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Economics of Computers

poly market will allow EBM to keep their product profit margins high. However since there is not any capital for research and development in this small organization, they will have to ramp up to service and deliver a product that is not yet adopted as an industry standard. This will allow them to stay ahead of the price-searchers curve. If they have chosen an appropriate and soon to be accepted technology then other sellers will soon provide this product and service as well. This will force prices down once again until there isn't any economic profit. If this company insists on embracing this industry then they will have to accept the level of competition that exists in that market. They should look to do more research into industry trends and always be prepared to jump on the rumor of new break-though technology. However, they will also need to be prepared to abandon poor choices and areas of the industry that do not show any economic profit. This will greatly affect the organization in regards to its structure. A corporation that intends to be this flexible will have to have a very lean administrative staff and often replace the existing staff with experienced sales and technical engineers in the newly adopted field. ...

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