What happened when Dell Computer became lax and stopped sensing? They went out of business. They lost focus and then relevance in the market. They tried to run instead of walk. They were bought out by a larger technology company.
Added by Kimberly T.
Step 1
Step 1: Dell Computer became complacent and stopped actively sensing market trends and customer needs. Show more…
Show all steps
Your feedback will help us improve your experience
Tommy Nguyen and 80 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
How does the story of Dell Inc. demonstrate the effects of competitive pricing?
Demand, Supply, and Prices
Prices as Signals and Incentives
11. In the 1970s, the computer industry was dominated by IBM and was growing rapidly. In the 1980s, many new competitors entered the market, and computer prices fell. Computer makers in the 1990s, including IBM, struggled with thinning profit margins and intense competition. How has IBM’s market-value balance sheet changed over time? Have assets in place become proportionately more or less important? Do you think this progression is unique to the computer industry?
Rashmi S.
Firms that were successful in the past can fail today because A) they keep pace with changes in the nature of competition. B) the company strategy is outdated. C) their financial situation is resilient. D) management monitors the relevant environmental factors regularly.
Nick J.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD