What is convergence? What kind of challenges does it present?
What will be an ideal response?
The digital revolution is causing dramatic changes in industry structures. Convergence is a term used to refer to the coming together of previously separate industries and product categories. New technologies affect the business sector(s) in which a company competes. For example, Sony was a consumer electronics company best known for innovative products such as transistor radios, Trinitron televisions, VCRs and other stereo components, and the Walkman line of personal music players. Then, Sony entered new businesses, acquiring a record company and a motion picture studio. These acquisitions did not represent convergence because they occurred in the early days of the digital revolution. Motion pictures, recorded music, and consumer electronics were still separate industries. Today, however, Sony is in the "bits" business: its core businesses incorporate digital technology and involve digitizing and distributing sound, images, and data. Companies are faced with challenges of changing, acquiring, and moving on with technologies. If not, companies like Kodak and Motorola did not converge, and they are finding it hard to come up with a competitive model.
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Costs incurred subsequent to the acquisition of an asset are capitalized if they provide future benefits.
a. true b. false
The budgeting process has three important guidelines: (1) Employees affected by a budget should be _____________ when it is prepared (participatory budgeting), (2) goals reflected in a budget should be ____________, and (3) evaluations should be made carefully with opportunities to _______ any failures.
Fill in the blank(s) with the appropriate word(s).