The Changing Smartphone Industry Marketing Essay

The Changing Smartphone Industry Marketing Essay Research in Motion (RIM) is a Canadian wireless device company, best known as the developer of the BlackBerry smart phones. The company, in its early years, was known for its enterprise-focus, rapid product innovation and its commitment to security. Its latest smart phone offering in October, 2010 was a significant failure. Overall, it lost 5% market share in the US smart phone market during the period between October, 2010 and January, 2011. Its latest tablet offering, named the Playbook, announced right after Apples first tablet, iPad1, is yet to be launched, while Apple is already selling tens of thousands of units of its second tablet, iPad2. And more recently, RIM decided that its new tablet, the Playbook, will support applications created by its competitor, Google. Given this background, we analyzed the industry, RIMs strategy, its product and processes and their alignment with strategy. In that light, we propose that the firm do the following: a) Support the Android Application Platform on its smart phones too (not just the tablet), while setting new rules in the Blackberry Application Store to incentivize developers further. b) Focus on enterprise-based product offerings via strategic acquisitions that allow complementary product offerings to establish high switching costs and product-bundling opportunities. c) Forge new partnerships with unique content providers, telecom companies and cloud firms to keep the firm unique and differentiated while maintaining its strategic continuity. Mobile Handset Industry Market Dynamics The global mobile handset industry is one of the fastest growing sub-industries in wireless sector. This industry was valued at approximately $133bn in 2009, a decrease of 6.7% over 2008, largely owing to the weakness in the global economy. However, as the global economy recovered, this industry saw huge shipment growth announcements from vendors in 2010. Based on industry forecasts  [1]  , this industry is expected to ship 1.4 billion handsets in 2011, up 19.2% from 2009 levels and is forecasted to grow with a CAGR  [2]  of 7.8% during the period 2009-14 to reach 1.7 billion by 2014 (refer : Appendix Figure 1). This growth is largely driven by the high smart-phone growth rates, declining smart-phone prices, increased adoption of 3G technology and the high subsidies given by vendors. Product Segmentation The global handset market consists of two product segments Feature phones and Smart-phones. à ¢Ã¢â€š ¬Ã‚ ¢ Feature phones (or mobile phones) are used for basic mobile communications such as voice, text messaging and data transfers, over a standard GSM mobile telecom network. à ¢Ã¢â€š ¬Ã‚ ¢ Smart-phones are handheld devices, offering advanced capabilities in addition to those provided by a feature phone such as e-mail, social networking or Internet access. Based on market research  [3]  data, we anticipate that during the period 2009-14, the Feature phone segment will decline at a CAGR of -15.5%, while the Smartphone segment will grow at a CAGR of 37.8%. The tremendous growth in the Smartphone market is primarily due to booming consumer demand and the recent industry trend of convergence between hardware, software and services. As consumers increasingly prefer technologies that help them to stay in touch with family, friends and their workplace while they are on the move, the demand for smart devices which are content-rich and support features such as e-mail and social networking applications (apps) will also increase. Market Drivers Most of the growth in mobile handset industry has been fuelled by developing countries. Apart from this, the increasing Smartphone usage is fuelling mobile handset market growth. Another major driver for the handset industry is the huge growth in mobile broadband revenues and subscriptions. Mobile broadband adoption is increasing due to the strong growth of Smart-phones, connected laptops and tablets, coupled with the rollout of high speed networks. Current Trends in Smartphone Industry Shift to Applications Apple, RIM and Google have transformed the Smartphone market into a software based environment, transferring value from hardware to software and content. In 2010 Apple dominated the Smartphone app market, offering over 225,000 apps (refer: Appendix- Figure 2). Its strict control over approval of apps has allowed it to maintain quality. Apple has already sold more than 150 apps from which it generated $2.4bn in revenues. Nearly 5bn apps were downloaded from its App Stores. While RIM offers 10,000 apps, Symbian offered only a mere 6,118. Android on the other hand offered 140,000 apps to its users to take up second position in the apps market. The Android Marketplace does not have the same kind of restrictions as Apple, and while this allows for a certain amount more freedom for both developers and users, the quality and compatibility of apps cannot be guaranteed in the same way. Video Communications Smartphones and other mobile devices (e.g. tablets) are transforming the communication industry, resulting in exponential growth in mobile data traffic. Based on an estimate from Cisco, nearly 66% of the mobile data traffic will be for video consumption by 2014 (refer: Appendix Figure 4). Mobile video is expected to grow at a CAGR of 131% between 2009 and 2014. Emerging Markets new growth engines Many handset manufacturers are turning to emerging markets to drive growth against the backdrop of