/9

登録日:2011/7/29

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