Eric Clemons - Faculty Research in Knowledge@Wharton

Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites

Wed, 10 Nov 2010 14:15:08 EST

Groupon -- from the words "group" and "coupon" -- negotiates deeply discounted deals with businesses and alerts its legion of e-mail subscribers to the offer. Since its founding in 2008, Groupon has amassed 25 million subscribers in 29 countries, and a host of competing sites have crowded the market hoping to tap into the potential of "social" commerce. But are group buying sites just a passing fancy? And what should they do to stand out from the pack and achieve long-term sustainability?

Financial Services on Aisle Nine: Wal-Mart Gives Banks a Run for Their Money

Wed, 01 Sep 2010 16:07:02 EST

Despite being pilloried by the public lately, a banker's lot can't be all that bad. At least, that's what Wal-Mart executives must be thinking. Over recent months, there has been a flurry of announcements from the world's largest retailer about the expanding array of banking products sold at its U.S. stores. Company officials insist that their main aim is to reach the "unbanked" and "underbanked" with the type of low-cost services that cemented Wal-Mart's reputation as a retail giant. So do traditional retail banks on Main Street USA have reason to worry?

Will Tablets Close the Book on e-Readers?

Wed, 07 Jul 2010 14:14:17 EST

The price war is on in the e-reader market as Amazon, Barnes & Noble and others duel to increase market share for their devices. However, experts at Wharton say the larger question for these companies is whether there's much of a future for e-readers -- which are designed mostly for reading books, newspapers and magazines -- in a consumer world that is becoming more and more enamored of tablets that can do it all.

To Boycott or Not: The Consequences of a Protest

Wed, 09 Jun 2010 16:48:25 EST

The call for a boycott of BP in the wake of its ongoing disastrous oil spill in the Gulf of Mexico is hardly surprising. The boycott, which in BP's case was proposed by consumer group Public Citizen, is a tactic that has been used for centuries by consumers as a way to express outrage. While research shows many boycotts come up short in forcing their targets to give in to the demands of protest organizers, they can have real impact in terms of lost sales and a damaged reputation. In the case of BP, however, experts say a boycott is likely to be only a nuisance when compared to the outsized legal liability the company is facing from the Gulf spill.

Will Windows Phone 7 Reboot Microsoft's Mobile Strategy?

Wed, 31 Mar 2010 14:51:19 EST

Microsoft has a lot riding on Windows Phone 7, the company's attempt to revive its mobile strategy and introduce an operating system that is more consumer friendly. With the move, the software giant is hoping to recapture momentum in a U.S. smartphone market dominated by Apple's iPhone and Research in Motion's BlackBerry, with Google's Android platform quickly gaining buzz. But Wharton experts say it's unclear if the company's latest offering will make Microsoft "phone fashionable" again.

It's a Long Way to 4G Nirvana

Wed, 17 Mar 2010 17:58:09 EST

Spurred by the data consumption of devices like Apple's iPhone, Motorola's Droid and the latest smartphones, wireless carriers are planning to upgrade their networks. Companies such as Verizon, AT&T and others have announced ambitious plans to make fourth generation (4G) services available to their customers over the next two years, enabling a wide range of new applications involving rich media such as video. Still, experts at Wharton and elsewhere note that 4G will take time to become a mass market phenomenon, in part because wireless spectrum is in short supply.

Grab Your Goggles: Will 3-D Be the Next Wave in Home Entertainment?

Wed, 17 Feb 2010 17:36:07 EST

James Cameron's three-dimensional (3-D) film Avatar -- now the highest-grossing film of all time -- is helping to set the stage for what could be the next wave in home entertainment: 3-D televisions and other electronics that aim to bring an immersive experience to mainstream living rooms. At the Consumer Electronics Show in Las Vegas in January, Sony and other companies unveiled plans to launch 3-D compatible televisions and other products, and 3-D content is already under development at networks such as ESPN. Still, Wharton faculty and other experts say it's unclear whether consumers, who have spent recent years upgrading to high-definition television, will reach for their 3-D goggles just yet.

Apple's iPad: A Gadget Killer -- or Just Another Gadget?

Wed, 03 Feb 2010 16:52:49 EST

Apple, which brought consumers such hits as the iPod and iPhone, is wading into a new product category with the launch of its iPad, a touch-screen tablet computer that CEO Steve Jobs has said puts "the Internet in your hands" -- and apparently much more. In fact, Apple has positioned the iPad as a universal device that not only functions like a laptop but also can play music, movies and video games, show pictures and hold a library of books. That puts it in direct competition with netbooks and popular single-use gadgets like Amazon's e-book reader, the Kindle. Will iPad be the one device that fits all, or will it just become one more gadget to juggle?

Will Google's Nexus One Change the Wireless Industry?

