Asia's Computer Challenge: Threat or Opportunity for the by Jason Dedrick

By Jason Dedrick

How did the pc evolve into its current international constitution? Why have a few Asian international locations succeeded greater than others? Jason Dedrick and Kenneth L. Kraemer delve into those questions and emerge with a proof of the speedy upward push of the pc within the Asia-Pacific region.

Asia's machine Challenge makes a scientific comparability of the old improvement of the pc industries of Japan, Hong Kong, Korea, Singapore, and Taiwan and concludes that neither a plan as opposed to industry, nor a rustic as opposed to corporation dichotomy totally explains the variety chanced on between those international locations. The authors establish a brand new force--the emergence of a world creation community. attaining past particular businesses and international locations, this ebook explores the strategic implications for the Asian-Pacific nations and the us. Now East Asia is confronted with a problem; they need to make the circulation from low margin company to excessive margin software program and data companies, whereas americans needs to reply by means of keeping management in criteria, layout, advertising and marketing, and enterprise innovation.

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Extra info for Asia's Computer Challenge: Threat or Opportunity for the United States and the World?

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These ‘‘all others’’ included a large number of companies that were able to enter the computer industry because of the PC revolution. Membership in the top fifty had also changed significantly as well, because many newcomers from the PC industry had replaced older mainframe-oriented companies. Names such as Apple, Compaq, Dell, Microsoft, and Novell were now among the world leaders, replacing the likes of Wang, Prime, Data General, Cray, and CDC. The shift from mainframes to PCs was so dramatic that IBM’s stock plummeted from a high of more than $180 in the late 1980s to as low as $43 in 14 Asia’s Computer Challenge FIGURE 1-2.

Hong Kong’s industrial structure is geared toward this role, as are its government policies. While the government does little to directly promote industries such as computers, it has invested heavily in developing an exceptional trade and communications infrastructure. It also maintains low tax rates and very liberal trade and investment rules to create a favorable environment for commerce and finance. Overall, the evidence from the Asian countries clearly supports the argument that industrial policy makes a difference in national competitiveness.

Not only did large computers fall as a share of the market, but total sales of large and midrange computers also dropped from $55 billion in 1990 to $49 billion in 1995. Meanwhile, sales of workstations and PCs grew from $16 billion to $108 billion. The companies whose business depended on large computers suffered enormous losses during this period, while many PC companies prospered. This remarkable shift in the computer market also led to a complete restructuring of the industry. The vertically integrated industry structure of the mainframe industry was replaced by a decentralized industry structure based on network economies.

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