the financial crisis in mature markets. In Asia, India and China are considered the fastest growing markets in the world for handsets. Compared to mature markets such as North America which had only a 2.5% share of global net subscriber additions in 2010, Asia-Pacific takes a much more significant share, accounting for 68.4% of total subscribers added. Low cost manufacturers affecting industry dynamics Inspired by the success of established players such as Samsung, many smaller handset vendors are entering the market to take advantage of the low entry barriers. Local handset manufacturers such as ZTE and Huawei in China and Taiwan and Micromax in India are challenging the established players, driving down prices and profits. These local companies have their own research and development divisions and design their own phones. The Value Chain Smartphone Industry The current value-chain of the smart phone industry is highly operator-centric; the network operators have a high degree of control over the device manufacturers they collaborate with, the technology operators they employ, and the content delivery entities with which they align (see Appendix Figure 3). Smartphones and intense competition in the mobile handset industry have only emphazised this trend. A snap-shot of the key players in this value chain: à ¢Ã¢â€š ¬Ã‚ ¢ Network operator: Serves as an intermediary for delivery of content and services. Examples: Rogers, Bell, Mobilicity. à ¢Ã¢â€š ¬Ã‚ ¢ Technology enabler: Provides backend technology required for delivering content. These include providing platforms and apps. Act as a mediator between operators and content publishers. Examples: Apple, Google, RIM. à ¢Ã¢â€š ¬Ã‚ ¢ Content Provider: Publish content from various sources or develop original content. Examples: iOS, Yahoo, Google. à ¢Ã¢â€š ¬Ã‚ ¢ Smartphone manufacturers: Manufacture handsets and other related devices. Examples: RIM, Apple, Samsung. However, these boundaries are blurring and there are no longer any demarcations of roles, with each actor stepping into the others domain. For instance, Apple and RIM are device manufacturers, technology enablers and also content publishers. Similarly, Google is a technology enabler and content provider. As roles increasingly overlap, the result could be a radical change in the value-chain and revenue sharing models. In the current business model, the operator (e.g. Rogers) receives 60-80% of data revenues while technology-enabled receives 10-20%, the content aggregator receives 10-15% while the remaining 5-10% is shared with the content owners as shown in Appendix (Appendix figure 5). Research in Motion Based in Waterloo, Ontario, Research in Motion (RIM) is the most widely recognized Canadian technology success story. RIM has perfected the BlackBerry solution a mobile solution that combines device, wireless data and voice access, a network operating centre and an operating system (OS) into a vertically integrated single offering and now considered the de facto standard for enterprise mobile solutions. Beyond the enterprise, RIM has been making inroads in the higherà ¢Ã¢â€š ¬Ã‚ volume consumer market, most notably with the successful launch of the BlackBerry Pearl and Curve. RIM has developed the BlackBerry platform with the needs of both end-users and IT managers in mind. End users look for small device sizes, longer battery life, and ease of use (i.e., intuitive user experience, alwaysà ¢Ã¢â€š ¬Ã‚ on connectivity, and low latency). On the other hand, IT managers look for security, reliability, compatibility, manageability, low cost of ownership, and integration with existing corporate applications. The BlackBerry platform provides IT managers with centralized management and provisioning capabilities, giving them full control over all aspects of the platform, including applications and configuration (e.g. mandatory use of a password to gain access to the handset, overà ¢Ã¢â€š ¬Ã‚ theà ¢Ã¢â€š ¬Ã‚ air locking and erasing of the data on devices, and the capability to disable unwanted features such as Bluetooth or cameras). All told, this has made RIM one of the most trusted providers of data communications. RIM has been extremely successful in monetizing its enterprise email subscriber base. RIM has positioned its BlackBerry as a carrier-friendly platform that enables content/services to be delivered by the operators. Time will tell if this positioning leads to any long lasting preferred vendor status at the carriers because every OEM understands how critical a flexible business model, where carriers share in the revenues/ profits, is to keep them involved. Core Competencies of RIM Highly encrypted and secure email system RIM has a very strong RD division RIM provides the capability for third party companies to develop and provide software applications that run on the RIM hand held devices and they do that by supplying the application Programming Interface Strategic Analysis of RIM The current strategy of RIM focuses primarily on the Enterprise market with a smaller footprint in the consumer market though low cost smart-phones. The company is also targeting both enterprises as well as consumer market for its upcoming tablet Playbook. The advantages as well as disadvantages of RIMs current strategy are mentioned below- Strengths in current strategy RIM has a significant focus on enterprise market which offers a number of advantages to RIM. The enterprise Smartphone market is growing rapidly and it is expected that further growth will be driven