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History Of Apple Computer 2002 And The Pc Industry.

2679 words - 11 pages

1. Analyze the structure of the personal computer industry over the last ten years. How have the dynamics of the PC industry changed?2. Has Steve Jobs solved the "problem"? What should Steve Jobs do today?1.The majority of the general population may think that the PC industry arrived along with Bill Gate's "Windows" package and "Apple's" "I think, therefore iMac" statement, but in reality the modern computer age began in 1971, when Intel built the first microprocessor chip in an attempt to provide more technologically adept "Calculators".No-one could have foreseen the way the PC would influence and become an integral part of our lives. Technology has advanced at unforeseen rate and this couple with the fact that competition has never been higher means that the structure is constantly changing. However I will attempt to outline the Structural changes that have occurred over the past decade making full use of Porter's Five-Forces Framework for Industry analysis.Five-Force Framework for Industry analysis.Michael Porter developed an industry framework model that showed what he supposed the five forces that influenced the "normal" competitor in the Industry. It was originally designed to show the "attractiveness" of an Industry for individual firms in terms of profits, but I feel that it would be ideal to illustrate how the dynamics of the Personal Computer Industry have changed over the last ten years. The general model is shown overleaf.Diagram of Porter's 5 ForcesSUPPLIER POWERSupplier concentrationImportance of volume to supplierDifferentiation of inputsImpact of inputs on cost or differentiationSwitching costs of firms in the industryPresence of substitute inputsThreat of forward integrationCost relative to total purchases in industryBARRIERSTO ENTRYAbsolute cost advantagesProprietary learning curveAccess to inputsGovernment policyEconomies of scaleCapital requirementsBrand identitySwitching costsAccess to distributionExpected retaliationProprietary productsTHREAT OFSUBSTITUTES-Switching costs-Buyer inclination tosubstitute-Price-performancetrade-off of substitutesBUYER POWERBargaining leverageBuyer volumeBuyer informationBrand identityPrice sensitivityThreat of backward integrationProduct differentiationBuyer concentration vs. industrySubstitutes availableBuyers' incentives DEGREE OF RIVALRY-Exit barriers-Industry concentration-Fixed costs/Value added-Industry growth-Intermittent overcapacity-Product differences-Switching costs-Brand identity-Diversity of rivals-Corporate stakesFive-Force Framework for PC Industry.Suppliers.It must be noted that the majority of profits are to be made through the production and development of software while the actual assembly of the computer is less profitable.Switching Costs; Intel and Microsoft have combined their power forming a business agreement where most PCs are now Wintel. Their establishment in these dominating positions is based on their technological advancement. To rival this the normal manufacturer...

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