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The business of wimax - Pareek D.

Pareek D. The business of wimax - Wiley publishing , 2006. - 330 p.
ISBN-10 0-470-02691
Download (direct link): thebusinessof2006.pdf
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The fundamental logic for the creation of new, state-of-the-art strategies for a successful performance that meets the market challenges created by WiMAX are:
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• Strategy development - conception of strategic options by assessing market potentials from a financial as well as a technical point of view. A suitable method is value chain analysis.
• Strategy evaluation - test of the strategic conceptions and hypotheses for plausibility and feasibility which can be a check against the market challenges and against the corporate strategy pursued so far. Determination of necessary capabilities and other important factors can be done using SWOT and VRIO analyses, which are tools to assess a company’s strengths, weaknesses, opportunities and threats as well as its qualities that are valuable, rare, costly to imitate and actually exploited by the organization.
• Strategic positioning - selection of a strategy and the identification of options for the strategic position. A useful tool in this context is the strategy matrix.
• Strategy recommendation - a conclusive concentration of the above-mentioned exercise, which defines the ground rules for the players.
Prescription to Service Providers
New entrants
The prescription for new entrants is therefore to make absolutely sure that their products and services constitute disruptive innovations. They must establish a firm foothold, either in a new market, or in a low-end market, that will pay them to deliver the kinds of improvements that can eventually lead to disruption of mainstream markets. By exploiting the asymmetries of motivation that define competition between disruptors and incumbents, new entrants can enjoy a high probability of success, even in a capital-intensive, scale-sensitive industry such as telecommunications.
Incumbents
Incumbents face a more difficult challenge. Their future depends on their ability to continually deliver a stream of sustaining innovations that their most important customers value. Staying on the industry’s sustaining trajectory of innovation is critical not merely to success but also to survival. However, simply surviving is not what shareholders reward. Profitable growth has to be the objective of every senior management
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team. Since every sustaining trajectory must eventually run out of room to grow, persistent profitable growth depends on finding and exploiting disruptive innovations. So the eternal struggle between present profitability and future growth can be re-cast as the tension between sustaining and disruptive innovations.
WiMAX: Threat or Opportunity
In the race to deliver broadband to consumers and businesses, many wonder if WiMAX will be another arrow in an incumbent’s quiver or a new weapon employed by nimble competitors. In the dawn of this new market, traditional wireline carriers and wireless operators are trying to determine how - if at all - to embrace this technology.
Key to this development will be careful planning by the incumbents to determine how to best utilize this emerging wireless technology - just as they begin to analyse moves with Wi-Fi, another disruptive technology.
Technologies make many things possible, but if they are not in demand, they may never become adopted or even noticed. Technologies can also create production efficiencies and cost savings, but earning a fair return on large upfront investments requires that firms change the way work is organized around technologies.
In today’s rapidly developing, technologically connected world, organizations have the power to shape the future and adapt to their changing environments. In order to survive, organizations must build new relationships with outside players, be in a position to observe the revelation of information and be armed with a rich set of choices from which to select the appropriate response.
However, in many instances the future choices themselves are far from known. In other words, much of the value comes from an ability to gain proprietary learning from strategic experimentation. Technology presents today’s organizations with valuable opportunities and difficult challenges in the face of tremendous uncertainty. Therefore today’s organizations must evolve flexibly and intelligently or face extinction.
The WiMAX revolution is only beginning. As with any new standard, the first inclination of some will be to deploy the new technologies right away - risking instability and additional overhead - to be first to market. Others are likely to move with caution, waiting for a stable WiMAX solution at the risk of losing market share.
The most successful carriers will be those who navigate this period of risk and reward to generate efficient growth with these new wireless
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services. Finding the right WiMAX-ready platform for deployment today can provide a balance of performance and reliability to enable success. WiMAX is a great base upon which to build equipment, so carriers are faced with a strategic decision today: to deploy WiMAX or not to deploy WiMAX.
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