Question

Topic: Strategy

We Are Facing Business Discontinuity!

Posted by Anonymous on 6/11/2005 at 1:14 AM ET 150 Points
We are a PC small manufacturing company struggling in the high velocity IT industry. We hear that the $19 PC that use the new technology such as printing in plastic is commercially producing in 5 years time by a US company. By that time, the whole industry will be changed...

Just want to know more and can prepare for it.

1. What is the implementations or impact when the $19 PC into the market? Can I have some information or examples such as the DVD--VCD--VHS revolution.
2. What kind of oppotunities we can use in that change?
3. What kind of strategies we can use?

Thanks!
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RESPONSES

  • Posted by wnelson on 6/11/2005 at 10:54 AM Accepted
    Welcome, Newcomer. While student questions are invited, our goal here is to help students in learning versus doing their homework or exam questions. You need to do the work. As such, with this question, I will point you in directions, but you will need to think through the implications and draw the conclusions. You will have to put together the strategies. If you would like to share the strategies and strengths and weaknesses of those strategies for our consideration and further thoughts, we enjoy insightful efforts from students and are very glad to put forward our humble opinions.

    An area of study for this project is in the disposible cell phone market. In 1999, a very low cost cellphone was developed to facilitate limited needs. An article on this is:

    https://inventors.about.com/library/weekly/aa022801a.htm

    An example of its use is in this blog:

    https://www.travel-asia-forum.com/forum/Disposable_cell_phone_205086.html


    For your problem, consider the following:

    1) This should give you an idea of the technology, advantages, and weaknesses.
    2) What are the needs of PC customers? Segment them into the traditional categories: Business and home. Look at the product types: Server, notebook, desktop. How can a $19 PC meet the needs better? How does it NOT meet the needs?
    3) Given a $19 PC with the strengths and weakness in the technology as you visualized above, what other segments can you define? What other NEW needs can come about as a result of this technology
    4) What impact does this have to the PC market? Around 200M units are sold each year. Does the $19 PC expand the unit sales? Does is cannibalize some of the market? For instance, will people no longer buy a notebook computer? What happens to to dollar value of the market as a result?
    5) So with this hypothetical computer company, what are the implications? What does the company have to do in order to remain viable? Think in terms of the ramifications of a) Doing nothing - just keep making PCs like they always have, b) Adopting the new technlogy, c) Using the present company capabilities and going into a new market, d) going out of business. What would be the actions and strategies for each of these? Which makes the most sense given the company's capabilities and limitations?

    This should get you thinking. Do some research - plenty of information is available on the web and in libraries. It's the weekend! There's plenty of time to find good information!

    Good luck!

    Wayde
  • Posted by wnelson on 6/18/2005 at 10:49 AM Member
    I suggest you go to your university library and ask for the research librarian. The web isn't the only place to find information. In fact it's one of the more unreliable places. btw, to find information on the disposable phone, I used Yahoo! and put in the words "disposable phone" and read through the hits until I found those two - this research isn't too sophisticated!

    Here's a website tutotial on how to use the internet to find information. Invest some time. I don't believe you will make it through your professional life let alone school if you don't know how to find information on the internet.

    https://www.lib.berkeley.edu/TeachingLib/Guides/Internet/FindInfo.html

    Both links in my first submittal worked. You may have to "copy and paste" the link into your browser. I did this and it worked also.

    Good luck! Time for you to dig in and do the assignment!

    Wayde
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