Unstoppable Threat On The Computer Industry example essay topic

The national / international economy Opportunities upswing of national economy The Tax Relief Reconciliation Act of 2001 has begun a decline in the taxes on American households, and will continue to do so until they reach the final goal of a total of 3% drop in 2006. In addition, the Working Families Tax Relief Act of 2004, which is a supplement to the 2001 act, has increased the dollar amount for child tax credit. Therefore, American households now, more than ever, have large amounts of disposable income. Recent legislation has reduced the amount of taxes for which small businesses are responsible. As a result of this recent legislation, there are three major areas of opportunity for small business owners to experience tax relief: (1) individual income tax returns, (2) growth incentives for small businesses, and (3) a reduction of taxes on dividends and capital gains.

Therefore, this allows for more capital expenditures for small businesses. mergers with overseas companies Threats international economy in recession Earlier this year, the World Trade Organization ruled the U. S export-tax provision, which was intended to boost U.S. exports, illegal. After the ruling, the EU imposed punitive tariffs, now at 12% and rising 1% each month, on about 1,600 U.S. exports. If these high tariffs are left in place it will hurt the U. S by reducing export opportunities. In addition, many of our trading partners tax income earned within their borders only, while we tax the income of U.S. taxpayers regardless of where it is earned, therefore U.S. companies doing business overseas are often subject to a double tax on foreign earnings.

In the recently released World Economic Outlook for 2004, the International Monetary Fund has projected inflation in 2004 to be higher than that witnessed in the previous few years. For instance, inflation in the US is likely to touch a level of 2.1 per cent, larger than 1.6 per cent of 2003 and the past 3-year average of 1.7 per cent. This is seen as a threat because inflation has the ability to impact price levels in the country, which could potentially slowdown economic growth. Despite the massive growth of the third quarter of last year, capacity utilization in the U.S. barely nudged up, from 72.4 percent to 72.6 percent.

Capitalists therefore have little reason to build new factories and expand the system for years, keeping job growth substandard for a long time. Throughout this cycle, there will be the continuing shift of high-wage jobs in manufacturing to China and in services to India and elsewhere. High unemployment and pressure on wages may characterize this entire business cycle, and therefore lead to even more outsourcing. Technology Opportunities In 1968, Gordon Moore created a theory, which came to be known as Moore's Law, that stated the capacity of technology would double every 18 months, and the cost would be cut in half every three years.

This is shown to be true through the amount of time it took to achieve penetration rates of 25% in U.S. homes on various products; it took 35 years for the telephone, 26 years for television, 16 years for personal computers, and seven years for the internet. However, at a conference in 2002, Bill Gates stated that we can now expect the capacity of technology to double every nine months instead of 18. This just goes to show that the technology has been changing at a phenomenal rate and will become even faster in the years to come. The educational potential of computer based technologies is wide-ranging. Introducing computer based systems not only to manage student interactions, but also to support differences in learning paths and styles, will allow more effective accommodation of a wider range of student experiences and preferences. Wide area networks and the Internet stimulate a sharing of materials and collaborative learning methods between students and teachers that can be interactive and build up a social awareness that can span cultural differences.

In addition, utilizing 3 D images and "virtuality" will enable students to explore and interact in ways which develop visualization and constructive modes of learning. differentiated products internet Threats Technology is growing at a very steady rate, however, one must wonder how long an new technology will be actually be considered new before it is replaced by and even newer one. While companies do need to "keep up with the Jones's" it poses much threat of lost sales to introduce a new technology too soon. Doing so could result in the cannibalization of the pervious products, meaning the new product would cause a decreased demand for an existing product of the same nature. In the past ten years online auctions have opened up a whole new world of opportunities to the everyday consumer. Consumers now are able to buy new or slightly used computers for incredibly low prices at such sites as Ebay. com or Bid. com. In addition to "full systems" consumers, online auctions have provided computer engineers everywhere with the resources to purchase the parts they need at low prices.

In turn this could spur the growth of numerous smaller computer manufacturers. price sensitivityDemographicOpportunities Executives and managers are spending more time working away from the office. These executives are managing entire departments from home offices in a sign that telecommuting is going increasingly more mainstream. The number of employees who performed any kind of work from home grew from 41.3 million in 2003 to 44.4 million in 2004, according to a study by the International Telework Association & Council. And they say such work arrangements are taking off even more so now as new technology - including high-speed Internet access, BlackBerry's for remote e-mail, wireless computers, instant messaging, handheld PDAs and other breakthroughs - make it possible to lead from afar. Through this virtual technology, employees can view a desktop at the same time the executive does, despite the distance. Propelled by highly capable machines offering easy portability as well as the ability to access data remotely, the portable computer market is becoming the fastest growing segment of the industry.

