STRATEGIC ISSUES, OPPORTUNITIES

AND VULNERABILITIES
Strategic Issues
1) Pricing- Low entry barriers, new competitors driving
price down
2) Innovation becoming obsolete within a short time,
return on investments have to be in a short time
3) Supplier- Dominant position of supplier (Intel) – high
input costs
Opportunities around innovation
i) New markets opening up like retailers, focus
innovation on niche segments
ii) Partner with emerging players like AMD to innovate
and reduce the power of suppliers like intel
iii) Increase innovation focus on segments that have
higher brand loyalty like server markets and corporates
iv) Process improvement innovations to reduce costs

Vulnerabilities around innovation

1) A rapidly changing environment where technology
becomes obsolete quickly
2) Increased consumer awareness about choices of
products and cost-benefit analysis of these products
3) Efforts by suppliers like Intel to increase its sales by
promoting a market structure where there are large
number of PC companies