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A fascinating article here from John Naughton in the Observer which asks whether Microsoft has lost the key competitive edge that made it so successful for so long - innovation.
Microsoft has been a giant, almost dominant player in the electronics and software industry for as long as most of us can remember (certainly the Under 40s). But Naughton points to a terrific statistic which students might be able to use to illustrate how quickly market-leading positions can be overcome:
“Apple’s iPhone now brings in more revenue than all of Microsoft’s products”.
When we say all of Microsoft’s products, just think for a minute what that means; all sales of Windows, Office, Xbox etc”.
Naughton goes on to provide the data comparison;
In the quarter ended 31 March 2012, the iPhone had sales of $22.7bn. In the same period, Microsoft earned $17.4bn from everything it sold. So a single Apple product, which didn’t exist five years ago, had higher sales than everything Microsoft has to offer.
Some great analytical points are developed in the article and there are a wide range of relevant points which students who want to research the impact of technological change on markets might note down. Above all, it is the combined speed and scale of change which is so stunning.
I like the focus of the article too on the difficulty that larger, more bureaucratic firms face when they need to remain innovative. Some great points here on the role of culture in either stiffling or encouraging innovation and
I like this quote summarising the feedback of a recent survey of many ex-Microsoft employees;
“They told a dismal tale of opportunities missed, innovations squashed and talented people demotivated by the corporate ethos of a maturing organisation”
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Business Studies Revision / Exam Coaching Workshops Coming Up:
Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)
Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)
Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)
Post-Easter (BUSS1/BUSS2 Combined & BUSS4)
Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)
Try some of these superb starter activities for Business Studies:
- Anagram Countdown
- Beat the Teacher
- Budget Basket
- Memory Challenge
- Loop Cards
- I'm the Question
- Catchphrase - Say What You See!
- Consider All Possibilities (C.A.P)
- Teacher Talkabout
- Perfect Recall
- Pass the Buck
- What would you have invented?
- These are a few of my favourite things
- Set Your Students the 15 Word Challenge
- Topic Tennis
- What Why Depends - Developing Thinking Skills
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