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Issues in Competitive Advantage: The Computer Industry - Case Study Example

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The author of the paper titled "Issues in Competitive Advantage: The Computer Industry" examines and analyzes the major challenges that Apple faces which include competition from free software, its sales and distribution channels, and customer service. …
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Issues in Competitive Advantage: The Computer Industry
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Download file to see previous pages With the advent of Information Technology, computers have become all-pervasive. The computers are becoming like a commodity, with households aspiring for more than just computers. Business processes are being converted to computerization, and the developing nations are rapidly embracing IT. All these factors, coupled with the trend of upgrading that affluent consumers are adopting, make the Industry highly attractive.

The industry is not severely influenced by either customers or suppliers, and also the barriers to entry too are rather high. However, the presence of several heavyweight competitors, makes it important for organizations to streamline their processes towards product innovation and to back their selling efforts with creative marketing strategies.
Apple is one of the leading players in the Computer and Entertainment Media Industry, though its market share has been usurped by competitors like Dell. Apple has been following a generic strategy of differentiation, though a Value chain analysis reveals that its product differentiation is accompanied by propriety legalities. Its sales and distribution channels too are lagging in market responsiveness.

The Computer Industry is a highly competitive industry with several players vying for market share with each other. The industry includes hardware developers, software vendors, and vendors of technologies that deliver digital entertainment and media. The Computer Industry had grown at a rate of 10. 5% in 2006. (Business Wire, 2005) The major players in the industry are Dell Inc., Apple Inc., IBM, Sun Micro Systems Inc., Gateway Inc., Palm Inc., Hewlett-Packard-Compaq. (Reuters, 2007).

The industry is highly price-sensitive and organizations operate in an environment of low margins. (The PC Guide, 2001). The industry has slowly expanded from equipment and software suppliers to include video-gaming and digitized music providers. ...Download file to see next pagesRead More
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