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.