by convergence of fixed and mobile telecommunication. Understanding this future technological trend, RIM introduced the BlackBerry Mobile Voice System (MVS) as a voice convergence solution which converts desktop phones/cellular phones to Blackberry devices. With MVS and the PBX integration, Blackberry devices are now equipped with all the features of an enterprise desktop phone (5à ¢Ã¢â€š ¬Ã‚ digit calling, call forwarding, visual call management etc.). This strategy helped to increase the penetration of RIM blackberry devices in enterprises. Another advantage for RIM is its strong relationships with many independent software vendors which provide RIM many enterprise applications beyond email. For instance, RIM enabled SAP applications to run on the BlackBerry platform. This software incorporating SAP support represents a key difference for RIM customers and will enable customers to access SAP applications from BlackBerry applications such as the address book, inbox and calendar. The current strategy also focuses on the non-enterprise consumer segment. While Apple and Nokia are delivering applications and content (that operators could also be delivering), RIM has positioned the BlackBerry as a carrier friendly platform that on the one hand drives ARPU (average revenue per user) for the carriers through its BlackBerry email (and pays RIM between $3à ¢Ã¢â€š ¬Ã‚ $5 per subscriber per month) and on the other, provides a high performing platform that helps operators further monetize the consumer opportunity. By optimizing hardware, software and network services in a vertically integrated offering, RIM BlackBerry platform offers the carriers demonstrable advantages in spectrum efficiency, battery life and latency. Also, RIMs platform is significantly more efficient than competing platforms for email and browsing. This efficiency stems from higher compression rates achieved with the BlackBerry platform. Higher compression reduces download times (lower costs to carriers) and ultimately provides a better experience for users (lower latency, longer battery life and better connection stability). RIM offers its consumer email through its BIS (BlackBerry Internet Service). The BIS provides pushà ¢Ã¢â€š ¬Ã‚ based email as well as attachment viewing and Web browsing with the same optimized wireless efficiency as that found in the enterprise offering. Weaknesses in current strategy In the consumer market, Apple is the market leader with its user-friendly interface and application offerings. One of the weaknesses of RIM in this market is the lack of applications offered by its Blackberry App Store. The Blackberry App Store is an online retail store where consumers can download certain apps that are targeted at increasing productivity (spreadsheet managers, note-taking applications, social network connectivity, etc) or providing recreation (another aspect of social network connectivity, games, etc).   Blackberry apps have been an in-house closed platform operation until now, i.e. RIM and only RIM has been developing these apps for download, and the platform on which these apps are built is closed to external developers. In contrast, the app store for the explosively popular iPhone is open for developers from anywhere in the world to build apps for the general public to download. As a result, iPhone apps number around the 350,000 mark, while the Blackberry app s tore has approximately 7000 apps. These apps often form a key differentiator for the layperson looking to invest in a smartphone. As a result, RIM is poised to be edged further out of the market, unless they can take a quantum leap with their app offerings. In our recommendations section, we examine the prospect of a partnership that RIM can forge to rival Apples app store. Another weakness in RIMs current strategy is the delay in its entry in handheld tablet computing market through its upcoming tablet -Playbook. The company has announced the launch of this tablet in mid 2010. However, the launch of the device has been delayed until mid 2011 following a number of issues in manufacturing, unavailability of touchscreen displays due to absence of any long term contract with manufacturers. The company has also spend considerable amount of time in application development which could have been offered after the launch of the product through the Blackberry App Store. (For more details: refer Appendix Figure 6) Competitive Landscape Apple with its twin offerings of the iPhone and the iPad, along with the Apple App Store compete directly with RIM on all fronts. Google with its Android O/S (operable on multiple handset makers devices) is another (and rapidly growing) player in this landscape, with their open source platform that allows developers to write Apps that users can download, much like Apples model. In order to perform a competitive analysis, we further divided the market into two categories, that of Enterprise (corporate) users and that of non-Enterprise (consumer) users. Competitive Analysis in Enterprise Market As mentioned earlier, RIM took advantage of an early head-start in marketing their devices to large MNCs, many of whom now have deep, entrenched relationships with RIM. This was due in part to a first mover advantage, and also due to the enhanced security that RIM offered for email sent to its devices. The easy integration with existing email systems made the Blackberry phone the device of choice for a majority of corporations looking to equip their staff with mobile email units. The cost of