Cisco Purchased Pure Digital, Maker of the Flip Video Recorder

question 9

Multiple Choice

Cisco purchased Pure Digital, maker of the Flip video recorder, but ended up shutting the unit down a little over two years later. The reason for Cisco's failure was:

• A) Envelopment. Smartphone manufacturers and music players began to offer video recording features, enveloping the benefit provided by Pure's gear in their offerings.
• B) Network effects. Late-arriving Cisco could not compete against the dominance of existing, incompatible standards created by early-moving incumbents.
• C) The Osbour Effect. Cisco preannounced a product and no one wanted its current offerings.
• D) Staying power. Consumers weren't convinced a small firm like Cisco could win in the market.