The opening of the 21st century arrived with an economic limp. Dragging behind it a spirit squeezed by imploded exuberance, the economy led some to give up on change and growth. Companies cut new programs, pulled out of or shut down corporate ventures, retrenched and played it safe. Yet, simmering barely beneath the surface we can see powerful drivers of change and growth still at work, building pressure for the next upswing in the megacycles of economy.
We never had a “New Economy”; we had an evolving innovation economy. Surviving and prospering, calls for a sound grasp of the drivers of change. The fact that there has never been a “golden company” that consistently beat the market is due to differing principles under which capital markets and corporations operates. Markets, built on the assumption of “discontinuity” enable, manage and control the process of creative destruction by encouraging new entrants that produce superior results and value by “remorselessly” replacing weak performers that consume wealth. This process is has always been at the heart of capitalism, but the pace of change is accelerating to the extent that we have entered what Peter Drucker calls the Age of Discontinuity.
Organizations in today’s hypercompetitive world face the paradoxical challenges of “dualism”, that is, functioning efficiently today while innovating effectively for tomorrow. The purpose of this case study is to analyze, understand and prepare strategies to overcome the impacts and implications of introduction of the $15 PC by Rolltronics towards my Computer firm named Company X’ by using the Theory of Disruptive Technology and Innovative Management.
2.0 Personal Computer Industry Overview
The market for laptop computers has distinguished itself as one of the fastest growing segments of the computer industry. Throughout its growth and development, this market, like many others, has changed a great deal as a result of customer demands. In an effort to cater to these demands, companies like Dell and HP look to market trends to aid in the development of new products. In most recent stages, the laptop market has been specifically influenced by a number of trends. Simply, customers are becoming more educated about their purchases. As a result of these consumer educations, buyers want increased customization of PCs. The growing amount of knowledge is creating the ability for buyers to distinguish their own personal need in a computer from a standardized product.
The laptop market is growing faster than desktop computers. This trend is being driven by global integration and advances in telecommunication technology. Customers are living more mobile, communicative lives, and their computers must have similar characteristics that make such activity not only possible, but also efficient and easy. When it comes specifically to the product, customers are demanding increased portability and durability from laptop computers. Driven by this new mobile lifestyle, customers want a product that will be easy to move including making it smaller, lighter and perhaps sturdier than other models. In addition to demanding more from physical features, customers need greater performance capabilities. As a result, companies must work hard to provide them with the best technology available.
3.0 The $15 PC Industry Analysis
A revolution is about to take place in computing. A Menlo Park, California company called Rolltronics is well along on perfecting the technology required to essentially print a whole computer on a thin plastic. Based on the industry trend mentioned in the topic above, let us analyze the industry if this computer is successfully marketed and where Company X and other computer firms’ stands.
Christensen, C.2000, The Innovator’s Dilemma, Harper Business, New York.
Christensen, C.M 1997, The Innovator’s Dilemma: when new technologies cause great firms to fail, Harvard Business School Press, Cambridge MA.
Craig S. Fleisher ; Babette E. Bensoussan, (2003). Strategic and Competitive Analysis, Pearson Education Inc.
Day, G.S ; Schoemaker, P.J.H. (2000), Avoiding the pitfalls of emerging technologies; New York: John Wiley ; Sons
Day, G.S ; Schoemaker, P.J.H. ; Gunther,R.E (Eds).(2000); Wharton on managing emerging technologies; New York: John Wiley ; Sons.
Eriksen, L., Peterson, J. ; Watford, K., (1998): On Recreating The Technology Management Infrastructure; Oxford UK: Elsevier Science Ltd.
Herther, Nancy K. (2003), Today’s Computer Industry: Facing Major Challenges; The Electronic Library, 262-265.
Schumpeter, J 1911/1968; The Theory of Economics Development. English Translation 1968; Cambridge: Harvard University Press.
Steven Klepper and Keneth L. Simons, 1997, “Technological Extinction of Industrial Firms: An Inquiry into Their Nature and Causes,” Industrial and Corporate Change, 6(2).
Tushman, M & Anderson, P. (1986); Technological Discontinuities and Organizational Environments; Administrative Science Quarterly, 31:439-465.
(www.bnet.com), Accessed 30th May 2005;
(www.csc.com), Accessed 17th June 2005; 2015- Computer Science Corporation
(www.equationlab.com/mtp/quantumblog/archives/technology/),Accessed, June 20 2005.
(www.nikebiz.com), Accessed: May 20, 2005.
(http://www.sfgate.com/), Accessed: June 10 2005.
(www.shkaminski.com/Classes/Readings/Kotter.htm); Accessed: 18th June2005.
www.quickmba.com; Accessed 20th June 2005;
(www.rolltronics.com); Accessed 15th June 2005.