switching from RIM for Enterprise users is essentially that of the legacy systems they have invested in (handsets, servers, trained personnel) and contractual commitments. With Apple beginning to offer enhanced security and a push towards productive applications for the corporate workforce, several younger corporations are either starting their staff with iPhones (and iPads) or looking to make the switch from their existing RIM contracts. Under the circumstances, there is an urgent need for RIM to offer additional value to keep these customers anchored, while also remaining a relevant option for new enterprise customers looking to decide for a mobile email-phone provider. RIM needs to follow the concept of Strategic Intent  [4]  and structure of Ambidextrous Organizations  [5]  to be competitive with other players in Smartphone industry. Competitive Analysis in Non-Enterprise Market This segment of users includes both the casual consumer as well as the professional consumer. While the former looks at a plethora of criteria for selecting their handsets and tablets, the latter is focused on devices and phone plans that offer enhanced professional productivity minus the baggage (like firewalls, disabled applications, etc) that accompanies enterprise-provided devices. For both sub-segments, two key decision-making criteria are the processing power of the devices, and the choice (as well as usefulness) of the applications available for download. In this regard, as stated before, RIMs BlackBerry and Playbook are at a disadvantage because they are coupled with the ill-performing, sparsely populated shelves of the BlackBerry App Store. In comparison, the iPhone and iPad, both very competent devices in their own right, are backed by Apples App Store and iTunes websites, the latter offering a large selection of media downloads, such as songs and movies. (For comparative analysis with various manufacturers: refer Appendix Figure 7) For RIM to succeed in this segment, it is key for them to compete directly with Apple on their availability and choice of Apps for download. RIM: Strategic Options Based on our analysis of RIM and current trends in smart-phone industry, we see the following options for RIM: Leverage Android App Platform and Set New Rules in BlackBerry App World Deepen Enterprise Product Range Strong Marketing in BRIC Nations Forge Tactical Partnerships Assessment of RIMs Strategic Options Option 1: Leverage Android App Platform and Set New Rules in BlackBerry App World RIMs App Store strategy must be to increase incentives for its rapidly-dwindling Blackberry App -developer community by offering them higher pay-offs. Additionally, it must monetize a pre-approved Android App store on its phones, just as it did on its tablets. If it can open the Playbook to Android, then it should also open up the BlackBerry phones to Android. Advantages of Option 1 If RIM is leveraging Android App Platform for its Blackberry Smartphones, then it will allow the company to increase its available application base from 10,000 to a close to 150,000 (Appendix: Figure 2). This will make the blackberry phones more appealing to Android buyers (i.e. phones based on Android Operating System). Another advantage of this approach is that the sales of Android applications through Blackberry App world will ensure a guaranteed cash flow for RIM coming from application sales. Additionally, this option will free up internal company resources currently involved in the development of Blackberry applications and help the company to concentrate on the companys core competency build high-quality smart phones and tablets that run on cutting-edge software. This option will also increase consistency between the PlayBook and BlackBerry smart-phones. Disadvantages of Option 1 While there are many benefits of this approach, there are few concerns as well in this direction. First of all, the shift to Googles Android applications for Blackberry smart-phones will further increase the market power of Google. This will make RIM vulnerable to Googles business decisions such as introducing a significant charge for offering Android Apps through Blackberry App world. Another source of disadvantage is related to the security of Blackberry smart-phones. Currently, these phones have applications offered by RIM which are tested thoroughly for interoperability and security. The Android based applications might compromise the security of Blackberry smart-phones due to their lower security standards. Option 2: Deepen Enterprise Product Range Via Strategic Acquisitions One of the biggest barriers to enter the enterprise market segment is the relationships that a firm possesses with enterprises and their corporate clients. If RIM is to retain and expand its enterprise client base- both in the short-term and longer time horizons it needs to expand its offering via tactical and strategic acquisitions. Our suggestion is to do so by acquiring and integrating an enterprise video communication company such as Polycom which is a global leader in Enterprise Video communications, and shaping it around RIMs existing offering via integration and bundling. To beat the Innovators Dilemma that the firm is entrenched in, it has to go after acquisitions that are aligned with its high-level strategy and within the same space, those that can be integrated with the company in a short time-span. Advantages of Option 2 There are a number of advantages of pursuing the acquisition of an enterprise video communication firm such as