The 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.
The IT industry is a very huge industry which includes companies that research & design, manufacture, sell and support any type...