• Adding linkable graphics
• Analyzing the article through two separate management models

Hughes Electronics Background:                                
The Hughes Electronics Corporation is a long standing, and established company created by Howard Hughes.  The company  was originally created in 1932, as Hughes Aircraft Co.  During World War II, the purchase of TWA established Hughes as a success in the commercial airlines market.   Later, the company began to use satellite technology to further technology in their aircraft, and eventually purchased a very important part of the radio spectrum for their satellites.  Hughes was purchased by GM in 1985 for $5.2 billion, and the opportunities for advancement as an electronics company advanced.  As the cold war pronounced a need for manufacturers, Hughes emerged as a supplier of Military aircraft.  Howard Hughes died in 1976, leaving the Hughes corporation as a giant in Military Defense supply. 

Hughes moves to media:                                                                                   
With the cold war over, the Hughes corp. began to look for new ventures to branch their technology.  In 1988, an engineer named Eddy Hartenstein developed the DirecTV satellite system.  DirecTV can provide customers, who traditionally could not subscribe to cable with hundreds of channels beamed directly into 20" dish.  Through Hughes' 1984 purchase of the satellite spectrum space, DirecTV became a reality. DirecTV became available to the public in 1994, and by 2000 had reached nearly 80 million subscribers

DirecTV and switching costs:

DirecTV originally targeted the consumer that was not able to receive cable service, especially in rural areas.  In 1998, DirecTV was servicing 4.5 million customers, 70% of whom were unable to subscribe to cable TV.  The Service originally required an $800 instillation cost which made switching to DirecTV difficult for many consumers.  However, Instillation cost began to fall, and now is comparable to that of cable television.  DirecTV provides a clear digital signal, and many options not available on cable TV. The switching cost from cable to DirecTV was initially a high one, thus the original market was those consumers who did not have a choice between cable and satellite.  But today, the switching costs have become extremely minimal. The quality and features of DirecTV vastly outweigh the switching costs which include a small instillation fee, and the inconvenience of switching TV carriers. In 1994, DirecTV subscribers exceeded cable subscribers, and it is predicted that by the year 2005, cable subscribers will decrease by nearly 5 million, while Satellite subscribers will increase to a total of over 90 million in 2005.

Hughes adapted to Miles and Snow's Adaptive Strategies:

The Hughes Corporation settled into a Defender strategy as the major supplier of Military Defense Aircraft.  The company had a defined objective, and looked to supply the government and commercial airline markets with most of it's aircraft.  However, the end of the cold war brought a realization that defense technology is not needed as much as it was in times of major international conflict.  The Hughes corp. made the realization that the traditional defender role was one which could be modified, especially with new advances in technology and media.  Hughes had everything at hand, and the ability to make its mark as a media technology revolutionary.  At this point, the Hughes corp switched from the role of defender to analyzer.  The 1990's brought the company incredible success in the entrepreneurial venture of DirecTV.  The Hughes Corp. looks towards the future through developing more new technology such as DirecPC, a wireless internet service.  As the information age brings us continued change, the trends show that Hughes and other classic defenders will be forced to change to keep up with the world.