Polycom. First of all, this option provides quick access to technology and creates a high switching cost for enterprises due to deeper penetration of RIM in enterprise video which forms an important part of enterprise communications. It also creates a huge opportunity to cross-sell complementary product offerings to the existing and non-existing customers. Additionally, RIM can leverage various Polycom offerings such as telepresence  [6]  in its upcoming playbook. Apart from non-enterprise users, RIM should offer its Playbook initially to the existing Polycom customers. This will help the company to see adoption by Early Adopters. Once the Polycom customers like the product, the RIM will be able to Cross the Chasm  [7]  and reach the Pragmatists. (refer: Appendix- Figure 8) The acquisition of Polycom can also create an opportunity to offer video content and generate revenue through live video streaming on Blackberry/Playbook. Based on our financial analysis, we also saw that Polycoms current valuation provides an opportunity for RIM to capture value and to create value through cost and revenue synergies. (refer: Appendix-Figure 9, 10) Disadvantages of Option 2 One of the possible disadvantages with this option is related to the risk involved in any acquisition- cultural and management clashes -which can hamper the growth prospects of RIM. The acquisition will involve approval from regulatory bodies which will require major efforts from RIMs management. There is a possibility that competitors of RIM could also provide a counter bid to an acquisition (e.g. Polycom) and make it difficult for RIM to acquire the firm. Option 3: Strong Marketing in Emerging Markets According on the smart-phone industry forecast  [8]  , Asia-Pacific market will be the largest smart-phone market during 2009-2014, recording a CAGR of 30% in that period. As a result, an option for RIM is to gain a huge market share in emerging markets through strong marketing efforts. Advantages of Option 3 If RIM can capture a strong market share in Emerging Markets, then it will allow the company to increase its revenue many-folds. Another advantage of this approach is the competitive advantage RIM will have over Apple since Apple does not have a strong customer base in the emerging markets due to high price of iPhone. RIM on the other hand, offers a variety of smart-phones which satisfies the need of price sensitive users as well as business users. Additionally, the marketing costs are far less in emerging markets as compared to North America and Europe. Disadvantages of Option 3 First of all, the shift to emerging markets will expose RIM to competitive pressure from local handset manufacturers such as Huawei whose generic strategy is cost leadership. Another source of disadvantage is related to the security of Blackberry smart-phones. The secure email facility offered by RIM is encrypted and there has been security concern in many countries regarding the encrypted nature of these mails which can become a method of communication of for terrorists and criminal organizations. Option 4: Forge Tactical Partnerships Just like RIM has large partners like Microsoft in the enterprise space, it should strive to aggressively partner with other large companies that create content, mobile networks and cloud platforms. For example, it can forge ties with Amazon to get access to valuable content and services like its new cloud player; it can tie-up with gaming companies to create exclusive gaming on its tablets and blackberries, that appeal to its user base games that would appeal to its enterprise-oriented clients. Additionally, it must use exclusive contracts with mobile network companies, when appropriate in order to maintain its exclusivity and security. Advantages of Option 4 Tie-ups with large partners would be a game-changer, and would set RIM a notch above its competition and allow it access to unique content providers. Additionally, it will also provide quick access to cutting-edge technologies to RIM without diverting its focus from its core competencies. Disadvantages of Option 4 One possible disadvantage is that this option exposes RIM to the risk of exposing its intellectual property to partners. As a result, the company might lose its core competencies due to imitation by partners. Future Recommendations for RIM After analyzing the firms core competencies, its current product portfolio and resources which are unique and inimitable, future options we recommend that the firm should return its focus on its original capabilities within the enterprise markets and corporate customers. The high-level strategy for RIM should be to: speed up product development, enhance security and function to appeal better to enterprise/corporate customers and increase its product range through strategic acquisitions and partnerships. RIM possesses a critical mass in its relationships with enterprise segment/corporate clients and the best lever to protect that is enhance its product offering, security and functionalities, and align them to its existing product portfolio and quicken product development. This should be done after the market has been tested enough through small, rapid experiments. In a fast-changing smart-phone market (Figure 6), where the firm virtually had highest market share once, the best bet for the company is to slightly change its strategic position by making new trade-offs and make speedier product iterations, to remain differentiated. More specifically, we recommend the following