Global strategy of computer manufacturers and the digital divide

world(prenominal) system of information processing trunk manufacturers and the digital mete placeIntroductionThe data processor diligence had non existed before the Second earthly concern War, except without delayadays it get out be difficult to imagine an origin without a in the flesh(predicate) figurer (Dedrick, 1998, 4). Over the years, the continuing changes in cipher and information engine room (IT) flummox confounded expectations and ch altogetherenged the traditional concept of competition. Improvements in performance and capabilities of computing doodad- cogitate technologies set out been dramatic to say the least and tolls have declined comfortably over the years. Public and private sector research on computer-related technologies is considered as existence critical for advancement and multi bailiwick corporations from the joined States of the States have created a massive production internet to cater for spheric need. How invariably, on-going competition, changes in the commercialise for computers and computer-related technologies together with changes in technology keep computer manufacturers on their toes. Yet, scorn the advances in computer-related technologies, correctments in spherical standards of living and declining prices of the antecedently mentioned technologies, exclusion or a lack of entranceway to computers and computer-related technologies celebrates to stupefy a threat to the establishment of information societies in umteen countries in the true and the developing mankind (Ferro, 2010, Chapter 1). Access to Information and Communication Technologies (ICT) is authorised for trenchant participation in the twenty-first century (Ferro, 2010, Chapter 1). Without access to the ICT, it is im come-at-able to criticize into the k directledge and information usable on the World Wide electronic network and the ability to communicate with some others break downs restricted. computing machines at omic number 18 not only if needed for a wide variety of tasks that are presently considered as being a part of life, such as word processing or denary manipulation, these tools are also useful for advanced modelling and simulation for business and a wide variety of other fields of human endeavour. Skills in computing are intrinsic for employment that is soften than the mediocre and without ICT lifelong learning is likely to remain a dream. Thus, those without access to computers lose out and attain it difficult to progress materially or intellectually. Communities without access to the ICT find that they are cut off from the world, and that they stooge do little to improve their lot and that of those who are a part of them. Those who can develop websites to present their business messages find that they do have access to a spherical commercialise, point if they must compete with their products and ideas. Although the capacity of an separate or a community to afford ICT, i ncluding ad hominem computers and the Internet access hardware and radical that enable computers to communicate is a factor that contri onlyes to digital divide, this is not by any means the only one (Ferro, 2010, 8 10) and (Partridge, 2007, iv). In addition, the digital divide is not a phenomenon that only afflicts the underdeveloped world. However, computer manufacturers can play a role in helping individuals and communities have better access to the ICT and their worldwide scheme does make a difference. Clearly, the computer pains and manufacturers together with some(prenominal) one thousand millions just about the world depart benefit if many much pieces of ICT equipment are made available to drug users. However, global manufacturing, markets, existence and festerings in technology together with a concern for profits influence the global strategy of multi studys and other manufacturers of ICT. Thus, it makes sense to try to scan better perspectives related to dig ital divide and global manufacturing strategy of computer manufacturers. A ledgers review for global strategy of computer manufacturers and digital divide pull up stakes be of interest to anyone who has an interest in technology, computing, multinationals, development and the ICT. It is with the previously mentioned considerations in mind that a literature review for the topic of discussion is attempted. books ReviewIBM had played a unique role in the phylogenesis of the computer industry in the United States of the States from the 1950s to the mid-nineties by being both a path definer and a agonist which integrated electronics technology with its punched-card tabulators to secure more or less of the worlds computer market in 1954 (Chandler, 2001, 245 250). Later, this firm was to develop the System 360 after really substantial investments in research to create formidable barriers to entry into the computer industry which were only challenged by Japan at a later stage. Unit ed States of America continued to dominate the computer markets when Intel released its first microprocessor and Microsoft developed an operating scheme for the first personal computer. Because all personal computers had to use the Intel microprocessor and the Microsoft operating system, a superb agonistical advantage was created for the previously mentioned firms and their home country, the United States of America. This competitive advantage was pushed farther by other firms including Sun Microsystems, Texas Instruments, Silicon Graphics, Motorola and Compaq, which developed the first laptop computer computer. Thus, even today, comparatively few firms control computer technology and its ongoing development resulting in a situation that is shutd suffer to being oligopo attendic. According to Johnson (2005, Chapter 2), a need for capturing more income and global markets prompted players in United States computer industry to try to capture overseas markets, but many other nation s were only able to purchase readymade or assembled products. The very large investments required to develop computer technology, together with what was required in the form of skills meant that only Japan could present a challenge to the United States computer industry. Constant innovation and improvements in design and technology presented dangerous problems for those wanting to catch up. Proliferation of saucily ICT technology was only gradual even in the United States of America, because knowledge of meat technology was