1. Entry of competitors.
Entrants of the computer industry had distinct standards and unique technical features. Every computer manufacturer had different hardware and software configurations. This made application sharing and communication among the various machines virtually impossible. The first PCs introduced by Commodore and Apple were basic machines with limited capability. However, the end users were able to perform spreadsheet analysis and word processing for fewer than five thousand dollars as opposed to the multi-user mini and mainframe computers that were far more expensive and these tasks were very time-consuming to perform.
2. Threat of substitutes.
Mainframes, minicomputers, and Apple PCs were "closed" and proprietary systems and could not be copied or cloned because of patents and copyrights. However, IBM entered the computer market in 1981, and changed the computer industry by offering an "open" system. The specifications of the IBM PC were easily......
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