Stories this month include “Who's the Winner in the Tug-of-War between 'Walled Garden' and 'Open Plain' Strategies?” and “Can't Run, Can't Hide: New Rules of Engagement for Crisis Management”
Plus: Podcasts on the Real Estate and Auto Industries with Profs Joseph Gyourko, Todd Sinai and John Paul Macduffie
This past month some of the timely stories from Knowledge@Wharton
Who's the Winner in the Tug-of-War between 'Walled Garden' and 'Open Plain' Strategies?
In August, less than three months after the introduction of Apple's iPhone, a New Jersey teen announced that he had "hacked" into the mobile-communications device. The hacker was clearly expressing the frustration that many consumers feel towards Apple for adopting a "walled garden" -- as opposed to an "open architecture" or "open plain" -- corporate strategy. While the walled garden approach often restricts consumers' ability to modify devices or marry them with other firms' products and services, the open architecture approach has its drawbacks as well. Wharton faculty and others look at the advantages and disadvantages -- for both consumers and companies -- of these two strategies.
http://knowledge.wharton.upenn.edu/article/1804.cfm
Can't Run, Can't Hide: New Rules of Engagement for Crisis Management
The corporate apologies are piling up. Mattel CEO Robert Eckert apologized on September 12 for lead paint found in millions of the company's toys. TD Ameritrade CEO Joe Moglia apologized on September 14 for a database breach. Apple CEO Steve Jobs apologized on September 6 for cutting the price of the high-end iPhone. Dell executives apologized in August for delayed deliveries of certain models. JetBlue apologized in February for canceling flights and leaving passengers stranded during an ice storm. While executives moved quickly to stem damage to their companies' reputations, it takes more than speed to manage a crisis. As Wharton experts and others point out, the rules governing crisis management have changed.
http://knowledge.wharton.upenn.edu/article/1807.cfm
In the Push for Global Gender Equality, Is Rhetoric Beating Out Reality?
Because the U.N. has an aggressive agenda for gender equity, you might think it would ensure that women play a prominent role in its high-profile peacekeeping arena. According to Rachael Mayanja, an assistant U.N. secretary-general and special advisor on gender issues and advancement of women, you would be wrong. At the 2007 annual conference of the Association for Human Resources Management in International Organizations (AHRMIO), held at Wharton this month, Mayanja noted that none of the U.N.'s 18 peacekeeping missions around the globe is currently directed by a female. Her message: "It's high time HR examines itself and does something to make sure that gender balance becomes a reality."
http://knowledge.wharton.upenn.edu/article/1808.cfm
From Cool to Passé: Identity Signaling and Product Domains
The quest for cool is never-ending. Accountants rev up their Harleys to the dismay of hard-core bikers. Soccer moms trade in minivans for hipper Land Rovers. Yellow rubber wristbands appear instantly, then just as quickly disappear. There is a fine line between cool and not-so-cool -- a topic explored in a new paper, Where Consumers Diverge from Others: Identity Signaling and Product Domains, by Wharton marketing professor Jonah Berger and co-author Chip Heath from Stanford. The researchers look at how consumers use products to signal membership in social groups, but swiftly abandon those same products when the original message is diluted as other groups co-opt the trend.
http://knowledge.wharton.upenn.edu/article/1803.cfm
Are You a Tightwad or a Spendthrift? And What Does This Mean for Retailers?
Men are bigger tightwads than women; younger people are more likely to be spendthrifts than older people; and the more educated a person is, the more likely he or she is to be a tightwad. While "tightwad" and "spendthrift" are not exactly labels that most people would welcome in a discussion of their spending habits, they are valuable as predictors of consumer behavior. Indeed, Scott Rick, a visiting professor at Wharton, and two colleagues recently came up with a scale to determine the extent to which people are tightwads or spendthrifts -- and what the implications are for retailers trying to more accurately target potential buyers in their stores and on their websites.
http://knowledge.wharton.upenn.edu/article/1811.cfm
Can Dell's Turnaround Strategy Keep HP at Bay?
In an interview with Knowledge@Wharton one year ago, Michael Dell declared his support of then-CEO Kevin Rollins, indicated that supply chain efficiencies and direct sales gave the company a competitive edge, and added that his namesake company was making great strides in customer service. What a difference a year makes. Michael Dell took over the reins from Rollins on January 31 and set out to remake the $57 billion Round Rock, Tex., PC manufacturer. The effort comes as the company has lost its worldwide market share lead to Hewlett-Packard and faces competition from other PC manufacturers as well. While experts generally agree that Dell has made progress in some areas, questions about its turnaround remain.
http://knowledge.wharton.upenn.edu/article/1799.cfm
Podcasts
The U.S. Auto Industry: Dangerous Curves Ahead?
Among the U.S. auto industry's many challenges are the ongoing negotiations between General Motors and the United Automobile Workers union aimed at coming up with a new contract to replace the one that expired on September 15; the recent takeover of Chrysler by private equity firm Cerberus Capital Management; and a possible slowdown in consumer spending as a result of fallout from the subprime mortgage crisis. Meanwhile, industry watchers are awaiting the outcome of reported efforts by India's Tata Motors to take over two of financially plagued Ford Motor's luxury brands, Jaguar and Land Rover. Wharton management professor John Paul MacDuffie, co-director of the International Motor Vehicle Program, spoke with Knowledge@Wharton about these and other issues.
http://knowledge.wharton.upenn.edu/article/1810.cfm
Home Truths about the Housing Market
The sub-prime mortgage crisis and the credit crunch that has followed in its aftermath are taking their toll on the housing market. On August 28, the S&P Case-Shiller U.S. National Home Price Index showed that home prices fell 3.2% in the second quarter. According to the National Association of Realtors, the inventory of unsold homes is at a record high. As sales have fallen, many home builders have seen their stock prices drop by more than 60% during the past year. How serious is this situation? Is there light at the end of the tunnel? Joseph Gyourko, director of Wharton's Samuel Zell and Robert Lurie Real Estate Center, and Todd Sinai, a professor of real estate, spoke to Knowledge@Wharton about these questions and more.
http://knowledge.wharton.upenn.edu/article/1802.cfm
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