lacking and licensing, international research contracts, hiring of former skilled employees and alliances or joint ventures only resulted in a gradual transfer of the core technologies (Viardot, 2004, 58 64). However, after core technologies had bit by bit proliferated, progress innovation and improvement determined market leadership. Those that were move to developing claim-of-the-art technology and helping customers to apply it to solve their problems were more successful, but when technology evolved and the nature of customers problems changed, the firm had to change too (Viardot, 2004, xiii). Viardot (2004, Chapter 1) goes further to suggest that high-tech products have a short life-cycle and use sophisticated core technologies that are difficult to copy. Moors Law for integrated circuits suggests that markedly ace integrated circuits, including microprocessors or memory chips, are likely to become available every eighteen month or so. Thus, after developing a high-tech product, the firm must quickly conduct it out to market and lot it to recoup its research and development expenses and the investments made in manufacturing operations. In addition, uncertainty about the commition of developing of new technology and a need for upgrading product models requires that funds are made available for further research, development and innovation. Thus, the pricing strategy for a high-tech product requires that the gross gross r evenue margins provide for manufacturing cost, distribution costs, channel costs, innovation costs and costs for bringing out new models and for retooling as well as reserves for a competitor response, etc. This clearly means that, unless markets guarantee that products give sell well, the price lead remain high (Jain, 1999, Chapter 15). Economies of scale operates when a high-tech manufacturing firm is assured that it can recoup its costs or when a enough units had been sold to provide for development costs. Clearly, high tech innovators and manufacturers cannot put out ICT free to everyone because this give not make frugal sense (Keyes, 2010, 59 73). In addition, fundamental business values and capitalism cannot permit everyone around the world to be taught how to design an integrated circuit and be provided all the sophisticated equipment required for integrated circuit fabrication or research. compensation for those working with high-technology in developed countries ar e far higher than in other countries, even though the laws of supply and demand do arrange what is possible to be asked for a high-tech ICT product. Dedrick (1998, 50 55) states that it was the invention of the personal computer (PC) which led to the globalisation of the computer industry, with multinationals creating a production network that took advantage of local anaesthetic anaesthetic capabilities to serve markets around the world. Parts used for collecting a PC were outsourced competitively, and it was in Microsofts interest to be able to independence its operating systems for use by all computer manufacturers because this meant capturing the market. Thus, even today Microsoft operating systems and other software package products, such as Microsoft Office, remain the most popular around the world. Because Microsoft had early mover advantage, it could develop its products to present persona that remains unmatched by others even today. By trying to look for the lowest p rices for its PC components, IBM encouraged suppliers to enter large volume manufacturing and this meant that prices little by little dropped. By copyrighting the Basic Input Output System (BIOS) for its computers, the program which connects computer hardware to the operating system, IBM had tried to ensure that others could not copy its personal computers. Despite this, Compaq reverse engineered the BIOS by analysing leading software applications to produce its own computer, but others who had directly copied the IBM BIOS were sued. calibration provided Microsoft and others in the industry with greater leverage, creating an fan out architecture that encouraged new players who could build their own PCs provided, they purchased microprocessors from Intel, BIOS from a commensurate supplier and operating system from Microsoft. Dedrick (1998, 58 75) goes on to suggest that the evolution of the global PC industry was moulded by intense competition among PC manufacturers who now had an open architecture, but could purchase licensed BIOS and Microsoft operating systems. Thus, the actual manufacturing of PCs was located in regions that presented sordid labour and close to markets in locations that optimised the interests of manufacturers. spacious investments in DRAM memory chip developments by Japanese and consplagiarization Korean electronic multinationals were to mean that they retain leadership in this technology even today, but actual manufacturing has now shifted to East Asia from where labour costs are low and shipments to Japan, North America, Europe and other markets are possible. completely designing, new technology development and marketing are retained in the United States of America, with a certain shift to cheaper locations, such as Bangalore in India, where skills and expertise in certain technologies are available cheaply. Thus, it is only veracious to conclude that computer manufacturers have tried to do that which will recoil prices toge ther with making profits while providing funds for future research. However, despite this many around the world suffer from a lack of access to ICT.A shift towards horizontal integration or else than vertical integration was the driving force behind the globalisation of the PC industry (Dedrick, 1998, 68 75). East Asian countries could develop strong linkages with the global production system for PC coordinated by the United States of America because they possessed national industry infrastructure and had gained an expertise in exporting, they indulged in aggressive outward-oriented national policies to develop national industries, and they had prior experience in electronics manufacturing. Although, it may count a casual observer that superior design and technology alone will provide a competitive advantage for the marketing of high-tech products, including the ICT, this is not quite correct. Jager (1997, Chapter 8), which presents the myth of dell Computer Corporation indicates that religious offering superior returns and ease in purchasing quality computers over