Wed, 20 Jan 2010 16:35:09 EST

On January 5, Google launched the Nexus One -- its new "superphone" -- with a good deal of fanfare. Although the launch itself was quickly overshadowed by the online giant's surprise showdown with China over censorship, the company's attempt to rewrite the rules of the wireless industry has not gone unnoticed. Through its online store, Google is selling the Nexus One directly to consumers, sidestepping service providers that operate as device gatekeepers under the traditional sales model. The operation is off to a somewhat rocky start, leaving some observers to wonder whether Google can adapt to its new role in direct sales, but the bigger question is whether Google can alter consumer behavior and the economics of an entire industry.

Google Everywhere: As the Search Giant Grows, How Much Is Too Much?

Wed, 02 Sep 2009 16:37:02 EST

As it expands into new markets with additional products and platforms, Google is beginning to look a bit like Microsoft in the mid-1990s: A company with big ambitions and an ever-growing list of competitors. Its latest skirmish with Apple over an integrated telephony and voicemail management application for the iPhone is just one example of what is likely to come, according to Wharton faculty and other experts. In addition, they say, as Google tries to be virtually everywhere that consumers are, it needs to avoid making the same mistakes that Microsoft made, and it should pay close attention to privacy issues.

Time for a Data Diet? Deciding What Customer Information to Keep -- and What to Toss

Wed, 18 Mar 2009 16:34:51 EST

Heartland Payment Systems, a credit card processor, may have had up to 100 million records exposed to malicious hackers. Payment processors CheckFree and RBS Worldpay, and employment site Monster.com have all reported data breaches in recent months, as have universities and government agencies. Experts at Wharton say that personal data is increasingly a liability for companies, and suggest that part of the solution may be minimizing the customer information these companies keep.

The Net Impact of Netbooks? It Depends on Who Uses Them for What

Wed, 26 Nov 2008 12:18:24 EST

Small, inexpensive netbooks -- portable computers smaller than notebooks but dependent on the Internet for file-storage and software -- are likely to have a disruptive impact on the PC industry, but there are many questions to resolve, experts say. Will netbooks poach sales of laptops? Are they replacements for smartphones? How will a weak economy affect sales? Will the devices increase the popularity of cloud computing? Stay tuned as this new technology continues to evolve.

3D Movies: Adding Depth or Falling Flat?

Wed, 01 Oct 2008 17:54:21 EST

Dreamworks Animation CEO Jeffrey Katzenberg called the latest 3D movie technology "the greatest innovation to occur in the movie business in 70 years." A bevy of theater chains are exploring or installing digital cinema and 3D systems in the second half of 2008 into 2009. Intel and others are creating tools for companies to make a new generation of 3D animation films. Experts at Wharton say 3D movies are back in vogue, but it's unclear whether the latest greatest technology can give theaters a sustainable competitive advantage over other forms of entertainment.

Fast Forward: Tech Giants Scramble For Bigger Piece of Growing Online Ad Market

Wed, 23 Jul 2008 13:40:28 EST

Microsoft, Google and Yahoo have been talking about -- and making -- deals that each believes will help secure its future in the fast-growing market for online advertising. No matter how their maneuvering concludes, advertising and marketing firms must get ready to adapt to new technology that promises to speed the migration of ads from traditional media to the web.

Betting on Betas: How Internet Entrepreneurs Are Creating New Paths to Online Revenue

Wed, 23 Jul 2008 13:40:28 EST

Some Internet entrepreneurs are blazing new trails to real revenue in the virtual world. In the examples that emerged from the recent Supernova conference, an annual technology event in San Francisco organized by Wharton professor Kevin Werbach, these models have something in common: building long-term relationships with customers.

Bridging the Global Digital Divide, One Laptop at a Time

Wed, 11 Jun 2008 16:25:47 EST

On May 20, the non-profit One Laptop per Child (OLPC) program unveiled the second version of its XO laptop, which is designed to bring affordable, modern technology to children in developing countries. In April, Intel announced its next-generation Classmate PC, which targets the same market. Meanwhile, Microsoft has been tweaking its Windows XP operating system for these educational devices, which also run on the open source Linux operating system. Experts at Wharton say that the focus on third world countries is promising, but they question whether these efforts will be effective.

Software's Future: Melding the Web and the Desktop

Wed, 31 Oct 2007 14:08:31 EST

It's been a busy few weeks for Adobe Systems, Microsoft and Google. All three have announced plans or new technologies that will address the latest vision of software's future -- one that combines the features of web-based applications with desktop software to create a hybrid model offering the best of both worlds. Indeed, the question today is not so much whether this desktop/webtop model will be adopted, but rather, which company will provide the best platform for implementing it. Knowledge@Wharton looks at both the opportunities and the limitations of this new approach.

Love Those Loyalty Programs: But Who Reaps the Real Rewards?