three key steps to implement the strategy for RIM on a short and long term: 1) Leverage Android App Platform and Set New Rules in BlackBerry App World 2) Deepen Enterprise Product Range via Strategic Acquisitions 3) Forge Tactical Partnerships Additionally, we analyzed what our strategy would look like in the growing emerging market segments, and we believe that the above strategy of rapid product development, broader product offerings and unique partnerships with content providers/networks would be applicable to those markets as well, where RIMs strategy should maintain exclusivity and security and remain enterprise-oriented. We do not see aggressive marketing in emerging markets (option 3) to be a promising option for RIM going forward. In conclusion, there is still a significant enterprise/corporate market that demands high-quality, sophisticated and secure products. RIM, with its strong commitment to security, loyal user base and time-tested partnerships should deepen its focus on this customer base and remain unique and differentiated. Appendix Figure1. Global mobile handset shipments (m), 2009-14 Year 2009 2010 2011 2012 2013 2014 CAGR Unit Shipments(m)  [9]   1234 1373 1485 1602 1697 1796 7.80% Growth% 11.3% 8.2% 7.9% 5.9% 5.8% Figure2. Smartphone Apps Market Platform Symbian RIM Android Apple iOS Number of Applications  [10]   6118 10000 140000 225000 Figure3. The Value Chain Smartphone Industry Figure4. Market Share: Video Communication Source: Cisco Figure5. Revenue sharing model Source: Business Insights Figure6. RIM SWOT Analysis Strengths Weaknesses Strong market presence in the enterprise segment is driven by its flagship BlackBerry device. A weak content strategy coupled with a poor ecosystem is impacting on the companys competitiveness. Robust profits continue to shield the company from competitive threats. RIM derives a substantial 63.1% of its revenues from North America. Concentration of revenues from a single region could expose the company to considerable risk. Opportunities Threats The company is targeting the youth segments in emerging markets by offering social networking and multimedia featur

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THE CHANGING POLITICAL-MILITARY ENVIRONMENT: SOUTH ASIA The security environment in South Asia has remained relatively un-settled since the Indian and Pakistani nuclear tests of May 1998. The Indian government’s efforts to publicly emphasize the challenges China posed in the weeks leading up to those tests—after more than a decade of mostly sotto voce complaints—served to rupture the or-dinarily glacial process of normalizing Sino-Indian relations. This process always possessed a certain fragility in that the gradually de-creasing tensions along the Sino-Indian border did not automatically translate into increased trust between Beijing and New Delhi. Even as both sides sought to derive tactical advantages from the confi-dence- building measures they had negotiated since 1993—for ex-ample, the drawdown of forces along the utterly inhospitable LAC in the Himalayas—each ended up pursuing larger grand strategies that effectively undercut the other’s interests. Beijing, for example, per-sisted in covertly assisting the nuclear and missile programs of India’s local competitor, Pakistan, while New Delhi sought in re-sponse to develop an intermediate-range ballistic missile whose comparative utility lay primarily in targeting China. The repeated identification of China as a threat to Indian interests by both Bharatiya Janata Party (BJP) leaders and other influential Indian elites in the first half of 1998 not only underscored the fragile nature of the Sino-Indian rapprochement but also ruptured the carefully maintained faà §ade of improving relations between the two coun-204 The United States and Asia tries.1 When this public finger pointing ultimately gave way to India’s resumption of nuclear testing on May 11, 1998 (an event ac-companied by the Indian prime minister’s explicit claim that those tests were driven by the hostile actions of India’s northern neighbor over the years), security competition in South Asia—which usually appears, at least in popular perceptions, as merely a bilateral affair between India and Pakistan—finally revealed itself as the â€Å"regional strategic triangle†2 it has always been. This appendix analyzes Indian and Pakistani attitudes toward China in the context of the triangular security competition in South Asia. Taking the 1998 nuclear tests as its point of departure, it assesses how China figures in the grand strategies of the two principal states in the Indian subcontinent and identifies the principal regional geopolitical contingencies for which the United States should pre-pare over the next decade. Finally, it briefly analyzes the kinds of opportunities the region offers to the USAF as it engages, even as it prepares to hedge against, a rising China. NUCLEAR TESTING AND THE TRIANGULAR SECURITY COMPETITION IN SOUTH ASIA Impact of the Nuclear Tests on Sino-Indian Relations Although Pakistan was directly affected by the Indian nuclear tests, these tests engaged Chinese security interests as well. To begin with, India’s decision to resume testing made manifest New Delhi’s re-sentment

Democrats vs. Republicans Essay

