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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…show more content…
b) In my opinion, ESRI face very severe challenges bring by the disruptive technologies. i. New innovation came out with bulk of relevant advanced technologies, and gradually absorbed considerable customers and occupied a big market. That what Google earth did and had already put a great threat to existing GIS. The new virtual globe has leaded the GIS industry into a new ear and changes the situation of GIS from professional use to mass entertainment. 4. Should ESRI explicitly target the new GIS customer (mainstream, nonprofessional, low-end)? If so, what organizational changes might this require? a) Personally, I think due to the great market potential, ESRI should target this group of internet users as further customer. The internet users among the world increase sharply as the rapid popularity of PC and internet, thus, the great potential of the mass market can not been ignored, otherwise, the market share of professional software will be reduced as the development of competitors. b) Organization Changes. The company’s value network, business model and particularly the organization structure need to change to adapt to the new market. ESRI organization structure need to be more decentralized, with fluid job responsibilities and extensive lateral communication processes. Members
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