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January 2003
ARCHIVE
SUMMARY
Loyalty in Organizations, Why Not?
Bidding Strategies for Auctions
NTT DoCoMo: Will 3G Make It?
How a Deflated Exchange Rate Affects Trade Flows
State Aid Cuts Could Be Useful
How Horizontal Portals Can Boost Their Profits
Chupa Chups Vending Machines: A Flavor for Every Taste?

The next time you text a friend with a photo or an audio clip, you might pause to marvel at how far the humble mobile has come since the days of the "brick phone". Today's count of a billion mobile-phone users worldwide would have been unimaginable a decade ago. o­ne of the biggest leaps forward in mobile communications has been the much vaunted 3G (third generation) of wireless technology, with new handsets offering TV and video streaming, high quality audio, interactive gaming, digital imaging, e-mail and web browsing at lightning speeds. IESE researchers have written five cases o­n the evolution of the mobile multimedia concept at NTT DoCoMo, a 3G pioneer.

IESE Insight also has new features o­n loyalty in organizations, the profitability of horizontal portals, contract design in strategic alliances, and other subjects outlined below.

 Business Ethics 
Loyalty in Organizations, Why Not?
Domènec Melé
What is loyalty? Is loyal conduct a romantic, naïve or foolish thing? Or is it, in fact, necessary for human development, for business and even for society as a whole? And if, as some studies suggest, in many businesses and in many countries loyalty has diminished, should we renounce the goal of establishing a climate that favors loyal behavior? IESE Professor Domènec Melé inquires into whether acting with loyalty is valuable and necessary for the individual, for human coexistence, and for the firm, or whether, o­n the contrary, it is a subversive doctrine. This paper was published in the Business Ethics Quarterly (11-1) in 2001.
 Economics 
Bidding Strategies for Auctions
Manel Baucells
These days, all sorts of products are sold at auction, from antiques and livestock to spectrum licenses and mineral exploration rights. This technical note written by IESE Assistant Professor Manel Baucells explores the most common forms of auctions today and reveals strategies for both sellers and buyers, including ways to avoid the winner's curse.
 E-Business 
NTT DoCoMo: Will 3G Make It?
Gaynor Perry, Brian Subirana
In October 2001, NTT DoCoMo became the first operator to launch a high-bandwidth, mobile telephone service, called FOMA (Freedom of Mobile Multimedia Access). Coming at a time when other operators were delaying the launches of their own long-promised 3G networks due to technical difficulties or problems with the business model, NTT DoCoMo's president and CEO, Kiji Tachikawa, was taking a gamble o­n FOMA. Would it be a success? The case study, written by Research Assistant Gaynor Perry and Professor Brian Subirana of IESE, is the latest in a series of five cases o­n the evolution of NTT DoCoMo's mobile multimedia concept.
 Economics 
How a Deflated Exchange Rate Affects Trade Flows
José Manuel Campa
This paper zeroes in o­n Latin America to study the trade flows of eight countries that have experienced an extreme exchange rate crisis in recent years. The results show that, after devaluation, countries tend to trade with the same partners and in the same industries. Yet, exports to industrialized nations appear to rise.
 Economics 
State Aid Cuts Could Be Useful
Jordi Gual
Aggregate targets for state aid reduction in the European Union are important in order to maintain budgetary figures within the limits established by the Stability and Growth Pact and to focus the Commission's efforts o­n the most important cases instead of many small programs. In this book chapter, Professor Jordi Gual of IESE analyzes whether the policy of state aid reduction in the European Union could benefit from an aggregate approach based o­n binding limits o­n the state aid granted by Member States.
 Knowledge and Information 
How Horizontal Portals Can Boost Their Profits
Sandra Sieber, Josep Valor
Horizontal portals, also known as search engines or homepages, are consistently the most visited sites o­n the web. Yet, with a few exceptions like Yahoo! and AOL, overall profitability in the industry remains low. This paper describes how cross-market bundling - strategically combining Internet access, portal and proprietary content - is the best way to generate future profits.
 Marketing 
Chupa Chups Vending Machines: A Flavor for Every Taste?
Gary Andrew Lewis, Francesc Parés, Lluís Renart
The main character of this case study faced an important crossroads in his career: he could either accept a stable international marketing job with a prestigious Catalan drinks company, or he could take the entrepreneurial road and direct the worldwide commercialization of a new lollipop vending machine. The evaluation of the latter job offer, involving international confectionery giant, Chupa Chups, and Discapa, a small manufacturer of vending equipment, provides insight into the world of vending and into the history and strategy of these two companies.
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