Every American citizen has the right to vote. In the United States, you get to choose the next president and its congressional party. On Guam, you vote for the Governor, the Lieutenant Governor, and the senators. Most young adults do not really know the difference of political parties or care to know the difference between who is who. Many people still do not really truly understand the difference of being a republican or democrat. It is much more than the difference between the Democrat donkey logo and the Republican elephant logo. The biggest distinction of the two parties is that Republicans are known as conservatives and the Democrats are known as the liberals (Democrat vs. Republican). All though they have some views and policies Democrats and Republicans both agree on, there are many differences that distinguish the two political parties such as taxes, government spending, social programs and issues. Anti-slavery expansion activists and modernizers founded the Republican Party in 1854 (Diamond & Gunther, 5). It rose to prominence with the election of Abraham Lincoln, the first Republican president. The party presided over the American Civil War and Reconstruction and was harried by internal factions and scandals towards the end of the 19th century (Diamond & Gunther, 5). Today, the Republican Party supports a pro-business platform, with further foundations in economic libertarianism and a brand of social conservatism increasingly based on the viewpoints of the Religious Right (â€Å"Our Party†). Since the division of the Republican Party in the election of 1912, the Democratic Party has consistently positioned itself to the left of the Republican Party in economic as well as social matters (Han & Han, 32). The economically left-leaning activist philosophy of Franklin D. Roosevelt, which has strongly influenced American liberalism, has shaped much of the party’s economic agenda since 1932 (Han & Han, 30). Roosevelt’s New Deal coalition usually controlled the national government until 1964 (Han & Han, 30). Republicans believe that each person is responsible for his or her own place in society (â€Å"Republican National Committee| GOP†). Government should enable each person the ability to secure the benefits of society for themselves, their families and for those who are unable to care for themselves. The Republican philosophy is based on limiting the intervention of government as a catalyst of individual prosperity (â€Å"Democrats vs. Republicans†). Government should only intervene in specific cases where society cannot effectively act at the individual level. With the core belief that individual destiny should be in the individual’s hands, governmental power and resources should be kept close to the people, through their state and community leaders, and not centralized in distant federal government agencies (Diamond & Gunther, 7). Democrats believe it is the responsibility of government to care for all individuals, even if it means giving up some individual rights and/or subordinating enterprise and initiative (â€Å"Democrats & Republicans†). Democrat Party administrations have pushed for the centralization of power in Washington D.C., with only secondary consideration for the rights of both individuals and communities. Democrats have favored federal-level interventions that replace community-based solutions to community problems. These tactics have created several federal regulations and controls that are often in the hands of unelected bureaucrats, causing a severe erosion of local authority. The first issue where both parties disagree is about taxes. The Democrats have three key points when it comes to taxes. They want to cut taxes for every working family, but not millionaires, cut taxes for middle class, not the wealthy and cut taxes for working families, not the richest 1% (Barton).  President Obama and Democrats in Congress cut taxes for every working family, putting more money in the pockets of Americans who need it most (Barton). A typical family has saved $3,600 during his first term. Now he’s fighting to stop middle class families and those aspiring to join the middle class from seeing their taxes go up and to extend key tax relief for working families and those paying for college, while asking the wealthiest and corporations to pay their fair share (Barton). That is why Democrats will always vigorously oppose the type of tax reform supported by Mitt Romney, which independent experts have found would require raising taxes on typical families with children by at least $2,000 if it were paid for (â€Å"Mitt Romney on Tax Reform†). At the same time, Mitt Romney’s plan would cut taxes for those making over $3 million by an average of $250,000 and would create incentives that will lead to hundreds of thousands of jobs going overseas at the expense of American workers. Democrats support cutting taxes for middle class Americans (Barton). Today, for most families, the federal tax burden is the lowest it has been in twenty years (Barton). Republican views on taxes include the belief that tax reduction is important, but must be done the right way (â€Å"Republican National Committee | GOP†). The party believes that budget surpluses have caused Americans to be overtaxed-a condition that is not only threatening their financial prosperity, but is also hindering, and possibly even reversing, growth to the country’s economy (â€Å"Democrats vs Republican†). They also want to limit the top marginal rate, believing it punishes those who have worked hard and invested well. Republicans also wish to make the Research and Development tax credit permanent (Barton). These three tax reforms combined, Republicans believe, will encourage and promote entrepreneurship (â€Å"Republican National Committee†). They also believe in encouraging saving and investments by implementing a tax credit for investments. However, despite their support for lowering taxes, Republicans do believe that tax cuts or tax incentives without any balancing spending cuts are detrimental to the economy (Barton). Another difference in political parties is the way both parties feel the government should be spending money. Republicans believe government should tax only to raise money for its essential functions (Diamond & Gunther, 23).  