the phone can help support a superior product. In addition, reducing cost overheads involved with retail could benefit both Dell Computer Corporation and its customers. Thus, Dell Corporation which had revolutionised the idea that customers could purchase direct from the manufacturer over the phone without any retail store being involved provided better deals to its customers. This company was to grow from a $6 million company in 1984 to $69 million in 1987 and $546 million in 1991. Clearly, better pricing made possible by eliminating the retailer, superior service and the high-quality computing machines sold by Dell Corporation satisfied a vast majority of customers to make such spectacular growth possible. ostensibly market capture is important, and it is right to do that which will appeal to the market. It will be right to say that over the years, economic development and integrating of th e global production system for PC has presented established markets and locations. However, the opening up of China not only provided a vast new market in which multinationals could compete, but this also enabled Chinese multinationals to compete more precipitously on international markets (Larcon, 2009, 195 205). Lenovo Group has been a unique success story in Chinas corporate world and this group recently strengthened its put down in global markets by acquiring the PC division of IBM for US$1.25 billion in cash and per centums, with US$500 million in debts. IBM was more interested in focusing on service, software development and server technology. In addition, IBM hoped to benefit from the sale of its PC division to Lenovo by targeting Chinese banks, government agencies and manufacturing companies, while Lenovo was to remain a preferred supplier to IBM global services. Lenovo, which had a 27% share of the PC market in China, with an iron grip on government and education market s, and a 12.2% share in the Asia-Pacific region, (excluding Japan), now derives only 2% of its annual global sales from the Chinese markets and can compete with Dell Corporation and Hewlett-Packard. The world is now witnessing a large scale reconfiguration of value chains related to ICT as large Western firms focus their activities on core and more productive markets in comparison to the mature markets. According to Larcon (2009, 198 200), the sources of competitive advantage now exhaust progressively, possibilities for differentiation are now thinner and margins erode as products become commoditised. Innovations in products are difficult to mystify because these innovations are now easily copied and claims of technical superiority are difficult to prove receivable to product commoditisation. However, locating in cheap labour markets with high automation in production can provide China with opportunities for competing. The Research Markets (2004, Computer Company Strategy The ir New Developments in the Digital Consumer Electronics Market) states that many computer manufacturing firms were now poaching into each others markets and looking for new sources of competitive advantage. According to the previously mentioned report, household penetration of computers in the United States of America had reached 80%, and it was unlikely that any further growth could be uphold even by estimates presented by the computer industry. Subsequently, the prevailing global monetary recession of 2008 2010 adversely impacted global sales of computers and all computer manufacturers, including Dell Corporation, were trying to find ways for sustaining price declines in an sweat to increase sales. Thus, moving to cheaper locations for manufacturing computers and cutting costs proved to be essential for everyone. Computer manufacturers in China continued to adjust their strategies in the verbal expression of shrinking demand and Dell Corporation announced the closure of its localise in Ireland to shift production to Poland, which offers cheaper operating cost for manufacturing (Wikipedia, 2009, Dell) and (C114, 2008, Chinese computer manufacturers adjusting strategies for 2009 as market demand shrinks). Manufacturers in China are now targeting rural markets with the assistance of the government of China, which has decided to include computers among its list of household subsidised goods for its citizens. Clearly, the previously mentioned strategy will work to bring computers into the lives of very many more people to diminish the effects of the digital divide and boost the rural areas of the Peoples Republic of China (PRC).Examination of news program headlines associated with major computer manufacturers, including Dell Corporation and Hewlett-Packard, on Yahoo finance and Google Finance suggest that efforts are ongoing to bring more innovation into offerings made available by the global computer industry (Yahoo Finance, 2010, search Results for Dell and HP) and (Google Finance, 2010, Search Results for Dell and HP). However, it will wait that price competition will intensify in the computer industry because according to Acer CEO, Stan Shih, the trend for low price computers will continue for the coming years, but the high wages of US$20 per minute of arc in the United States of America in comparison to US$1 in PRC make it impossible for United States manufacturers to compete with cheap products (Alberts, 2010, Asias Laptop Ascendance?). Tech vendors are now developing new products faster and chip sales have improved due to demand for newer chips for new types of computers and high-tech gadgets (Wall Street Journal, 2010, Search Results for Computers). Thus, it will appear that the price of the latest computer with the latest technology will pass away but the prices of second hand computers, which can until now work will fall even more. Thus, it appears that computers are now even more affordable than ever and this trend w ill continue for the future.Although today computer manufacturers have to figure hard and deep to innovate new products that attract customers, it will appear that further developments and improvements in personal, handheld or notebook computers are still possible. Research in ubiquitous, mobile and context aware computing will suggest that many new innovations are possible to be include into the portable gadget that individuals are likely to carry around with them as their personal computer (Stojanovic, 2009, Chapter 1) and (Symonds, 2009, Chapter 1). It is likely that a personal computing device of the future