Strategies for Survival in the Microcomputer Industry 1985-1989

Abstract

Investigation of the population of microcomputer firms that competed in the turbulent period of 1985 to 1989 raises questions about population ecologists' assumption of strategic inertia and calls into question the assumption of strategic interdependence advocated by strategic-management theorists and industrial-organization economists. Classification of the firms in the microcomputer industry indicates consolidation from six to four strategic groups, with a consequent reduction in strategic diversity. Many survivors changed strategies; however, firms with broader-scope strategies were more likely to be successful.