I am becoming more critical on real-life businesses since I started taking the Technology Strategy class. For instance, I just realized that an ex-colleague of mine have just started a new company providing semiconductor yield management software tools and consulting. Being similar with this industry, I evaluated his business with the principles that I learned from the strategy class and I don't like what I see. I see 2 main problems with his business. First, there're no groundbreaking products or services that his company has to offer. Second, yield management is a saturated and established sector in the semiconductor industry. The barriers to entry for a new startup without a breakthrough products or services are very high to almost impossible. Furthermore, just like any competitive market, current companies are being squeezed out of the market because of competition. I am a huge supporter of entrepreneurship but I feel that pursuing a well-established market without groundbreaking products or services simply doesn't sound like a sound strategy to me.

On other business news, I have just learned that Adobe had just acquired Macromedia. With that move, Adobe practically has the entire computer graphics market cornered. However, will the merger of two different company cultures be seamless? But tactical questions aside, I suspect that Adobe is making the first move to acquire Macromedia out of fear that Microsoft may do it before Adobe does. Perhaps, this makes sense since Microsoft never really got a foothold in the computer graphics market and acquiring Macromedia seems like a good strategic move for the software giant. In terms of new products and the Internet, coupled with Adobe's own product offerings like Acrobat and Photoshop, Adobe will also receive a diverse portfolio of Internet enabling products such as Flash and Dreamweaver from this acquisition. Is Adobe also trying to corner the Internet market with this acquistion? Maybe this acquisition is starting to make sense to me now.

4/21/2005 11:21:38 PM (Eastern Daylight Time, UTC-04:00)

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