will contain a number of sensors that will enable it to determine its location and depending on where the device is located and the context that dominates at heart this location, the personal computing device will interact with its human user to suite the location and the dominant context. Thus, much more can be added to what is available in the form of a laptop, notebook o r a mobile computing device. However, it is likely that the computer manufacturers are waiting and parsimoniousness to get out of the economic downturn to bring new futuristic products when they are likely to sell. Obviously, calibration and further developments in networks will have to support such mobile context aware devices and this means that the economic climate must right to be able to support executing of ideas, which have been demonstrated in the laboratory. The technology exists, but it as to be rolled out for commercialisation and mass production. Even those living in developed countries and their communities cannot upgrade their networks, computing hardware and software every day. Although laptop and notebook computers today have built-in cameras and Radio Frequency appointment Devices (RFID) as well as finger print identification, the developed world still waits for ubiquitous grids, ambient intelligence, ubiquitous networking and proliferation of applications for RFID, such as contactless allowance systems (Symonds, 2009, Chapter 1). The previously mentioned will only appear when the economy is right.Gupta (2009, Chapter 7) states that in the relatively near future, organisations will have to change their mindset to thrive and to sustain competitive advantage. It will be necessary for all to rethink their global strategy, rethink innovation, organisation and to develop a global mindset kinda than a local or a national mindset. Global strategy must be designed with a view to trying to capture the largest share in the global market. Thus, emerging economies of China and India should be considered for comprehension even though the purchasing power of consumers in these countries is far below that of the developed West. Perhaps if Microsoft had been free to sell its operating systems and other software in emerging economies at prices that considered local spending power, software piracy would have been much reduced and earnings for Microsof t boosted. Such a strategy would have benefited everyone, but this did not materialise. Customised solutions to suite the local market should be available with global players. It is important to judiciously globalise the corporate alternative base and to balance the need for global integration with the need for local responsiveness. It is likely that the end game in globalisation will not be global standardisation, but global customisation to suite local markets, local requirements and local conditions. Obviously, customisation for emerging and low income countries should perhaps tilt towards making products more affordable. Innovation needs to focus on saving resources that have become depleted due to human activity and extravagance. It is important to remember that dwindle reserves of fossil fuels cannot sustain the huge international trade volumes that wear today. Thus, sustainable production for sustaining standards and innovation on all fronts is important. Gupta (2009, Chap ter 7) continues on to state that in the future, manufacturers will have to contend with a constant and rapid evolution of technology that will require that products change to suite. The author presents an deterrent example of books that used to be purchased in brick and mortar stores now being downloaded into book readers, PDAs or laptops, with these books changing dynamically as authors add new material. In the future, it will be difficult for a firm to remain closemouthed about its operations because the Internet will make news, information, balance sheets and other matters transparent to everyone with an interest. New competitors and alliances from emerging countries will have an impact on business and the previously mentioned example of Lenovo presenting a new force in production serves to illustrate this. Innovation directed towards developing new products in a collaborative manner to combine knowledge, resources and technologies will become necessary. Global hubs that coord inate together to operate synergistically for the global and local benefit will be the shape of the organisation of the future. A strong corporate culture will act as a cohesive force and executives will be willing to benefit from and present benefits to the global diversity rather than succumbing to it by building bridges rather than moats. It can be hoped that when gradually conditions emerge that will enable global multinationals to give and to receive from all, digital divide will diminish more, but it is important to remember that all, including the disadvantaged, will contribute to improve the future (United Nations ESCAP, 2006, 20 26) and (United Nations ESCAP, 2005, 1 23). Governments, the civil society, the individual and ICT manufacturers must all work together to create sustainable solutions because it is important to remember that products of innovation that benefit humanity are made possible by sharing skills, knowledge, effort and making judicious investments. It cos ts to give rise skills, learn and to take risks to innovate. Thus, it will be unfair to blame only when the manufacturers for not trying hard enough. However, ICT manufacturers too must be willing to lean towards customisation to suite market conditions rather than insisting on standardisation that will deliberately the underprivileged at an even greater disadvantage. shutdownIt is clear from the discussion presented that although the global economic recession of 2008 2010 and saturation in the developed markets has contributed to the downturn in the ICT industry, computer manufacturers are not stock-still out of ideas for new products and innovations that will benefit humanity and present a demand in the market. However, it is in the interest of ICT manufacturers to take a global view to do more to benefit and to benefit from emerging markets. Standardisation of products and prices has failed to deliver. Customisation for local conditions will result in benefits for all, but al l parties including the individual, government, civil society and the non-governmental sector must contribute while trying to understand perspectives.