G202 CASE STUDIES EXAM WITH VERIFIED QUESTIONS AND CORRECT ANSWERS GRADED A+

G202 CASE STUDIES EXAM WITH VERIFIED QUESTIONS AND CORRECT ANSWERS GRADED A+ Spotify non-market shock - ANS-digital tech shock led to more competitive distribution space (value chain ratios stayed the same) produced music value chain - ANS-most revenue with record labels (70% due to copyrights) piracy in produced music value chain - ANS-contributed to more competitive distribution space; shrinks size of revenue pie, but each slice (of revenue stream) stays the same size change in music industry distribution space - ANS-from brick & mortar, online retail, and radio/synchro to piracy, digital download, and streaming file sharing legality= what type of politics? - ANS-interest group politics; depends on relative strengths...record labels have relative strength bc of copyrights consumer preferences for digital music - ANS-ease of use, purchase, access, storage, playability, sharing; customization; cheaper cons of digital music for customers - ANS-low quality, loss of art, no physical product, no re-sell did music labels first embrace digital? why or why not? - ANS-no bc of file sharing which threatened value of copyrights how have music labels changed their business approach towards embracing digital/online platforms? - ANS-trying to create more competition for distributors (Amazon DRM-free music library) and decrease their profitability (increase Pandora's royalty fees) source of Apple's digital music profits - ANS-Apple devices drive sales, not iTunes sales (close ecosystem); but iTunes and Apple devices are complementary products reason for Spotify's losses - ANS-only 20% of music industry revenue in distributors; high competition and labels still receive majority of profits Spotify's potential competitive advantage - ANS-strong network effect winner take-all market characteristics - ANS-high switching costs, significant network effects, high barriers to entry Ventria non-market shock - ANS-social (anti-GMO activists) and political (CA Secretary of Agriculture) Uber non-market shock - ANS-technological why is Uber in the red? - ANS-20% revenue share isn't enough to cover costs of tech development, lobbying, and litigation Uber's competitive advantages - ANS-efficient scaling in 2-sided market, tech-based reductions in search costs, avoidance of regulatory compliance Uber's legitimacy concerns - ANS-political: litigation/lobbying costs cheaper than compliance