1. What is the evolution of the industry structure over time and its implication for strategic positioning?
PC buyers can be classified in to home,small- and medium-sized business (SMB),corporate, education, and government. Home consumers represented the biggest segment, accounting for nearly half of the worldwide shipments. Evolution :
Though the first commercial computer (UNIVAC) was released in 1951 the credit of mass marketization of computers should be given to Apple-I computer in 1976. Though it was released targeting common man, majority of the Apple users used it for commercial and educational purpose. Due to inconsistence performance and hardware issues this was not a huge success. Four years later IBM with MS Dos revolutionized the concept of personal computer. Due to its consistence performance, user friendly GUI and more importantly affordable price made IBM pc a huge hit in market. IBM - Open source -- evolution of IBM clones
Too many market players lead to price war, cost leadership
Apple restricted itself to it’s MAC ecosystem, there by following differentiation. Post steve job’s exit from Apple, Sculley tried to move Apple into mainstream – cost leadership. It failed; Amelio proclaimed that Apple would return to its premium-price differentiation. 2. What is nature of sustainable competitive advantage?
CA rests on the notion that cheap labor is ubiquitous and natural resources are not necessary for a good economy.
“Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology either to be included as a part of the product, or to assist making it. ' Information technology has become such a prominent part of...
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