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Rolltronics Case Study

4769 words - 19 pages

Executive SummaryThe computer industry is one of the most competitive and highly progressive market segments in the electronics industry on a global scale. This primarily due to the fact that computer technology and its applications are interlinked with the telecommunications, networking and other dependant industries. The IT industry is known to be a trend setter when it comes to product development, cost effective manufacturing and marketing techniques adopted to penetrate the market or hold the market share. It is the view of some analysts that the PC market is on a decline and going towards to an end in the industry life cycle. But it should be noted that a life cycle can undergo another S-curve because of an innovation in the industry or product. With the introduction of innovative products in the PC industry with competitive styles and prices, the industry can experience a new growth. Increasing use of nanotechnology, introduction of notebooks and thin-client servers has lead to replacement of traditional desktop computers. The IT industry always undergoes technological changes and with business discontinuities, several changes take place. Many factors will lead to the initiation of business discontinuities.This report addresses the strategic issues that a small IT company that it would face with the introduction of the US $15 PC by Rolltronics. The various implications due to this introduction are highlighted. Following technology discontinuities, there are various threats and opportunities that arise and these are detailed as well. Ultimately the strategies implemented to defend against the new changes are analyzed. It is vital for companies to take the right step in the event of changes that are to take place in the industry.1.0 IntroductionThe IT industry is a very huge industry which includes companies that research & design, manufacture, sell and support any type of computer product. The industry includes both the software and hardware with many players dominating markets and others fighting to have a piece of the market share. The pioneers and manufacturers are constantly under immense pressure to improve technology by bringing in innovative products in order to meet the changing taste and preference of existing as well as prospective consumers. So companies will bring into the market innovative ideas and concepts to beef up its product range to meet the changes.As of now such a change is undergoing dramatically in the PC industry with new products and services coming in. The common practice in the past has been to improve speed and performance of the PC to increase sales and profits. The more faster and sophisticated PCs were made; the more easier it was to sell them by highlighting its new features and performance specifications. But this is not the case today. Speed is not more the norm in selling PCs anymore but it is the new design, smaller size, less sound emitting ones that attract customers. VIA, for example, has...

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