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Since the architecture was public knowledge, many companies developing "IBM clones" entered the market. By the end of the 90's many strong players were in the market, most of which held less than 10% of the market (See Ex.1). This competition led to a severe price war and damaged the industry's profitability.
Bargaining power of buyers:
Currently there are 4 major markets for the industry (See Ex. 2): Large/midsize businesses & government (42.3% of the total $ sales), small business and offices (23.7%), home consumers (28.7%) and educational institutions (5.4%). Each of the groups had an advantage over the industry...
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