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HewlettPackard Strategy

may be forced to market products without desirable technological features. This could require a company to incur substantial costs to redesign their products around other parties?protected technology or to defend patent or copyright infringement actions against their own company.1 Government Forces The computer electronic industry must meet standards established by the Federal Communications Commission, and similar agencies in other countries. An example of a standard would be the regulation on the maximum amount of radiation emitted by monitors. Companies in the computer industry must receive the appropriate certification before shipping computers. Therefore, if companies encounter problems obtaining certification, they risk delays in introducing new products. In addition, advertising, shipping and other operations are subject to state regulations, regulations of the Federal Trade Commission and the U.S. Department of Commerce in the United States, and similar agencies in foreign countries. Any failure to comply with such regulations can result in significant fines, penalties, forced rebates, and shipping restrictions levied against the violating companies. Companies are also subject to federal and state sales and income tax regulations. State regulations vary by state.1 Social-Demographic Forces A relevant social force is the excitement over the Internet and e-mail. Individuals and corporations are finding computer technology very valuable in their everyday lives and operations. Individuals have quick and easy access to virtual communities and consumer information. Corporations have a vital link of communication and a strategic tool for operations and managerial decision making. For whatever reason, this trend has caused the industry to grow at a very significant pace over recent years. Without major changes in other industry forces, this demand is foreseeable into the future. Consumers have also changed and have become knowledgeable ...

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