The Importance Of Technology And Innovation In The PC Industry

Technology/Innovation

Technology is developing every now and then and so do innovation. It makes the industry competitive. In future, there is a probability of having few computers at home. Rather, people will be using new technology computers which have eyeglasses implanted with retina as the screen.

Capital Requirements

The capital required to enter the industry and compete with the big companies in the computer industry are outrageous. Considering that HP spent 3.9 billion on R&D alone makes a new entrant think twice about entering the PC industry. Launching innovative products, thoughts and implementing new technology is mostly done by the big companies, which only few new entrants can compete.

Industry Profitability

The fact is that PC’s are not the only thing produced by PC industry. Every company that produces PC’s also entered other industries and markets. PC industry is worth billions upon billions of dollars. The PC industry constantly redefines itself and evolves and impacts every other business in the globe because of its relationship with each industry. The PC industry is extremely profitable and competitive.

Porters

In recent years customers are having increasing number of options for personal computer. Smartphones, tablets, and other gadgets like iPod have similar features and capabilities as a personal computer. Because of the accessibility, sleekness, and style of these gadgets, they are becoming very popular making personal computers more and more outdated. To compete with the smartphones and tablets, PC must differentiate itself to regain the market share. Large businesses, schools and governments buy computers in high volumes might have control on price, quality and service. But, companies can influence the customers to buy their products by creating trust in their own brand and by providing value added features. So, the bargaining power of buyers is