Wed, 04 Apr 2007 15:13:23 EST

At American Airlines' AAdvantge e-shopping site, more than 200 vendors -- including Bergdorf Goodman, Home Depot and Petco -- offer bonus miles to shoppers. At the Apple Store, a dollar spent earns one mile, while Hallmark pays 10 miles for each $1 in sales. Continental's OnePass program allows members to earn two miles for every $1 paid for electricity from Gexa Energy of Houston. The list goes on. But while the number of programs is increasing, they don't always provide a big payout for all their participants, according to Wharton marketing faculty.

At Google, the Search Is On for a New Approach to Old Media

Wed, 07 Mar 2007 14:51:20 EST

Viacom and CBS have pulled videos from Google's YouTube. The Academy of Motion Picture Arts and Sciences recently requested that some Oscar footage be taken down from YouTube as well. And Google's efforts to sell radio and print advertising have not met expectations. In short, Google's ability to navigate the traditional media landscape doesn't seem to be going particularly well. What's the problem? While Google has the resources to create deals with content companies, it still must contend with a number of confounding crosscurrents, including content owners' concerns over intellectual property and a clash of advertising models.

What's in a Name? For Apple, a Focus on the Digital Living Room

Wed, 24 Jan 2007 15:12:24 EST

Apple's name change from Apple Computer to Apple on January 9 highlights the company's new reality: CEO Steve Jobs' strategy today revolves around converged consumer devices much more than around personal computers. How successful will this new strategy be in the face of competition from Microsoft, Sony, Motorola, Samsung, Nokia and others who are looking to dominate the digital convergence domain?

To Diversify, or Not to Diversify: What's at Stake for Online Giants in Growth Mode

Wed, 13 Dec 2006 15:19:43 EST

Amazon plans to sell computing power like a utility company sells electricity. Google is building a suite of productivity software programs connected to the web to take on Microsoft. And Yahoo has launched or acquired so many properties that they run the risk of competing with each other. Such efforts could represent new growth areas and smart diversification moves. Or they could prove to be costly distractions. The big question: Should a company stay focused on its core competencies, or should it diversify to keep up with, or attempt to surpass, its peers?

The Move to Vertical Product Integration: Can Microsoft Succeed Here, Too?

Wed, 06 Sep 2006 14:30:41 EST

Given Microsoft's efforts to create a music player and service, dubbed "Zune," and its offer of design assistance to PC makers in preparation for the company's new Vista operating system, it appears that the software giant is increasingly dabbling in hardware and playing a bigger role in product design. The big question is: Why? While some analysts dismiss Microsoft's efforts as Apple envy, experts at Wharton say there is a bigger picture. Microsoft wants more control over integrating its software with the gadgets that could open new markets. Its real mission: Find new vertical markets to dominate so it can continue to grow even if its Windows monopoly erodes.

Microsoft's Multiple Challenges: Is Its Size a Benefit or Burden?

Wed, 17 May 2006 15:28:37 EST

Microsoft announces that it will spend about $2 billion to fend off rivals such as Google and thwart Sony's video game ambitions, and the company loses more than $30 billion in market capitalization in a day. Fair trade or overreaction? Probably a little of both, according to experts at Wharton. Microsoft certainly isn't hurting financially. The company reported net income of $2.98 billion on revenues of $10.9 billion for the quarter ending March 31. But the big question is whether that performance will be maintained over the next decade. One issue, say Wharton faculty and others, is whether Microsoft has grown too big to be nimble enough to compete with its long list of rivals on many fronts: Google in Internet search and advertising; Sony in video games with the launch of its Playstation 3 on November 17; Linux inside the corporation; and Apple Computer in digital media, to name just a few. By extending its reach into new markets, such as mobile communications and digital entertainment, is Microsoft in danger of stretching itself too thin?

MySpace, Facebook and Other Social Networking Sites: Hot Today, Gone Tomorrow?

Wed, 03 May 2006 15:07:25 EST

Popular social network sites, including MySpace and Facebook, are changing the human fabric of the Internet and have the potential to pay off big for investors, but -- given their youthful user base -- they are unusually vulnerable to the next new fad. As quickly as users flock to one trendy Internet site, they can just as quickly move on to another with no advance warning, according to Wharton faculty and Internet analysts, who offer some ideas on how these new sites can both increase user loyalty and generate revenues.

LSE, NYSE, OMX, Nasdaq, Euronext ... Why Stock Exchanges Are Scrambling to Consolidate

Wed, 22 Mar 2006 15:54:43 EST

The Nasdaq Stock Market's offer earlier this month to buy the London Stock Exchange is just the latest step in a long industry-wide evolution that includes consolidation, automation and conversion of privately held exchanges into public ones. Nasdaq is hardly alone in its attempt to expand. Its offer follows an unsuccessful bid for the London exchange by OMX, the Swedish Stock Exchange, in 2000. In recent years, LSE has also rejected bids by Euronext, Deutsche Boerse and Macquarie Bank of Australia. Wharton faculty examine Nasdaq's bid, other possible stock exchange combinations, and the changing role of institutional investors.

