Posts Tagged ‘industry’

Companies and Countries: Diverging Interests? (2)


Seagate also supports a substantial supplier base in the United States of companies producing high value components for disk drives. The issue of employment is very sensitive to national governments. Employment in the U.S. computer hardware industry has declined steadily since the mid-1980s, while employment in U.S. overseas affiliates has grown rapidly.

Companies and Countries: Diverging Interests?


While American companies retained their leadership in the computer industry, the United States was losing both production share and employment in the computer industry to Asia. Hardware production in the United States declined as a share of global production between 1985 and 1990 by 22%.

Competition in Computers among Companies (3)


Leading in technology and controlling key standards enables a company to dominate the market and enjoy high margins that can be plowed back into further innovation. Growth further fuels the innovation cycle by ensuring there will be investors eager to underwrite expansion, talented employees willing to give their all, and a growing body of users […]

Competition in Computers among Companies (2)


The shift from mainframes to PCs was so dramatic that IBM’s stock plummeted from a high of more than $180 in the late 1980s to as low as $43 in 1993, and DEC’s stock price dropped from more than $190 in 1987 to less than $40. In 1993, IBM reported losses of $7.5 billion, the […]

Competition in Computers among Companies


The mainframe industry had been dominated by ten giants, including IBM, Burroughs, Honeywell, and Control Data in the United States, and ICL, Groupe Bull, and Nixdorf in Europe, which controlled 65% of the market in 1975 at the height of the central computing era, with another forty companies controlling 32%.

Plan versus Market Explanations in Computer Industry (6)


Equally important is a country’s managerial culture, which may or may not be well suited to the fast-changing, highly competitive computer industry. A country will ultimately succeed in computers to the extent that its domestic companies succeed or it is able to attract investment from successful foreign multinationals. Path Dependencies. This refers to the development […]

Plan versus Market Explanations in Computer Industry (5)


Our approach explains differences in industrial performance between companies and countries primarily in terms of: The Structure of the Global Computer Production System. Both the structure and the evolution of that system are important. This includes competition, alliances, and market transactions among companies at different levels of the production chain, from silicon to systems to […]

Plan versus Market Explanations in Computer Industry (4)


How, then, do we reconcile these two apparently different points of view? The answer lies not in ideological arguments over free markets versus government planning. Rather, it lies in the details. Industrial policies have been effective in the computer industry when they move in concert with market forces, and when they are aimed at developing […]

Plan versus Market Explanations in Computer Industry (3)


Our view is that both market and plan perspectives offer important insights into the success of the East Asian countries in computers, but neither is sufficient. Much of the East Asian success has been the result of the actions of companies and entrepreneurs acting in a highly competitive environment with limited government intervention.

Plan versus Market Explanations in Computer Industry (2)


In the neoclassical view, a country’s success in a particular industry such as computers results from the actions of the private sector—companies—rather than from the targeted industrial policy of governments.

Plan versus Market Explanations in Computer Industry


In comparing the different strategies of these countries in developing their computer industries, we seek to shed light on a central question in development economics: how can companies and countries establish and maintain a viable competitive position in a highly globalized, technologically dynamic industry?

Company and Computer Industry


The rapid globalization of the computer industry and the complex relationship between company and country interests raises a number of questions for both companies and countries trying to compete in computers. These can be summed up as follows: