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Managerial economics case: “BEGINNING AND END OF NETBOOK”

Managerial economics case: “BEGINNING AND END OF NETBOOK”. Maria Alvarez Wallace Hsieh Quentin Lestra Alfred Liao. INTRODUCTION. “Get ready for the next stage in the personal computer revolution: ultrathin and dirt cheap”. NETBOOK - CHARACTERISTICS. TARGET MARKET. NETBOOKS. ADVANTAGES.

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Managerial economics case: “BEGINNING AND END OF NETBOOK”

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  1. Managerial economics case:“BEGINNING AND END OF NETBOOK” Maria Alvarez Wallace Hsieh Quentin Lestra Alfred Liao

  2. INTRODUCTION “Get ready for the next stage in the personal computer revolution: ultrathin and dirt cheap”

  3. NETBOOK - CHARACTERISTICS

  4. TARGET MARKET

  5. NETBOOKS ADVANTAGES DISADVANTAGES

  6. MARKET BEGINNING - 2007

  7. MARKET EVOLUTION - 2008

  8. MARKET EVOLUTION - 2009

  9. What is the price of Netbook?

  10. What is the price of Notebook?

  11. What is the size of Netbook?

  12. Which one made higher sales?

  13. MARKET EVOLUTION - 2010

  14. APPLE • “despite netbooks’ popularity, nobody really wanted a netbook per se”. • they wanted full-fledged laptops that were very portable, or they wanted cheap machines that allowed them to easily surf the Web, use email and do other light computing tasks. • Rather than building a single netbook that fit both these audiences poorly, Apple built two machines that were, each in its own way, much better than any netbook ever

  15. MARKET EVOLUTION 2011

  16. APPLE MacBook Air iPad

  17. What is the market share of Netbook?

  18. Tablet V.S Netbook II

  19. Tablet V.S Netbook III • Substitute effect: • Demand for Netbooks decreased

  20. MARKET END - 2013 The last remaining manufacturers, Asus and Acer, confirmed that the netbook is officially dead

  21. ACER V.S ASUS MAIN PLAYERS IN THE NETBOOK INDUSTRY

  22. ACER V.S ASUS OOK

  23. ACER V.S ASUS Q3 of 2008 OOK

  24. ACER V.S ASUS OOK • In 2009, the netbook market grew 110% to 34 million pcs, aspire one from Acer got 40% of it, and EEEPC from Asus got 30%, but the multiple choices strategy attributed to a lot of raw material stock couldn’t be sold out, Asus was almost bankrupted by it’s proud – EEEPC.

  25. Question • In Oct. of 2007, Asus launched the first netbook – EEEPC 701, the price was USD 199/pc; at that time, the price of notebook started from USD 522. • Do you consider this introduction price for EEEPC 701 was too low? Was this a good pricing strategy?

  26. thank you!

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