Hello Jeremy Dodd,
You make an interesting discussion about the escalation of commitment facing the TVision program by T-Mobile. You brought up excellent points and views about the de-escalation strategy. After experiencing the challenges in the new market, TVision decided to integrate with other companies such as Philo TV, Google, and YouTube TV. However, apart from the competitive industry standards, financial problems contributed to T-Mobile’s crisis. I think that you left out the bankruptcy that affected MobiTV. The company provided the software in which TVision provided their streaming services. In March, MobiTV reported bankruptcy, and TVision is offering to provide $15.5 billion for bailout money (Balderston, 2021). T-Mobile is providing its TVision services in Philo or YouTube TV. The financial challenges influenced the merging and partnership with other big organizations. I agree with you that TVision took a productive de-escalation strategy by merging with other organizations to continue providing its services. The lessons picked show that integration with other companies can promote investments and profitability.
Reference
Balderston, M. (2021, March). T-Mobile Plans to End TVision Services . Tvtech. https://www.tvtechnology.com/news/t-mobile-plans-to-end-tvision-services
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Post 2
Hi Shane,
I like how you approached and discussed the Toys R us company that has dominated the toy market since 1948. You took an interesting approach in evaluating the escalation of commitment in the toy company. The evolution in e-commerce indeed made Toys R us less competitive as the market went digital. Besides, the financial crisis forced the company into bankruptcy, leading to escalation of commitment. E-commerce, online retailers like Amazon, price wars, poor leadership, and debt all influenced the company's failure. I agree that the fall of Toys R us was due to the inability to embrace the new retail landscape and poor inventory management (Beitelspacher, 2018). Additionally, the company undercut the toys’ price, underinvested in its workforce and businesses, thus contributing to their downfall (Unglesbee, 2018). You observed that the de-escalation programs failed since the company lacked enough investments and organizational structure to compete in E-commerce. I agree with you that companies should be aware of the evolving market trends and technology.
References
Beitelspacher, L. (2018, March). I'm a Toys R Us Kid, But I've Grown Up! Babson College. https://www.babson.edu/academics/executive-education/babson-insight/strategy-and-innovation/toys-r-us-kid-but-grown-up/#
Unglesbee, B. (2018, June 26). Inside the 20-year Decline of Toys R Us . Retail Dive. https://www.retaildive.com/news/inside-the-20-year-decline-of-toys-r-us/526364/
