Recommendations for PPCo

929 Words Jan 7th, 2018 4 Pages
These assessments are generally true in regards to hardware components. In many instances hardware components are subject to stiff price competition as they are often commodity like products. Innovations occur, which allows firms to charge higher prices for their product offerings. The pricing powers of these offerings are quickly eroded as competitors quickly match or exceed the competing firm's specifications. This vicious cycle occurs in many hardware components, including disk drives. Disk drives are unique as they often account for upwards of 40% of the total costs of the computer. In addition they are essential functions as they directly impact capacity and speed of the overall competing unit. Due to this priority, companies are often innovating the disk drive to either reduce costs or increase capacity. These innovations are then marketed through distribution channels that ultimately help drive revenue growth for the firm.
However, due to the rapid evolution that is occurring in the industry it is difficult to have a distribution network that is dedicated or loyal to particular products. Due to rapid evolution a product in demand today, often becomes obsolete tomorrow. As such distributors must cater to all competitors to ensure the correct products are sold at the highest margins to consumers. PPCo must now create better disk drives that…

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