Will Microsoft's New 'Ultra-Mobile' Computer Fly or Flop? Past Experience Offers Some Clues

Wed, 22 Mar 2006 15:54:43 EST

Although Microsoft recently unveiled an 'ultra-mobile personal computer,' or UMPC, in a move to fill a market niche between laptops and handheld computers, it remains to be seen whether this latest innovation from the software giant will be a hit or flop. While Microsoft is following a "build-it-and-it-will-sell" strategy with the UMPC, technology history is littered with innovative products that never found a market, say experts at Wharton. As Wharton professor of operations and information management Eric K. Clemons puts it: "Build-it-and-it-will-sell strategies are a mixed bag."

Battle over Blackberry: Is the U.S. Patent System Out of Whack?

Thu, 16 Mar 2006 08:41:46 EST

On Friday, February 24, the long-running patent dispute between Research In Motion, which makes the popular BlackBerry wireless email and communications device, and NTP, a holding company that claims RIM technology infringes on its patents, will finally have its day in court. That's when a federal judge will consider a possible injunction that would effectively shut down BlackBerry service in the U.S. But perhaps just as important as the specific facts of this case are the broader questions it raises: For example, could RIM be shut down even as the U.S. Patent and Trademark Office (USPTO) is re-evaluating several of the disputed patents? Is the patent office bogged down with so many patent applications that it can no longer function effectively? Are companies abusing the original intent of patent law? And can a system that in 1977 permitted a patent for a "comb over" -- technically a "method of styling hair to cover partial baldness using only the hair on a person's head" -- keep up with technological innovation?

Complexity in Products and Services: Good or Bad, Depending on How You Manage It

Wed, 01 Mar 2006 17:04:26 EST

In an age of rapid product and service proliferation, companies are grappling with their portfolios of businesses, products, services and delivery channels to see which of them need to stay, be restructured, or be dropped. Knowledge@Wharton and George Group Consulting examined this issue in an online survey of Knowledge@Wharton readers completed last fall: Covering 424 executives drawn from more than 30 industry groups including financial services, business services, information technology, foods, industrial manufacturing and healthcare, the survey's findings indicate that complexity can impact companies on a number of levels -- from sales effectiveness, product quality and customer satisfaction, to capital efficiency and profitability. However, the survey respondents and experts from George Group and Wharton note, complexity can have an up-side if it is recognized and managed effectively.

Taming Complexity in Services: Stay Close to Your Customer (But Not Too Close)

Wed, 01 Mar 2006 17:04:44 EST

According to experts at Wharton and George Group Consulting, service companies such as banks or airlines are closer to their customers than their counterparts in the manufacturing industry, which can be beneficial, but they may be too close for comfort. In fact, they could actually be smothering both themselves and their customers with dispensable or outdated offerings, made worse by overburdened internal processes that ultimately hurt the essential elements of survival -- customer service and satisfaction.

From Retailers to Manufacturers, Complexity in Products Begs the Question: How Much Is Too Much?

Wed, 01 Mar 2006 17:04:36 EST

In a recent advertising mailer, one of the largest U.S. grocery retailers boasted having 300 varieties of beer and 1,800 varieties of wine. It seems like a great sales pitch, but what is the impact of all that variety on costs? Moreover, with 1,800 varieties of wine, what will be the customer response -- confusion or delight? Experts from George Group Consulting and Wharton agree that increasing product complexity in both retail and manufacturing is a very slippery slope: As a means of meeting evolving consumer demands or capturing new market share, expanded product portfolios can backfire because of the strain they place on already scarce resources, and because true profitability is masked. In addition, as companies expand their offerings, complexity can seep into internal processes, producing inefficiencies that can lead to customer dissatisfaction down the road.

Can Wikipedia Survive Its Own Success?

Wed, 25 Jan 2006 15:13:16 EST

It's not easy being Wikipedia, a free web encyclopedia created and edited by anonymous contributors. Just ask founder Jimmy Wales, who has seen his creation come under fire in just a few short months as the site fends off vandalism and charges of inaccurate entries. But Wikipedia, founded in 2001 as a non-profit organization, has become a big enough presence that it raises a number of interesting questions, including: Just how accurate is free content, given recent events at Wikipedia? Does the aggregate 'wisdom of the crowd' trump the expertise of knowledgeable individuals? Does Wikipedia's policing mechanism work? And does the controversy over Wikipedia merely reflect further tension between old and new media? Wharton experts, along with Wales, offer some answers.

