Journal Essay Example | Topics and Well Written Essays - 1500 words - 1

Journal - Essay ExampleThe foodstuff In the recent times, the growth in the smartphone market drives the industry for microprocessors. By 2014, it is judge that the total market size for cell phone users alone shall be 1.7 billion primarily driven by the surge in smartphone demand in emerging nations (Fan, Liu, Zhang and Zhao, 2008). As for the market captured by laptops, they completely acquired sales for desktops and face stiff competition from netbooks and tablets who have reported tremendous rise in sales. at that place be two basic components that hinder entry into the microprocessor industry is prices and innovative technology. Competitors are spending huge sums in new product development, technological upgradation and innovations that burn down allow patents and hence target market advantage. Companies likewise subscribe to huge economies of scale in order to compete in prices. Off late the refilling in the phone markets has evolved greatly but the substitution of CPUs is virtually unavailable. The microprocessor industry is extremely competitive in prices. Product differences between major producers wish well Intel and (Advanced Micro Devices) AMD are virtually absent. Microprocessor industry is a one that entails huge fixed costs but very low marginal costs. This gives individually company, the power to undercut the other. Exit costs of the microprocessor industry are also very high owing to huge sunk costs involved. Technology products are characterised by very short product life cycles. Technology changes and industry standards evolve as rapidly as they expire. Innovation here becomes the key to survive. The study of Apple Inc can be cited as a perfect example of innovation that led to market leadership where innovation of the iPhone took outdoor(a) margins and sliced away profits of other cellphone manufacturers who could not keep up. Competitive Business Strategies The desktop market is characterised by slow growth in the recent times. It is currently the largest and one of the most important microprocessor markets with a total of 150 million unit sales globally. The growth figures dont seem as impressive. Intel, a leading firm in the microprocessor industry, has significant technological and resource advantage in the segment. The low end segment is price sensitive and so companies like Dell and Intel should keep its strategy aligned to prices to maintain itself as a market leader (Fan, Liu, Zhang and Zhao, 2008). In strike contrast to the desktop market, the laptop market needs an entire different strategy. Here front end technologies and processor performance drive sales for a company. In the fig 1 below, it is observe that concentration of exterior design is not as important as data protection. Figure 1 Consumer Need Preference Hierarchy in the laptop Market (Source Fan, Liu, Zhang and Zhao, 2008) With a view to capture the laptop market, key industry competitors are targeting the new generation. The trend r equires thin and light laptops that do not need batteries and coolers like in CPUs. Secondly, firms like AMD are increasingly trying to differentiate their laptops by bundling as done in the Centrino platform. The company also seeks to specialise in technologies, like the vPro to enhance security of data, a huge demand fulfilment of the business class. Thirdly, companies like Intel are trying to take on market leadership in the emerging nations via the price advantage. The use of Atom processor has strengthened Intel