Discussion

Discussion

 Please, after reading the case study  ( at the link below):1. Post your thoughts pertaining to the following questions: 

A. What competitive dynamics can be expected among firms competing in the industry described in this article? You can describe the dynamics in terms of likelihood of competitive attacks and competitive responses in this industry.  

B. Is being a first mover advantageous in the space communication industry described in the article?

2. Respond to at least one of the post made by your class-mate 

I TECHNOLOGY Bloomberg Businessweek September 21,201

{ entirely. The satellites offer far fewer megabits per dollar than geostationary satellites, making it harder for those systems to pay for themselves, says Inmarsat Chief Technical Officer Peter Hadinger. A geostationary satellite lasts for more than a decade, is constantly in use, and can be targeted at the bus- iest areas of the world. A SpaceX satellite might last only a third of that life span, Hadinger says.

Musk has promised a slender Starlink receiver that’s plugged in, breaking with the clunky dishes of the past that need a specialist to install them. Industry analyst Chris Quilty estimates the cost of the user terminal and antenna at closer to $2,ooo than $t,ooo. “It’s really hard to compete with a bent piece of sheet metal that costs 5o bucks,” he says. “I don’t see a path for them magically breaking cost barriers that no one else has achieved.”

Quilty says he expects Musk to lobby for gov- ernment work to squeeze every revenue line from Starlink. The U.S. military is one of the largest cus- tomers for satellite communications and wants to make use of the new LEO constellations. That’s partly because they offer military users a tactical advantage. Big geostationary satellites now used for battlefield communications are potential sitting ducks: A hostile actor could bring down the entire network by destroying one with a missile. Taking out several satellites in Starlink’s huge constella- tion, by contrast, wouldn’t compromise the system.

The plan one day is to connect the satellites directly with laser beams so data can reach across polar, oceanic, and inhospitable regions. without this it will be hard for Starlink to serve the lucra- tive market for in-flight internet on long-haul planes and shipping communications. It also means SpaceX would need approval for a global array of ground stations to send data around the world. But China, Russia, and other vast territories may well freeze Musk out to antagonize the U.S. and protect their national phone companies.

Asked which competitor he would bet on if pushed, Inmarsat CEO Rupert Pearce says, “The track record would say Starlink, wouldn’t it? You’ve got the muscle of Musk, you’ve got the Silicon Valley mentality, and what they did with SpaceX is incredibly impressive.”

But if Starlink fails, it won’t just burn SpaceX’s own investors. “If Starlink is a deep disappoint- ment,” says industry consultant Tim Farrar, who’s advised investors on other satellite projects, “you could see another downturn in the space invest’ ment cycle.”

-Thomas Pfeiffer and Thomas SeaI

THE BOTTOM LINE lt’s hard to bet against the billionaire founder of Tesla, but space is a perilous battlefield, and the history ot the satellite business is full of failures.

Palantir’s Haters-Gonna- Hate Listing

O The software maker distancing itself, literall and figuratively, from Silicon Valley’s tech se

Almost since Palantir Technologies Inc.’s founding in 2oo3, controversy has followed it. The company, which is named for the all-seeing orb of Sauron in The Lord of the Rings and produces software that helps big organizations make sense of large data- sets, has been accused oferoding privacy even as it’s won praise from the U.S. military. It’s sparred with the media, the American Civil Liberties Union, and activists who’ve complained about its work for President Trump’s Immigration and Customs Enforcement agency.

As it prepares to go public, Palantir has added a new adversary: its former hometown. After Chief Executive Officer Alex l(arp complained about the liberal “monoculture” in the Bay Area, the com- pany announced its relocation from Silicon Valley to Denver-the better to communicate that it doesn’t care about the outcry over its ICE work. In a letter attached to the Securities and Exchange Commission

filing, IGrp all but said the big tech companies are traitorous identity thieves who’ve been willing to do business with the Chinese government while prof- iting by selling users’ personal data. (Co-founder Peter Thiel made a similar claim last year, suggest- ing the FBI investigate coogle for potentially helping Beijing. Google denied the charge.) “Our company was founded in Silicon Valley,” wrote I(arp. “We seem to share fewer and fewer of the technology sector’s values and commitments.”

Earlier this month the CEO, an avid cross-country

V Palantir share price on the secondary markel

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