Cisco purchased Pure Digital, maker of the Flip video recorder, but ended up shutting the unit down a little over two years later. The reason for Cisco's failure was:
A) Envelopment. Smartphone manufacturers and music players began to offer video recording features, enveloping the benefit provided by Pure's gear in their offerings.
B) Network effects. Late-arriving Cisco could not compete against the dominance of existing, incompatible standards created by early-moving incumbents.
C) The Osbour Effect. Cisco preannounced a product and no one wanted its current offerings.
D) Staying power. Consumers weren't convinced a small firm like Cisco could win in the market.

Question

Quizplus · Accepted Answer

The primary reason for Cisco's failure with the Flip video recorder was envelopment. As smartphones and music players began incorporating video recording capabilities, the unique selling proposition of the Flip video recorder was significantly diminished, leading to its decline in relevance and eventual shutdown by Cisco.

Cisco Purchased Pure Digital, Maker of the Flip Video Recorder