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Indian Institute of Management Kozhikode

Executive Post Graduate Programme in Management (Kochi)


End-Term Examination

Course Title Operations Strategy


Instructor Prof. Arqum Mateen
Duration 3 hours 30 minutes
Maximum Marks 40
Quarter VI

Name: Rohit Gulshan Bhagat Roll No. EPGPKC-06067

Instructions:
1. Mention your name and roll no. in the space indicated.
2. You are allowed to consult all the reading materials provided as part of the course.
3. Marks allotted to each question have been indicated at the appropriate place.
4. This question paper contains 5 pages.
5. Keep your answers concise and to the point. Marks would be awarded on the basis
of the logic and coherency of the arguments presented. Limit the answers to the
space provided.
6. In case of missing information, make suitable assumptions, and clearly state the same.
7. The answers have to be typed in the space indicated. Keep the font size appropriate. The
instructor/institute may choose to use anti-plagiarism solutions.

Read the case ASUSTeK and the Google Nexus 7 Tablet and answer the following
questions:

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Question 1. If ASUSTeK and Google want to design a tablet to compete with Apple iPad,
what challenges do they face. [15 Marks]

Advantages Apple iPad has over other competitors in the Market.

 Market Leader in Mobile Technology and PC


 Strong supply chain network
 Apple focuses on delivering quality products and experience to its customers
 Apple uses its own OS and application store
 Products are distributed using company outlets and also controls its supply chain
 Follows subscription based model for services offered through its application,
giving the company a cost advantage
 Apple customers are loyal to the brand

Google Ecosystem is a hit in the Smartphone segment, however, the PC and Tablet
segment is majorly dominated by Apple (approx. 60% of the total market share)

 Improve on Supply chain network (Backward vertical Integration)


 Product design (hardware) and software, competing with Apple design and quality
is a challenge
 The company was using Android OS and application from its play store,
 It was very vulnerable to getting duplicated easily as it is highly dependent on
others for supply chain and making it available in public domain
 Low brand loyalty of consumers towards Android platform

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Question 2. How successful do you think Google will be in its vertical specialization model
competing with Apple? What should Google do next? [15 Marks]

Advantages Apple has with its Vertical Specialization model


 Cost advantage
 Differentiated advantage
o Technology
o Innovation
o Brand
o First to market or
o Quality
 In-house development of technology

Challenges ahead of Google


 High customer loyalty of Apple customers, apple products are perceived with high
quality
 As vide variety of tablets available in the market use Android OS, it is a challenge
for google to differentiate its products
 Lack of innovation

What should google do


 Must find a stronger product differentiation and penetrate the market
 Focus on Consumers
 Focus on product quality
 Aggressive pricing
 Apple products come with a limited storage space, Google may offer additional
storage
 Innovative products

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Question 3. How does a company like ASUSTeK differentiate itself? [10 Marks]

 ASUSTek should invest 15% of more resources for innovation of its existing
products and developing new products
 Asus is a leader in producing motherboard, it should follow ‘vertical integration’
to control its supply cahin activities
 Diversify the product range and continue to invest in R&D
 Categorizing its product, i.e. “Tablet for Students (economical products)” or
“Business Tablet (high quality hardware and application support)”

Transformational Ambition:
Create a Eee PC created a whole new
new Market market segment category
to address ‘Notebook’. Similar to these
customer lines, the company should
needs work on more innovative
products that differentiate
Adjacent Ambition: ASUSTek and its products in
the market
Entre ASUSTek may
adjacent upgrade is popular
market EeePC as per the
changing market
trends and also venture
into mobile
Core Ambition: technology business

ASUSTek may
Serve continue to use and
existing optimize its existing
customers set of products to its
and Market customers and the
market segment

Use existing Upgrade and add Develop new


products incremental products
products

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