Manufacturing Systems and Technological Change: The U.S. Personal Computer Industry

The 1980s have been a period of profound change in the terms of competition and the structure of manufacturing systems in the personal computer industry, with the proliferation of low-cost clone computers and associated attempts to reduce costs in manufacturing.

Abstract

AbstractThe 1980s have been a period of profound change in the terms of competition and the structure of manufacturing systems in the personal computer industry. As the ability to manufacture computers has diffused widely through the global economy, price competition has intensified and profit margins have narrowed on most mature computer technologies. U.S. personal computer firms are now seeking to establish new sources of durable competitive advantage. The most visible aspect of change has been the proliferation of low-cost clone computers and associated attempts to reduce costs in manufacturing. In addition, however, personal computer firms are attempting to accelerate product innovation and to enhance the return on investments in new technology. Final assembly of personal computers takes place in each of the major market areas of North America, Asia, and Europe. Component technology is sourced from a global network of suppliers, and there is little evidence of intensified locational clustering of asse...