Click the Study Aids tab at the bottom of the book to access your Study Aids (usually practice quizzes and flash cards).
Study Pass is our latest digital product that lets you take notes, highlight important sections of the text using different colors, create "tags" or labels to filter your notes and highlights, and print so you can study offline. Study Pass also includes interactive study aids, such as flash cards and quizzes.
Highlighting and Taking Notes:
If you've purchased the All Access Pass or Study Pass, in the online reader, click and drag your mouse to highlight text. When you do a small button appears – simply click on it! From there, you can select a highlight color, add notes, add tags, or any combination.
If you've purchased the All Access Pass, you can print each chapter by clicking on the Downloads tab. If you have Study Pass, click on the print icon within Study View to print out your notes and highlighted sections.
To search, use the text box at the bottom of the book. Click a search result to be taken to that chapter or section of the book (note you may need to scroll down to get to the result).
View Full Student FAQs
14.4 The Influence of Interaction Effects on Investment Decisions
New investments can interact positively or negatively with existing assets of the firm. For example, when Amazon started offering electronic books (Kindle) and electronic audio (Audible), there was an obvious and natural synergy with existing content and their core competencies. These investments improved Amazon’s strong performance because they complemented existing company assets. When Amazon began adding tools and a variety of other home improvement products and then started selling groceries in certain markets and branched out into cloud computing, there were concerns related to synergy. Part of the answer relates to Amazon’s core competencies. Amazon is good at online retailing and it is very good at maintaining a very scalable and robust server and processing infrastructure. They had core competencies that were transferable to those businesses.
There are numerous examples where an investment lacked synergy with existing assets. Many believed that eBay’s acquisition of Skype was ill conceived because there did not appear to be any positive synergies between the businesses.http://dealbook.blogs.nytimes.com/2010/03/15/skype-poised-for-a-big-initial-stock-offering/ The businesses did not appear to mesh and the executives at both eBay and Skype were constantly fighting. eBay eventually sold Skype at what was considered a very modest amount. In some ways, eBay’s competitive advantage was undermined because of the relationship. The interaction effects between eBay’s assets and Skype’s assets were negative.