Questions
1. GSM was an already established form of digital communication; Qualcomm introduced CDMA late in the wireless game. Many users had already become loyal to GSM.
The European Union backed GSM as the standard for digital communication and since Europe led the world in wireless phone technology. European companies such as Ericsson and Nokia were major suppliers of GSM it benefited them.
The economic extent is that GSM had economies of scale, since more GSM handsets were sold than the CDMA handsets the GSM handsets were actually less expensive than CDMA. Breaking into this market with equipment that is more expensive is very difficult.
The economic and political factors are not independent. One feeds off of the other. The European Union backed GSM, therefore major companies in Europe used GSM, which means there was more exposure for the product, and this in turn produces sales.
2. The case does not say whether Qualcomm did its homework with regard to the......
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