As these portable devices increase in popularity, there is a growing need for them to communicate directly with each other when a PC is not available. According to a national study conducted by the Survey Research Center at the University of Michigan, from 1981 to 1997 children's free time declined by 12 hours per week. In accordance to this, parents will be on the run as well, showing an even higher need to be able to do all their computing, emailing et center from a wireless, "on the go" type product. With the establishment of global broadband digital networks for consumers, the transition of all kinds of information, including wide band broadcast media into digital formats and the emergence of a rapidly moving information economy is in a new digital marketplace. From this technology has been the birth of downloading almost any type of entertainment, from video games to movies to music files. Because of the rise of online music, there has been a change in the way music is produced, sold and experienced, both by fans and those who make their living in the music business; proving that people today are more and more entertainment oriented.

Threats The worldwide population over age 65 is expected to more than double from 357 million in 1990 to 761 million by 2025. This poses an unstoppable threat on the computer industry. Numerous individuals from the "baby boomer" generation are reluctant to change in technology, and with the enormously fast pace of change in the computer industry, computer companies are sure to lose out on a large amount of profits from this age group. time efficiency falling short As our lives become increasingly complicated and fast-paced, it is more important than ever to get things done efficiently. While the computer industry does all it can to keep up with people today, consumers still demand for faster more effective products. It seems that no matter how quick the technology is for the user, items on the computer, such as downloads, continue to prove that the speed just can not keep up.

Government Opportunities Now more than ever government agencies are seeking assistance with technology and project support. Numerous government agencies, such as Department of Homeland Security, Federal Emergency Management Agency, National Institutes of Health, are already working with computer companies to help increase web and internet application development. Other areas the computer industry could capitalize in on with the contracting with the government are with website design, development, maintenance, and support, in addition to application, server, and network security. govt authorize $ to states Import tariffs are put in place to protect domestic industries from foreign competition and to protect domestic producers from dumping by foreign companies or governments. Dumping occurs when a foreign company charges a price in the domestic market which is 'too low" compared to the domestic price.

Tariffs benefit domestic producers who now face reduced competition in their home market. The reduced competition causes prices to rise. The sales of domestic producers should also rise, all else being equal. The increased production and price causes domestic producers to hire more workers which causes consumer spending to rise. The tariffs also increase government revenues that can be used to the benefit of the economy. Threats In light of the new trend of identity theft and computer viruses, consumers are more aware now than ever of the effects of unsafe computing.

The U.S. government has tried to do all it to date to combat this problem but there are still loopholes. With every new regulation that the government pursues, the computer industry is at risk for price hikes as well as a loss of consumers. Recently, there has been renewed discussion of the possibility of replacing most federal taxes with a national retail sales tax. Such an idea was broached in the 1990's, but political interest waned when it was discovered that it would take a sales-tax rate well in excess of 50 percent to replace existing federal revenues. However, now consumers will be seeing a tax rate between 45% and 53% to break even with the federal taxes. Although consumers will be taxed less in their paychecks, they will be a lot less likely to go out and buy high priced items on a whim for they will seem that much more expensive in the end, which in turn will lead to lower profits for the computer industry.

The natural environment (recycling etc) Opportunities Computers were expected largely to eliminate the need for paper copies of documents because they could be stored electronically, and now companies have reached a point where the 'virtually' paperless office can become reality. In addition to being friendlier to the environment Internet-based paperless services are faster, cheaper and more efficient. Furthermore, it reduces purchasing costs and creates less waste for recycling or disposal. The computer industry has over time identified many environmental and energy concerns associated with the manufacturing and use of equipment; including potential phases for recycling, re manufacturing, and reuse. New designs often require rethinking the materials selection choices for electronics, the kinds of resources and substances used in manufacture, and also the creation of new production techniques.

Therefore, the industry has begun to coordinate supply chain analysis of environmental issues so that final manufacturers have better knowledge of the impacts of the components they purchase from suppliers around the world, which consequently leads to a positive image in the industry. Threats Traditionally, we have tried to control the impact of wastes, including pollutants, after they have been generated. Now under the Environment Protection Agency (EPA), we are trying to use cleaner production to try to minimize the potential and / or actual economic and environmental impacts of the resources used, the volume and type of pollutants and wastes generated, and the product itself during and after the production process. Considering alternative technologies, materials, and processes that reduce releases of toxic chemicals, conserve resources, and lower risks to human health and the environment will help meet the growing global demands for 'extended product responsibility. ' However, using alternative technologies, and the increased strength of the EPA's control will being to increase costs over time.

Environmentally sound technologies should protect the environment, are less polluting, and use all resources in a more sustainable manner. In addition, they should recycle more of their wastes and products and handle residual wastes in a more acceptable manner than the technologies for which they were substitutes. However, when production processes do not use resources efficiently they generate residues and discharge wastes, as well as emissions of environmental contaminants. If the computer industry does not adopt these practices, they will succumb to much scrutiny and back publicity for using environmentally sound practices.