CASE APPLICATION #1 Flip Flop ground when it was The Flip broke new inexpensive

Question

CASE APPLICATION #1 Flip Flop ground when it was The Flip broke new inexpensive and ve probably seen them at weddings or graduations. loved that it was pocketable, of and maybe even at parties No, not customers from the arm that flips out they're the handheld Flip they're name came directly to a c the brainchild of some San video camcorder Flip was body and lets the user connect it that opened when Francisco entrepreneurs whose camera video-editing software idea was to create a pocket-size, inexpensive. and easy-to-use also had the actual video video camera. Considering that most video cameras were big. it was connected to the computer. Although footage for bulky, complicated, and expensive, that idea seemed on camera seemed it recorded remarkably good cameras, te target. And it was! When Flip went on sale in 2007, it right tiny, unlike other video you didn't quickly camera of its size. In addition, dominated the camcorder market as some 2 mi on were sold Flip could be held comfortably in front of you so in the first two years. "Then, in 2009, the founders cashed feel "removed" from the event being recorded. The produc out and sold to Cisco Systems. was exactly what the found. the computer networking gi pocket-sized, inexpensive, and ant, for $590 million." Not a bad payday, huh! For Cisco, easy-to-use video camera. the acquisition was a key to its strategy of expanding in the When Cisco Systems decided to acquire Flip, one of the consumer market, especially as homes became more media- hottest consumer products to hit store shelves in a while, many enabled. However, two years later, in April 2011, Cisco an- industry analysts questioned that decision, believing it was a nounced it was "killing Flip and laying off 550 employ "odd fit for the company that's best known for its business As one analyst said. "It's a testament to the pace of innovation consumer electronics and smartphone technology. More services. The Flip camera was the finst tre more functionality is being integrated into smartphones 43 and consumer product under the Cisco umbrella. In its announcement Four years. That's all it took for the Flip video camera, the Cisco said that the acquisition was a key to its strategy to expan most popular video camera in the United States, to go from hot momentum in the media-enabled home. There was no douht start-up to obsolete. But in the Cisco was serious about the company's desire to exp its matt where things happen even life cycle of tech products from technical components into true consumer electronics. And of an eye- unusually fast, this flipflop seemed to be in was another variable at work here, as well acquisiie fast. as one analyst said, especially for a "hot" product. What happened? Digital Technologies (the actual company behind the Fl camera) sign that Cisco was making a statemen

Explanation / Answer

25) The analysts has felt that it is not a good strategy for CISCO to acquire Flip because Flip is compeltely in a different line of business and does not in any way will be helpful for CISCO current line of business, Also entering into a different line of business requires careful planning and market factor analysis which was not done properly by CISCO that is clearly evident that its strategy is just to enter into electronics goods segment to expand.

26) CISCO Consumer marketing is done and depended purely on creating brand awareness through advertisement and sponsorship. It is difficult to adapt the marketing strategy for companies like CISCO which previously had dealt with businesses as there is no such marketing campaign needed for businesses and it is completely a specific target oriented unlike products that have to be appealed to a mass or large number of people. Competition is high in product segments rather than service segment.

27) CISCO could have engaged in R &D and innovation parallely with the advertising strategy and developing and adding new features in FLIP. Since FLIP has a good market image it cab be saved from being getting obsolete by continous improvements through R & D when the market is becoming extremely fierce with smartphones.

28) CISCO try to shut down its Flip business because the market got dominated by smartphones and the Flip product became obsolete.

29) The strategies of acquisition and advertising startegies, diversification strategies can be see in this case.

30) Planning in both the cases could have shown the future oppotunities and threats for the business and could have given a clear picture of required strategies to be developed to survive in the market.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.