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IBM Business Consulting Services
Product styling
The new competitive differentiator in electronics
deeper
Executive brief
Product styling
Introduction Led by the personal computer segment, the electronics
In the electronics industry, technology is largely at parity industry built a model supply chain that is tightly linked and
– offerings from electronics companies are similar in highly competitive. Vertically integrated companies became
general, and every innovation in features or functions that outmoded, replaced by companies that specialized in
is introduced can be copied quickly. In addition, model standardized components and software and did business
supply chains have become tightly linked and highly with each another.
competitive. These factors have raised the stakes and
eroded profit margins for electronics companies. How, Though swift at capturing and extending cost reductions
then, can electronics companies gain a competitive edge and efficiencies, this evolved supply chain model led
in today’s marketplace? to product commoditization and standardization. Any
innovation that a company produced could be copied
One of the top differentiating competitive factors that quickly and usually at a lower cost. Therefore, competitive
is emerging for electronics products is product styling.1 advantage was fleeting. Rapid technology change and
This trend is creating new opportunities for electronics short produc
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