Market Making in the PC Industry

From Introduction: "Although PC makers have become market-makers, retailing PCs to commercial customers and consumers, the PC industry offers a different and interesting twist on the “market makers” theme. In other industries, retailers used their relationship with the final customer to gain leverage over brand name manufacturers. They also developed store brands, essentially coordinating the manufacturing process even though they do not own any factories themselves. In the PC industry, major branded manufacturers became market makers in their own right, primarily by selling directly to the final customer, and also in collaboration with major retailers. PC makers perform market-making activities such as targeting markets, defining products, capturing customers, organizing efficient supply chains, and integrating hardware, software, services and content to deliver new user experiences. Meanwhile, some retailers have developed “store” brands, but most have either lacked the ability to compete directly with brand name vendors, or decided it is not profitable to try to do so." Source: Center for Research on Information Technology and Organizations. Globalization of I.T. U.C. Irvine [via eScholarship Repository]

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