Adobe Inc, Case Study Solved Questions

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Q 1 (a) How was postscript establishing de facto standard? Established Postscript as a de facto standard because: 1. Make Post script an open standard (not open source) 2. Spark up and bring revolution in desktop publishing. 3. Strategic alliance with Apple (Printer), Aldus (Application), and 4. Linotype (Fonts) “Postscript-based desktop publishing system” 5. Encouraged third-party applications to be developed 6. Provide technical support by good documentation of programming (“The Red book”) 7. Introduced High quality and professional looking fonts and their customization. 8. Developed in-house applications 9. Adobe Illustrator software introduced in march 1987(first high quality illustrator) 10. Invested in developing a postscript font library 11. Investing 16% of sales in font development – Strong commitment 12. Made it easy for printer manufacturers to incorporate Postscript 13. Created a boilerplate controller design – fast product development 14. Targeted early adopters 15. Graphic artists helped establish a foothold 16. Introduce photo editing softwares in adobe Photoshop. (b) How did earn money from postscript, despite its being open standard? Making money from Open standards 1. Licensing fees and upgrades 2. Because it is an open standard not open source software. 3. $210M in Postscript royalty in 1998 4. Develop application software that utilizes Postscript as complementary product! 5. Even though it is open standard, knowing the inner workings of Postscript, Adobe can innovate faster to earn. 6. Print publishing (Exhibit 4) was 35% of sales in 1999 7. Sales of fonts in postscript format Was very successful at establishing Postscript as standard and extracting value from it – their share price increased 49% a year through 1995 8. Successful in

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