The 2006 Gadget Parade: A New Era of Convergence and Convenience

Wed, 08 Feb 2006 16:48:22 EST

Apple's iPod again ruled beneath the Christmas tree in 2005 after the latest model of the iconic music player was outfitted with a video screen. And as the new year begins, a long-anticipated era of convergence in consumer technology products draws closer, according to Wharton faculty and technology analysts. Meanwhile, cell phones that play video, e-mail delivered to handheld computers, telephone conversations over the PC -- and hundreds of other glimpses into Christmas future -- were on display at the annual Consumer Electronics Show in Las Vegas last week where the stepped-up presence of digital giants, including Microsoft, Google, Yahoo and Intel, signaled their ever-increasing interest in expanding from the office into consumers' living rooms.

Will the Online Book Publishing Flap Rewrite Copyright Law?

Wed, 08 Feb 2006 16:49:25 EST

The latest frontier in the digital content revolution -- efforts by Google, Amazon and others to turn millions of books into bytes that can be easily searched, accessed and sold by the page -- could redefine copyright law and change the way knowledge is shared around the world, say experts at Wharton. Prompted by Google's controversial move to scan copyrighted works, the issue leaves many unresolved questions: Does the greater good of putting books online outweigh current copyright law? Is Google's complete scanning a violation of copyright law even if the end user doesn't get much more than a small excerpt of the work in a search result? Should Google be required to get publishers' permission before scanning content? Perhaps most importantly, is copyright law designed for printed materials still valid in the digital age?

As Sony Gets a Tune-up, Samsung Zooms Ahead

Wed, 19 Oct 2005 16:43:39 EST

In the same month that Sony laid off 10,000 workers amid a restructuring, Samsung announced a memory chip that will double the capacity of digital cameras and music devices, a new line of 50-inch plasma television sets and plans to create a new mobile phone design. The contrast between the two companies is stark. Sony, based in Tokyo, announced on September 22 that it is retooling to better integrate its media and electronics businesses. Meanwhile, Seoul-based Samsung remains focused on a key goal: To become the next Sony.

Sony's Next Act: Will It Play?

Wed, 21 Sep 2005 15:26:48 EST

At the end of the month, Sony CEO Howard Stringer intends to release his grand plan to help the struggling Japanese consumer electronics and media giant regain its past glory. The big question is whether the company - whose sales totaled $66.9 billion in 2004 - has the corporate will to make a comeback. No one denies that Stringer has his work cut out for him. On July 28, the company reported its second consecutive quarterly net loss, a deficit of $66 million for the first quarter ending June 30, and substantially cut its profit outlook for the current fiscal year. Wharton experts and others discuss what caused Sony to stumble and what the company needs to do to get back in the game.

Tune in Tomorrow for the Digital Living Room?

Wed, 15 Jun 2005 15:46:04 EST

When Microsoft introduced its long-awaited Xbox 360 console on May 12 in an MTV special, its intentions went beyond just fun and games. The company called the long-awaited product a "future-generation game and entertainment system." Its market? The increasingly crowded living room. Keeping in step with Microsoft, a long parade of technology companies is targeting home entertainment and selling wares that were typically offered by consumer electronic giants such as Sony. Is the so-called digital living room fact or fantasy? Who will the winners ultimately be? Wharton experts say the digital living room is becoming a reality -- slowly.

Microsoft's "Longhorn" Operating System: Sure Hit or Longshot?

Wed, 18 May 2005 15:30:26 EST

When Microsoft chairman Bill Gates touts his company's next Windows operating system, code named "Longhorn," he can barely contain his enthusiasm, adding "it will be super to get that out in the hands of our customers." The big question is whether customers will share Gates' enthusiasm more than a year from now. The answer will depend a lot on upcoming improvements in software security, sales in the technology industry and Microsoft's ability to remain a cutting-edge innovator.

Do You Know Where Your Identity Is? Personal Data Theft Eludes Easy Remedies

Wed, 20 Apr 2005 15:36:00 EST

ChoicePoint, a consumer data vendor, hands over personal information on at least 145,000 people to criminals posing as small businesses. Hackers swipe the personal information of 32,000 people who use the database Lexis-Nexis. Bank of America loses backup tapes containing 1.2 million federal employee records. Every day, it seems, a new identify theft incident is reported followed by new rounds of questions: Should data vendors be regulated? Can identity theft hurt e-commerce? How do individuals protect themselves? Unfortunately, suggest Wharton faculty and others, no simple answers are available, especially when personal information is so easily available through search engines.

The IBM/Lenovo Deal: Victory For China?

Fri, 14 Jan 2005 14:58:37 EST

With the sale of IBM's personal computer business to Chinese company Lenovo Group Limited, two emerging trends quickly move front and center: The increasing commoditization of technology and the emergence of Chinese companies as global players. Wharton professors say both trends warrant watching and raise some key questions. Can Lenovo become a global player and integrate IBM's U.S. managers? Will IBM's PC customers defect to rivals like Dell Computer? Can state-owned Chinese companies become dominant in the international markets? Professors from Wharton and Universities in China, as well as Wall Street analysts, offer their opinions.

