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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 Gates Windows package and Apples 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 Porters 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 Porters 5 Forces SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry BARRIERS TO ENTRY Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale
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