Scientific-Atlanta, Inc. Harvard Case Solution & Analysis

Scientific-Atlanta, Inc. Case Solution

Scientific-Atlantia (S A), which is a leading manufacturer of cable TV equipment, is confronting strategic challenges in mid-2004. SA developed technology that substantially reduces switching costs, which is placed to gain market share because it is an 18-month lead over Motorola in developing cable set-top boxes that feature digital video recorders (DVRs). Cable operators are ready to offer DVRs to stem subscriber declines to satellite TV.

The case asks whether S-A should vigorously pursue opportunities to overlay its set tops in cable systems that formerly applied exclusively Motorola equipment. If so, to what extent should S-A subsidize cable operators' remaining switching costs? Are there dangers in introducing more competition into what had formerly been a duopoly that is stable? Also investigates S A's strategic choices for coping with a transition to all-digital television technology and consumers' growing demand for solutions for managing their digital media files (pictures, music, etc.). Asks whether S A should continue to offer an integrated, proprietary, end-to-end transmission solution or, instead, adopt a more open "ecosystem," relying to a greater extent on third-party software and hardware providers and offering solution elements on an unbundled basis.

PUBLICATION DATE: June 09, 2004

This is just an excerpt. This case is about STRATEGY & EXECUTION

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