Abstract

Competition in the personal computer industry is predicated upon the careful management of logistics, particularly those aspects concerned with time. This is due to the need to mitigate the loss-of-value dynamics of the critical components utilized in PCs. PC firms have developed various value chain models for controlling this devaluation process. Direct marketers such as Dell have organized their production activities to manage and benefit from the constantly falling prices. In contrast, their more traditional competitors continue to lose market share because they have been unable to manage time as effectively.