Etm Case Series Case Study of Seagate

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ETM Case Series Case Study of Seagate Dan YU No. 1/08 (September 2008) Division of Engineering & Technology Management (D-ETM) Faculty of Engineering Working Paper Series: ETM 08/01, September 2008 Title: The Case study of Seagate Hard Disk Drive: The pioneer of technological disruptive innovation in Hard Disk Drive industry Author: Dan YU, Division of Engineering and Technology Management, Faculty of Engineering, National University of Singapore 1 Introduction HDD industry is a fast-paced business, there were 2000 disc drive companies in the last 20 years, and now there are about seven or eight. So I recognized years ago that this was a burn-out type of industry. ----Tom Porter1, 2000 As suggested by Tom Porter, many shakeouts happened in the hard disk drive industry because innovative product architectures readily crossed market segment boundaries, while the firm participating in the industry experienced considerable difficulty adopting these architectures, when such boundary-crossing occurred. However, as shown in Figure 1, among the very few firms that managed to survive and grow until today, Seagate is the largest and most profitable one. Seagate was also the only one out of over 50 do-novo startup firms that still survive today. How could Seagate succeed in the very fast-paced industry with significant pressure? Why Seagate but not other startup firms could compete with large incumbents firms and gained advantages? Based on the theoretical lens of disruptive innovation, we carried out a longitudinal case study of Seagate in retrospective. A wide range of publications are available in journals and industrial reports to help us understand the nature of the industry and the strategies and actions of Seagate and its major competitors. The transparency of the Hard Disk Drive industry is significantly higher than most of the other

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