How Complexity and Clutter Can Take Over and Ruin Your Business

Wed, 17 Nov 2004 17:06:54 EST

This phenomenon is easy to spot in the case of individuals. Motivated executives often add task upon task to their responsibilities and eventually become dysfunctional because they try to do too many things with too little time to do any of them well. Organizations are vulnerable to the same creeping malaise. Complexity, or clutter, eats away at profits by diverting scarce resources and by masking true profitability. Eric Clemons, a Wharton professor of operations and information management, recently sat down with Stephen A. Wilson, who along with Michael George, has written a new book, Conquering Complexity in Your Business, which talks about how complexity can sap a company's operations. One of Wilson's colleagues, Matt Reilly of the George Group, joined the discussion.

Combat in High C: Microsoft vs. Apple

Wed, 20 Oct 2004 15:04:06 EST

Last week Microsoft unveiled the new version of its Windows Media Player, firing the opening shots in a long-anticipated battle against Apple Computer for supremacy in the online music business. Both companies are targeting the fast-growing market, whose sales are expected to be $270 million this year but could grow to $1.7 billion by 2009. Experts at Wharton and elsewhere say that for now, Apple, whose iTunes music service commands a 70% market share, has an impressive lead. Over time, however, two strategic issues make Apple vulnerable to being dislodged by Microsoft or other rivals.

What's Behind the Overseas Forays of U.S. Online Giants?

Wed, 28 Jul 2004 12:53:59 EST

EBay has taken over Baazee.com in India. Yahoo has launched Yisou, a search engine, in China. Google has acquired a stake in Baidu, a Chinese search engine. What's driving the international expansion plans of these Internet companies? More importantly, will the business models of these U.S. companies lend themselves to being exported and transplanted overseas? Experts at Wharton and elsewhere note that localizing a global business can be a daunting challenge - but if handled right, the payoff can be huge.

Microsoft and the EU: Who's Right and Does It Really Matter?

Wed, 02 Jun 2004 14:36:33 EST

A finding by the European Union that Microsoft has abused its power in the market for personal computers represents a blow to the company, but the software giant is so flush with cash and so dominant a player in the PC industry that it will not sustain long-term harm as a result of the ruling, according to faculty members at Wharton and elsewhere. These experts differ, however, on whether the EU made the right decision. Some say the company plainly violates antitrust laws. Others say it's not so clear-cut.

In Business, as in Combat, Victory Depends on a Strong, Swift Offense

Wed, 25 Feb 2004 15:03:40 EST

Many people equate operating a business in today's environment with active warfare. Brutal competition, ethical strife, unanticipated changes in the marketplace, technological shifts and a lingering recession can leave a company battle worn. In a new book, two former Marine Corps officers and a Wharton professor break down the techniques of maneuver warfare and apply them to the day-to-day rigors of the corporate world.

New Law: Is Spam On the Lam?

Wed, 17 Dec 2003 16:41:41 EST

New federal legislation in the U.S. to put a lid on Internet spam – the torrent of unwanted commercial e-mails promoting Nigerian business investments, mortgages and body-parts enlargement – may help against the electronic onslaught. But the law – known as the Can Spam Act – has serious limitations, at least for those who are serious about cracking down on the biggest abusers. Better solutions to the spam problem can be found in economic and technological change, according to Wharton faculty and others.

How to Restore Credibility at the NYSE

Wed, 24 Sep 2003 00:00:00 EST

New York Stock Exchange chairman Richard A. Grasso�s controversial $140 million pay package was a flash point that illuminated other issues at the Big Board and could trigger major change, including the possibility of the exchange itself going public. Conflict between the NYSE�s role as a regulator and trading exchange, flaws in the structure of its board, and concerns about whether its specialist-based trading system is fair to investors -- all these issues must be addressed before the 211-year-old exchange can regain its credibility, say Wharton faculty and other experts.

What�s Next After Iraq? The Plains of Abraham or the 30-Year War?

Wed, 23 Apr 2003 00:00:00 EST

The fall of Saddam Hussein's regime has hardly ended the uncertainty that confronts the world economy. Even as the U.S. and its allies try to establish a new government in Iraq, questions linger over issues such as their ability to sustain the peace or fend off retaliatory terrorist attacks. At times of such uncertainty, Wharton professor Eric Clemons and his colleague Steve Barnett believe that companies need to explore at least four possible scenarios for the future and develop strategies to cope with each of them.

Maker�s Mark President in High Spirits Over Company's Premium Bourbon

Sun, 09 Feb 2003 00:00:00 EST

Kentucky-based Maker�s Mark produces only 500,000 of the industry�s 13.1 million cases of bourbon. Yet last year the company�s distinctive red-wax-capped bottle was featured in a scene from the blockbuster hit �Spiderman.� What accounts for that kind of �buzz� and how do you keep promoting your brand in the future? President Bill Samuels talked about his company and its distinctive approach to marketing during a visit to campus last month.

