Computer Industry

Economies of scale: Large companies can produce products at a much lower cost than small ones because the cost per unit drops as the volume of output rises

Larger firms tend to have lower cost compared to smaller firms, due to the fact that they are able to gain from economies of scale, but it is possible for larger firms to experience diseconomies of scale. As firms increase their production scale they tend to lower their production cost and move to the long run, this can be represented using the diagram

Part of shopping for a great deal for any product and service is buying at the right time, and refurbished notebooks are no exception. Price points shift during the year based on consumer demand, so if you time your purchase correctly you could save anywhere from $50 to a few hundred dollars. The best times to buy are during back to school season, since many students are buying new laptops and stores and brands are competing fiercely to earn every dollar, and the holiday shopping season, as laptops have become a very popular gift. In addition to cash savings, you may also be able to land free or discounted shipping, free incentives like customization of the computer's outer casing, or even free software bundles. They say timing is everything, and when it comes to used computer shopping the statement could not be truer.

Buying laptops under 500 dollars used to pose quite a great dilemma sometimes ago. Nowadays, some machines are around the same price right out of the box. With such fantastic savings on

Software companies want the best products to sell in order to stay in business and remain productive. This organization is on the rise to find the most reliable and best personal computer for excelling students by comparing and contrasting the prices, performances and models from three different brands sold by the most popular vendors. Our company selected the Apple-13.3” MacBook Pro Notebook, the HP-Envy 15.6” Laptop, and the Dell-Ultra book 15.6” Touch-Screen Laptop. After careful reviews and investigations, the organization decided that the HP Envy Laptop was best for their excelling students’ organization.

Companies are able to produce the same products they offered last year at a lower cost. This is partly due to economies of scale. In addition, lower costs are a result of knowledge improvements, i.e. as competence indices increase the

Intel excels at top-down innovation, where highly differentiated components and electronics command a high gross margin relative to competitors, enabling faster design wins with Original Equipment Manufacturers (OEMs) and development partners. This top-down innovation flow within Intel is so dominant, that the product design teams are significantly more productive than even the most advanced business process management teams (Segerstrom, 2007). Microprocessors and the follow-on Internet, networking, security and integrated motherboard products are all predicated on this top-down innovation cycle that leads to product line proliferation in Intel (Zimmerman, 2010). DRAMS were undifferentiated in structure, lacked industry standards that could create differentiated performance or compatibility based on adherence or alignment to standards or customer requirements (Nicholson, 1997). Intel chose to compete on the only other area of their core strength as a company, which is quality management and yield levels (Clark, Walz, Turner, Miszuk, 1993). Getting the yields for DRAMS to 60%, which for a brief period of time lead the global industry, only served to accelerate a very high level of commoditization in the industry (Voss, 1998).

Peng (2014) notes that the direct-export model provides numerous benefits for the business. First, exporting opens opportunities for economies of scale to increase. Mules (2014) states that by increasing the number of products produced, the cost of producing an individual item decreases. In other words, as the business increases production to meet the demand of a larger client-base, their cost per item decreases. Exporting provides a rapid increase in the economy of scale of the organization’s operations (Peng,

Cost Cutter is a large market who wants a Low cost computer that’s very easy to use for basic office applications

Economic of scale: new entrants may not able to reach the production capacity of established producers.

Intel has almost dominated the PC, laptop, and corporate computer’s CPU which allows Intel to build up highly barriers for the new entrants because of the large economies of scale. Once Intel reaches the economies scale, they have a significant cost advantage over its competitors and that this dominant ability will make its competitors are essentially price takers, with little power to set up their own prices.

External economies of scale occur when the cost per unit depends on the size of the industry but not necessarily the size of an individual firm (Krugman et al, 2015) they are most likely to arise when firms operate in the same region.

Economies of scale are cost savings arising from a business increasing its scale of operations. This is because per unit costs fall. When costs fall then cost leadership is increased.

The Laptop was chosen as it is an item which is greatly individual being used and is utilized by a huge portion of the populace over the Globe.

Price had never been this low where a desktop costs only $499, whereas laptops are hovering around $1100. Yet do not forget the $500 Apple mini sub compact laptop or the Apple iBook laptop that sells for $650, and the stripped down $400 after rebate laptops companies like Gateway and eMachine are flooding the market with to make money on volume of sales instead of a high price margin. The problem is even if the price of PCs plummets the effect is not felt immediately, because people do not rush to change their PC despite the fact they are getting it cheaper, which means the PC turnover rate is low like most durable goods. That might be what is contributing to the declining of prices, as the assumption of the manufacturers might be that if the price goes low enough people might want to change their computer to avail themselves the latest add-ons. Even the add-ons themselves seem to have reached their zenith some time ago and the latest most alluring gadget that came into existence was CD/DVD RW and every reasonably priced desktop or laptop is equipped with it. However, it does not mean the makers of PCs are not coming up with new functionality, add-ons, and price reductions to woo buyers. The other recent addition was Wi Fi that got boost from the introduction of Intel 's Centrino mobile technology chip and it had added a lot to the mobility of laptops, which can access the Internet wherever hot spots are available. Other than that, the overall performance of PCs despite