1. Analyze the structure of the personal computer industry over the last 10 years. How have the dynamics of PC industry changed?
2. Historically, what were Apple’s major competitive advantages?
In 2002, personal computers was a $220-billion global industry. From its earliest days in the mid 1970s, the industry had experienced growth, dramatically altering the landscape of competition. Throughout the 1990s, thousands of manufacturers, ranging from Compaq and Dell to no-name cloners, built personal computers around standard building blocks from Microsoft and Intel. By 2002, there were over 400 million PCs installed around the world.
Annual PC unit growth averaged roughly 15% since the mid-1980s. In more mature markets, where 50% of households owned PCs, slowing growth was intensifying competition on price