Sunday, January 31, 2010
I PAD
Avoiding the "Commodity Trap": How Apple Stays Ahead of the Competition
Posted Jan 29, 2010 10:14am EST by Peter Gorenstein
Related: AAPL, VGT, QQQQ, RIMM, MSFT, T
If history is any guide, Apple's dominance may soon hit a snag. CEO Steve Jobs recently announced the company was poised to rake in $50 billion in annual revenues, a milestone that is more often an obstacle not a launching pad. IBM, Dell, Hewlett-Packard have all stumbled after hitting this impressive mark, as Dow Jones reports.
Richard D'Aveni, professor of strategic management at Dartmouth's Tuck School, thinks it won't be an issue for almighty Apple because they are keenly aware of the pitfalls that lay ahead.
Avoiding the "commodity trap."
In what's probably the most commoditized industry in the world – technology – Apple continues to avoid what D'Aveni calls the commodity trap and maintains brand equity more than 30 years after the company's founding.
How do they do it?
D'Aveni, author of Beating the Commodity Trap, says Apple has not fallen victim to two of the most common traps: proliferation and escalation.
Proliferation, as he defines it, is when rival businesses offer discounted products with additions that challenge and fragment the dominance of a brand.
Apple avoids this trap "by revolutionizing a market when it gets there," he says. Citing the iPhone's effect on the smartphone market.
Escalation happens when lower-cost products are rolled out with snazzy new perks, offering consumers greater benefits for lower prices…and inspiring an endless volley of one-upmanship.
Apple stays ahead by "always leading the competitors with the next generation." D'Aveni recognizes "just as they reach the precipices of price competition, it morphs." Hence, the iPod becomes the iPhone and iTouch, which then lead to the creation of the iPad.
D'Aveni believes innovation is so ingrained in Apple's culture he's confident they can succeed with or without Steve Jobs at the helm.
Friday, January 1, 2010
Gilbert Arenas ups strap on team mate?
WASHINGTON (AP)—The investigation of Gilbert Arenas(notes) and the guns he brought to the Verizon Center took a much more serious turn on Friday amid a report that he and Washington Wizards teammate Javaris Crittenton(notes) allegedly drew on each other during a locker-room argument over a gambling debt.
Arenas responded with a flurry of messages on Twitter, at times making light of the news but also making one tweet that read somewhat like a denial: “I understand this is serious..but if u ever met me you know i dont do serious things im a goof ball this story today dont sound goofy to me.”
Arenas later tweeted he couldn’t talk about the report the way he wanted to. He did not respond to a text message left by The Associated Press. A message left for Crittenton’s agent also was not returned. The NBA and the Wizards would only confirm that an investigation is taking place—and it’s being led by law enforcement, not the league.
“There is an active investigation by D.C. law enforcement authorities, which we are monitoring closely,” NBA spokesman Tim Frank said in a statement. “We are not taking any independent action at this time.”
D.C. police said they are assisting the U.S. Attorney’s Office in the matter.
The Wizards and Arenas both have acknowledged that Arenas kept guns in his locker. The team has said the firearms were unloaded and kept in a locked container with no ammunition. Arenas has said he took his guns to the Verizon Center because he didn’t want them in his house after the birth of his latest child. He said he later handed them over to team security to give to police.
“They just want to know where I got them from,” Arenas said on Tuesday. “They want to make sure they’re not dirty guns.”
But Yahoo! Sports and the New York Post, both citing unidentified sources, reported the investigation now involves Crittenton. The Post reported Crittenton became angry at Arenas for refusing to make good on a gambling debt. That prompted Arenas to draw on Crittenton, who then reached for a gun, league security sources told the Post.
The nation’s capital has some of the most strict gun laws in the nation. The NBA’s collective bargaining agreement allows for players to legally possess firearms, but prohibits them at league facilities or when traveling on league business.
Pending the outcome of the investigation, Arenas and Crittenton could face fines or suspensions from the NBA.
Arenas, in the second season of a six-year, $111 million contract, was suspended for Washington’s season opener in 2004 because he failed to maintain proper registration of a handgun while living in California in 2003.
Arenas didn’t make the reports sound serious with his first tweet on the matter on Friday: “i wake up this morning and seen i was the new JOHN WAYNE. … Media is too funny.”
Arenas, once known for his must-read blog, had vowed not to even use Twitter until he had one million followers. He broke his silence on New Year’s Eve because he said it was taking too long to reach the goal. He had about 11,000 followers.
On Friday, he tweeted often, referencing the gun investigation while mixing in references to other topics.
“if ur not laughing i dont think u should follow me becuz im never serious and i will never not say anything dumb and silly,” he wrote, before finally taking a break.
Arenas is averaging 22.7 points this season as he returns from knee surgeries that limited to 15 games over the previous two seasons. Crittenton has an injured left foot and hasn’t played this season.
Arenas responded with a flurry of messages on Twitter, at times making light of the news but also making one tweet that read somewhat like a denial: “I understand this is serious..but if u ever met me you know i dont do serious things im a goof ball this story today dont sound goofy to me.”
Arenas later tweeted he couldn’t talk about the report the way he wanted to. He did not respond to a text message left by The Associated Press. A message left for Crittenton’s agent also was not returned. The NBA and the Wizards would only confirm that an investigation is taking place—and it’s being led by law enforcement, not the league.
“There is an active investigation by D.C. law enforcement authorities, which we are monitoring closely,” NBA spokesman Tim Frank said in a statement. “We are not taking any independent action at this time.”
D.C. police said they are assisting the U.S. Attorney’s Office in the matter.
The Wizards and Arenas both have acknowledged that Arenas kept guns in his locker. The team has said the firearms were unloaded and kept in a locked container with no ammunition. Arenas has said he took his guns to the Verizon Center because he didn’t want them in his house after the birth of his latest child. He said he later handed them over to team security to give to police.
“They just want to know where I got them from,” Arenas said on Tuesday. “They want to make sure they’re not dirty guns.”
But Yahoo! Sports and the New York Post, both citing unidentified sources, reported the investigation now involves Crittenton. The Post reported Crittenton became angry at Arenas for refusing to make good on a gambling debt. That prompted Arenas to draw on Crittenton, who then reached for a gun, league security sources told the Post.
The nation’s capital has some of the most strict gun laws in the nation. The NBA’s collective bargaining agreement allows for players to legally possess firearms, but prohibits them at league facilities or when traveling on league business.
Pending the outcome of the investigation, Arenas and Crittenton could face fines or suspensions from the NBA.
Arenas, in the second season of a six-year, $111 million contract, was suspended for Washington’s season opener in 2004 because he failed to maintain proper registration of a handgun while living in California in 2003.
Arenas didn’t make the reports sound serious with his first tweet on the matter on Friday: “i wake up this morning and seen i was the new JOHN WAYNE. … Media is too funny.”
Arenas, once known for his must-read blog, had vowed not to even use Twitter until he had one million followers. He broke his silence on New Year’s Eve because he said it was taking too long to reach the goal. He had about 11,000 followers.
On Friday, he tweeted often, referencing the gun investigation while mixing in references to other topics.
“if ur not laughing i dont think u should follow me becuz im never serious and i will never not say anything dumb and silly,” he wrote, before finally taking a break.
Arenas is averaging 22.7 points this season as he returns from knee surgeries that limited to 15 games over the previous two seasons. Crittenton has an injured left foot and hasn’t played this season.
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