GMGT 4010 Lecture Notes - Lecture 8: Mainframe Computer, Switching Barriers, Personal Computer

• School: University of Manitoba
• Department: General Management
• Course: GMGT 4010
• Professor: Alok Dua

Document Summary

Answer: improved quality with low cost - compatibility no switching costs due to compatibility. Ibm started selling instead of renting which decreased the switching cost . They moved from differentiator to a cost leader big mistake. They should have come up with new products. Question: what other developments were occurring in the computer industry during 1970s and. Success of a company is the reason of the death mainframe computer was success became the failure. Companies which are very successful in the one product. Not adaptable to the change and are positive about the mainframe computer . Cost structure was a problem it was hard to cut the costs to compete with other competitors no cost advantages. Renting the equipments instead of selling sudden change to selling which did not match the strategy in terms of customer service. Culture usually top-down all the top management were in mainframe 15 years ago they had a mindset of mainframe.