1

Reinventing Adobe
Decision Sheet

It decided to make a monumental change from software company publisher to a subscription service
model. Adobe halted the sale of packaged software services and commenced to solely provide creative
cloud on monthly subscription model.

5C’S framework

Customer Analysis: CIOs, CMOs, advertisers, video and content creators, web designers, publishers and
digital marketers. Adobe aimed at creating new digital marketing business unit to offer one-stop
solution to its customers. It aspired to broaden the horizon from the desktop domain to cloud
computing which serves as a combination of desktop, mobile and services.

Company Analysis: Initially Adobe strategized to create and commercialize computer languages to
translate digital text and images into printed page. The products offered were PostScript, Photoshop,
LiveCycle, Adobe Illustrator, Pagemaker, Flash and CS.

Competitors Analysis: Apple, AP, Oracle, IBM

Collaborators and Complementers Analysis: In 2005, Adobe acquired Macromedia for $3.4 billion for
Dreamweaver and flash. Adobe acquired Omniture for $1.8 billion at trading + 24% premium in 2009 to
leverage the streamline creation and delivery of applications and content.

Context Analysis: The customer preferences are changing from PC to laptops, tabs, mobile et al. The
content created and managed is changing and increment is expected in the data consumption and faster
server. The old model was not remunerative and creative cloud has greater growth potential.