There are three major classes of computers: mainframes, minicomputers and microcomputers. As computer technology has developed, the lines between these classes have blurred and each class has stretched its boundaries into the other. Today's desktop and laptop computers (microcomputers) are capable of performing calculations which 30 years ago would have been limited to the powerful mainframe computer class. A product such as the microcomputer, which has experienced a strong surge in demand during the 1980s and 1990s, has not gone unnoticed by competitors in this industry. This research examines the history of the microcomputer industry and the major participants, and considers the direction in which the industry is headed through the use of Porter's Five Forces and STEP analysis. Trends in the industry are noted as well as key factors for success.
Understanding key characteristics of major participants in an industry is critical to understanding where the industry might be headed. For the purposes of this research, analysis is confined to the microcomputer segment of the computer industry; those companies which compete in other segments are considered from an overall company standpoint when looking at their financial position since their finances will have a significant effect on the ability of the company to perform in the microcomputer segment.
Apple Computer manufactures proprietary microcomputers, software and peripherals. Apple machines use Motorola microprocessors while the company's primary competition, IBM and IBM clones, use the Intel family of microprocessors. In addition, while IBM did not use a proprietary operating system (the program which users use to interface with the computer), but instead used Microsoft's DOS operating system, Apple's operating system is proprietary. Apple gained notoriety in the mid-1980s when it introduced its Macintosh computer, which was easy to use, and which Apple hoped would br...