Vive la Difference: Using Hyper-Differentiation Strategies to Build Value and Boost Profits

Wed, 15 Jan 2003 00:00:00 EST

When some small beer makers in the U.S. brought their drinks to market, they deliberately chose to make their taste as different as possible from the leading brands. This approach helped them build small but profitable niches for their products. Companies in other industries could benefit from pursuing similar strategies, say Wharton professor Eric K. Clemons and colleagues in a new research paper.

Can Holiday Shoppers Save the Economy?

Tue, 03 Dec 2002 00:00:00 EST

November's Black Friday ritual � which begins with shoppers lining up outside shopping malls at dawn and ends with left-over merchandise strewn up and down store aisles � has become an integral part of the Thanksgiving weekend. This year the stakes for retailers are higher than usual. Can consumers, who are credited with keeping the economy afloat during a nearly two-year stock market slump, spend enough this holiday season to tip retailers� books from red ink to black? Or will too many discounts, sales and specials drain off much-needed retail profits?

�Business Processes Are Moving from the West to Other Parts of the World�

Wed, 25 Sep 2002 00:00:00 EST

Ravi Aron, a professor of information and operations management at Wharton, has been working with Jitendra Singh, a Wharton professor of management, to study the strategic questions companies face as they seek to outsource tasks that were once thought to lie at the core of the firm � the business processes. In an interview with Knowledge@Wharton, Aron discusses the theoretical and organizational challenges of cross-border business process outsourcing.

The New New ATMs: Want Fries With Your Cash?

Wed, 25 Sep 2002 00:00:00 EST

Banks have been trying to make automatic teller machines (or money access centers) more profitable by offering services beyond mere cash withdrawals. Many ATMs now let customers top up mobile-phone minutes, buy stamps, print mini-statements, or pay their bills � for a fee, of course. How will customers react to these new ATM services? Experts at Wharton and elsewhere say that unless banks are careful how they offer these services, they could end up annoying customers instead of pleasing them.

Sony vs. Sony

Wed, 05 Jun 2002 00:00:00 EST

As the recording and electronics industries face off over digital music, one company has had the uniquely uncomfortable position of standing on both sides of the issue: Sony. The only company to own a major music label, a major computer manufacturer and a major consumer electronics business, Sony has been insulted by its own trade associations and has even sued a company that Sony itself had invested in. Wharton professors and others suggest a new business model to help Sony out.

Will Commission Cuts Kill the Small Travel Agent?

Wed, 08 May 2002 00:00:00 EST

When an industry�s revenue base vanishes, it�s time to collapse � or transform. That�s the choice travel agents have faced since March when eight of the nation�s ten largest airlines reduced their base commissions to zero. As a result, agents will have to change from being commission-dependent retail clerks into service-focused professionals with knowledge that leisure travelers are willing to pay for, according to Wharton professors and other experts.

Technological Wizardry Aside, How Can the Internet Reshape Your Business?

Wed, 24 Apr 2002 00:00:00 EST

At a recent Wharton conference entitled, �The Internet and the Twenty-First Century Firm,� Wharton faculty and others moved beyond the e-commerce hype of the last century for a look at how the Internet can help determine company strategy. Disgruntled employees, scuba diving and Pizza Hut fit into discussions about intellectual property, marketing and disclosure of intangible assets.

The New Business Reality

Wed, 30 Jan 2002 00:00:00 EST

ideas about what effect those events would have on business and the economy. It was clear, however, that even before the attacks, major changes were underway that would alter the business landscape. To help understand these changes, Wharton�s Aresty Institute of Executive Education held a three-day symposium in December called Wharton on the New Business Reality: Scenarios and Strategies for the Future. Knowledge@Wharton covered the symposium.

The Microsoft Settlement: A Remedy That Pleases Almost No One

Wed, 05 Dec 2001 00:00:00 EST

The November 2, 2001 settlement between Microsoft and the U.S. Justice Department really didn�t settle anything, considering the amount of criticism leveled at the terms of the deal. But part of the problem, say Wharton professors, is the difficulty of finding remedies that are both effective and don�t cause injury. Given the growth of new economy firms, it�s a dilemma that is only going to get worse.

Should You Buy Your Software Or Lease It?

Thu, 13 Sep 2001 00:00:00 EST

If giants like Oracle and Microsoft have their way, business users will eventually switch from buying software to leasing it, thereby assuring software providers a more reliable and constant source of income. But not everyone is convinced of the virtues of leasing. The security issue is just one of several concerns.

Hewlett-Packard and Compaq: If It Goes Through, Here�s How to Try and Make It Work

Thu, 13 Sep 2001 00:00:00 EST

Faculty members at Wharton who have studied mergers and acquisitions and industry consolidations say Wall Street�s thumbs-down on Hewlett-Packard�s proposed acquisition of Compaq comes as no surprise. Still, if H-P and Compaq proceed with the transaction and receive shareholder and regulatory approval, there still may be additional ways to try to strengthen the new company�s competitive position, say several professors.

Poachers Are Out to Plunder Your Intellectual Property � Can You Do Anything?

Wed, 01 Aug 2001 00:00:00 EST

As more companies outsource non-core activities and enter into alliances to extend their competitive reach, the risk that someone � a potential partner or vendor � could poach their intellectual property is increasing. While the risk of such theft is hardly new, it is rapidly becoming a serious problem in today�s post-industrial, information-driven society. Wharton�s Eric K. Clemons and Lorin M. Hitt have been studying the issue. Clemons presented the major elements of this research at a recent conference.

Measuring Returns on IT Investments: Some Tools and Techniques

Wed, 18 Jul 2001 00:00:00 EST

How can executives measure returns on investments they make in information technology? This complex issue touches everything from decisions about replacing desktop computers with laptop models to investments in complex software systems. Experts from Wharton and Intel, the giant chip maker, suggest some methods that may help executives approach these questions.

Measuring Returns on IT Investments: Some Tools and Techniques

Wed, 18 Jul 2001 00:00:00 EST

Despite a Turbulent Take-off, Orbitz Is in Demand

Wed, 20 Jun 2001 00:00:00 EST

Since its bumpy launch on June 4, online travel agency Orbitz has overcome technology glitches and customer service problems on its way to providing what it says will be �the most low fares to Planet Earth.� Questions remain as to whether Orbitz can beat the competition and earn consumers� loyalty, but for now at least it seems that air travelers are more than willing to buckle their seatbelts and enjoy the ride.

Changing Channel Distribution Models in the Internet Age

Wed, 06 Jun 2001 00:00:00 EST

While the recent meltdown of the dot-com sector has raised concerns about Internet business models in general, �channel power� � the use of electronic distribution channels � continues to have a significant impact on the e-commerce landscape. Yet the adoption of channel power is not for everyone. Wharton professor Eric Clemons suggests companies carefully analyze which products are appropriate for electronic distribution before bypassing more traditional channels.

New Internet Pricing Models Bring Pain, and Fortune, to Retailers

Thu, 22 Feb 2001 15:57:24 EST

With the click of a mouse, the ability of consumers to compare prices for everything from a new car to a new condo to a new coat has been dramatically transformed. Businesses in turn have had to throw out old, static pricing models and find new ways to respond to customers� digital dexterity. Results have been mixed.

Linking Customer Behavior to E-Commerce Strategy

Wed, 06 Dec 2000 14:31:31 EST

In an article on Nov. 13, 2000, in the Financial Times� Mastering Management series, Wharton operations and information management professor Eric Clemons and Wharton Ph.D. student Michael Row note the critical importance of consumer behavior in establishing a web retailing strategy. The two researchers look at the type of relationship between buyer and seller, the scope of goods and services linking buyer and seller, and the four competitive landscapes that result from the interplay of these forces.

Stock Exchanges in the Market for Partners

Wed, 07 Jun 2000 15:48:03 EST

In Europe, Asia and the United States over the past few months, stock exchanges large and small have either proposed merging, announced alliances or held conversations with prospective partners. Exchanges are seeking, among other things, to increase their capabilities and to fend off increasing pressure from electronic communications networks. Wharton scholars analyze the regulatory, financial and technical issues involved in this scramble for new alliances.

Is Online Consumer Spending Slowing Down?

Wed, 01 Mar 2000 13:58:19 EST

With Internet sales volume expected to reach $133 billion by 2004, electronic merchants are gearing up for a spree of online consumer spending. But their efforts may be misdirected, according to recent data from the Wharton Forum on Electronic Commerce. Forum findings indicate two trends: First, a decline in the rate of growth of online spending per person even though total online retail spending is increasing; and second, a significant dropout rate of online shoppers. In 1998, 15% of the consumers who bought online in 1997 did not buy online in 1998. These trends, according to a Wharton researcher, have �huge implications for the business plans of many B2C dot-coms.�

Have Web Access, Will Travel

Wed, 01 Sep 1999 11:37:43 EST

The Internet has created an environment where customers have almost unlimited access to information relevant to any and all purchasing decisions, or what the Wall Street Journal recently dubbed the "Golden Age for consumers." How will this Golden Age affect retailers? How will it affect margins? What pricing strategies, other than offering lowest possible prices and accepting lowest possible margins, can retailers employ? Wharton�s Eric Clemons, Il-Horn Hann and Lorin Hitt set out to answer these and related questions as they relate to the online travel industry. Both retailers and consumers should find their conclusions instructive.