That is, Republicans believe government should spend money only to enforce contracts, maintain basic infrastructure and national security, and protect citizens against criminals (â€Å"Republican National Committee | GOP†). The literature of the House Republican Conference goes on to illuminate the role of the government and how tax policies affect individuals: The money the government spends does not belong to the government; it belongs to the taxpayers who earned it (Democrats vs. Republicans). Republicans believe Americans deserve to keep more of their own money to save and invest for the future, and low tax policies help drive a strong and healthy economy (â€Å"Republican National Committee | GOP†). Tax relief is the Republican route to growing the economy (Barton). A Republican government would reduce taxes for businesses to allow businesses to grow and thus hire more employees (Barton). Republicans also seek to limit income taxes for individuals so that people can hold on to more disposable income, which they can then spend, save or invest (Barton). Like the Republicans, Democrats believe the government should subsidize vital services that keep cities, states and the country running: infrastructure such as road and bridge maintenance and repairs for schools (Barton). Democrats also call for tax cuts for the middle class. But who benefits most under each platform? The conventional wisdom is that corporations and the wealthy will benefit more with a Republican tax policy while small businesses and middle-class households will benefit from a Democratic tax policy (â€Å"Our Party†). The next topic is about social issues such as abortion and same-sex marriages. Democrats are generally for abortion (Our Party). The party strongly and unequivocally supports Roe v. Wade and the investment in stem cell and other medical research. They want to pursue embryonic stem cell research. Democrats support right to choose even if mother cannot pay. They strongly believe that choice is a fundamental and constitutional right. Democrats support the right of all families to have equal respect, responsibilities, and protections under the law. The party supports marriage equality and support the movement to secure equal treatment under law for same-sex couples. They also support the freedom of churches and religious  entities to decide how to administer marriage as a religious sacrament without government interference. The Democratic Party opposes discriminatory federal and state constitutional amendments and other attempts to deny equal protection of the laws to committed same-sex couples who seek the same respect and responsibilities as other married couples. Republicans support the human life amendment. They strongly oppose abortion funding. Republicans promote adoption & abstinence, not abortion clinic referrals. They ban abortion with Constitutional amendment and suggest alternatives like adoption, instead of punitive action. The Republican Party platform is clear. Republicans believe marriage is the legal union of one man and one woman (â€Å"Republican National Committee | GOP†). Americans want to see changes in our tax code, changes in our schools, and changes in our health care system, but there is no public clamor to change the definition of marriage as being between one man and one woman. In fact, polls consistently show that 2 out of every 3 Americans oppose recognizing same-sex marriage. Both political parties have a lot of different opinions. It is up to the voter to decide which party they feel has similar beliefs. Democrats and Republicans have very strong beliefs and only some now a days try to follow the ways for when the original parties were in session. In conclusion, the difference between a liberal and a conservative can no longer be defined within the constraints of the Constitution of the United States. In America today, the answer to this question can only be answered in view of our nation’s socialist political structure. A liberal is defined as a liberal socialist and a conservative is defined as a conservative socialist. Works Cited Barton, Stephanie. â€Å"Parties For Taxes: Republicans Vs. Democrats.† _Investopedia_. Web. 15 Oct. 2014. Blake, Aaron. â€Å"Democrats Are Winning on Social Issues – Politically, at Least.† _Washington Post_. The Washington Post. Web. 20 Oct. 2014. Diamond, Larry Jay., and Richard Gunther. _Political Parties and Democracy_. Baltimore: Johns Hopkins UP, 2001. Print. Han, Lori Cox., and Tomislav Han. _Handbook to American Democracy_. New York: Facts On File, 2012. Print. McLaughlin, Seth. â€Å"Political Parties Struggle with Gay Marriage Issue.† _Washington Times_. The Washington Times Web. 16 Oct. 2014. â€Å"Mitt Romney on Tax Reform.† _Mitt Romney on Tax Reform_. Web. 19 Oct. 2014. â€Å"Our Party.† _Democrats.org_. Web. 19 Oct. 2014. â€Å"Republican National Committee | GOP.† _GOP_. Web. 19 Oct. 2014.

The Movement Of Labor Off Shore From The United States Essay

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