Summary of Information Rules by Shapiro and Varian

Which of the following factor(s) is (are) likely to be significant for a firm with a successful cost leadership strategy?

Operational excellence. Many industry players are facing strong competitive pressure, so cost leadership is another key to success.

For a long time we have strived to protect what we have made from the hands of those who steal. Nowadays we have a huge problem with infringement and that is due

Intellectual property is any creation, owned by one or multiple owners, that is used commercially. The designs, inventions or any work that is original can be protected by IP rights. Rights are established through application and prevent any use without permission. The only way to use this work, when not owned, would be to buy the rights. While rights are owned there is an opportunity to make advancements with limited opposition. This is due to the competition not being able to act since the idea is not theirs.

6. What lessons can we draw from this case about the challenges of pursuing a cost leadership strategy?

2/13/2017: Broad cost leader strategy is chosen by the team. The strategy’s impact on marketing to keep low costs and maintaining competitive pricing were discussed.

Change in one of the market risk may result in changes in another, which can affect how Walmart price the product for consumers and it also affect the value of the cost leadership initiatives. By using cost leadership to leverage operating expenses, increasing productivity and sourcing goods globally at low, low cost will maximize returns on capital invested. Walmart execute a tight financial expense control and a strong inventory management along with cost leadership and financial discipline will gives Walmart more profitable returns (Walmart 2010 annual report).

All companies desire to dominate any given market without being outfought or outwitted by rivals. However, the implications of

Originality is a vital concept in today’s aggressive business world. The most successful companies in the world hold there distinguished status because they either introduced a new product or service to the world or they transformed an existing idea into something extraordinary. Once a business reveals its creations, competitors have two main questions; how did they do it? And, how can I create something better? Misappropriation of trade secrets is a serious crime because, it robs the market of originality and therefore, the consumers of product and service diversity. The case of Whipps, Inc. v. Ross Valve Manufacturing Company, Inc., illustrates this crime against the diversity of the financial marketplace. The court’s ruling in the case was acceptable because it involved two questions of law that

There is such a legal concept as "intellectual property". Intellectual property is defined as the creation of any intellectual innovation by an individual such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. The law provides him exclusive rights to this innovation and is strictly against theft or plagiarism in any way. Innovators can safeguard their property by one or more of the following: copyright, trademarks, patents, industrial design rights and in some jurisdictions trade secrets.. Copyrights, patents, and trade secrets are each authored by different Offices. Each is based on the Laws of Commerce. (LII. Intellectual property). Cultural attitudes, in fact, esteem words and knowledge above that of certain other property, since knowledge is something that cannot be as easily duplicated as, for instance, an article of common furniture can. To illustrate the veneration that contemporary society accords intellectual invention, software is more expensive and valuable than hardware sink the

Differentiation can be achieved in a variety of ways: unusual features, responsive customer service, rapid product innovations, technological leadership, perceived prestige and status, appeal to different tastes, and engineering design and performance. Methods of controlling costs, however, may be limited. The ability to price differentiated products competitively will be important for reducing upward pressure on customer prices so that they do not exceed the level customers are willing to

There must be a balance between the developer of the intellectual property and the interest of the public. Intellectual property is already a big business among companies. Expanding the monopolies has the effect of allowing companies to negotiate and cross-licensing technology. Microsoft, as recently reported on the Wall Street Journal, is looking to expand the licensing of its technologies, after successfully licensing some video decoders to open source groups.

Keep constant tabs on how your company is using the intellectual property you acquire. As your company grows, changes or modifies the product, you will need to be sure that you are constantly monitoring the use of the intellectual property. You do not want to inadvertently violate the agreement. You may need to update your agreement with the owner of the intellectual property to keep your company in compliance with it.

To comply with the cost-leader competitive strategy of Digby, we lower the MTBF, improve automation and enlarge economies of scale to reduce material and labour variable costs. By that, we are able to entitle a higher contribution margin. Only focusing on costs, we miss the nature of competitive strategy. Porter (1997) suggests cost leadership competitive strategy allows sufficient price flexibility to those price-sensitive segments- Traditional and Low End. It is acknowledged that price and demand has a negative correlation (Marshall 1920). A drop in price of a product lower than its competitors can boost customer demand for the product. However in practice, we fail to lower our price and this Though we did generate large profit from these high contribution margin segments, Digby on one side violates the nature of cost leadership competitive strategy, and on the other side fails to maintain our competitive advantages to actually dominate the market. This is the reason for our loss of market share in Traditional segment in round 6. Compared to price variation in Traditional in 2020, nearly all businesses set a similar price in 2021, and we lose 12 % of market share (Digby 2020-2021). If we realise the strategy violation and arrange the price competitively early, we may award larger market share to dominate the market and gain the monopoly power.

Firstly, with laws to protect intellectual properties, it prevent and stop other companies from commercially using the protected intellectual properties in the marketplace, allowing the owner company to control the usage of their original