MAN 320F Lecture Notes - Lecture 17: Music Download, Desktop Publishing, Apple I
Document Summary
World is flat and blue ocean strategy . 1996 apple was on the verge of bankruptcy. Traditional strength in desktop publishing and education. Proprietary system (supports higher margins and creates barriers to entry) Plug & play ease of use. Let"s look at the dynamics in the pc industry. Let"s begin by examining the buyers and see how this has changed over the past 25 years. Clearly customer sophistication has changed dramatically over the past 25 years. 1990 individual managers buying a few pcs at a time. A large firm may purchase 50-60,000 pcs per year. 8% reduction per year from 2000 to 2013. You can assemble a pc with a screwdriver. Customers who are price-sensitive will buy it from us. Lots of pcs to choose from they all do the same thing. The more substitutes the greater the price pressure. The only suppliers that earn the money: intel and microsoft.
