e fall of the Soviet Union, the demand for computer equipment has increased significantly, and Hewlett-Packard, IBM and Compaq have been well-positioned to take advantage of the demand.
This article is important for companies in the personal computer market because it points out some of the opportunities that exist for American exporters and how those opportunities can be realized.
An article in PC Week points out that some American companies have put aside the idea that local companies have a strong advantage over exporters and are going after emerging markets with complete personal computer systems. This is the case with Cisco Systems, which has seen its "intercontinental" sales double for the past several years and which considers emerging markets to be the focal point of its sales strategy in the 1990s and the cornerstone of its strategy for the coming decade.
This article highlights how Cisco Systems and other companies recognize that while the economy of Japan (and the market for personal computers) is largely mature, there are other Asian "tigers" which are emerging with strong growth potential. Companies which are selling complete personal computers rather than just components are using the same rationale that they use in other markets: convenience, economy and reliability. At the same time as companies are targeting emerging markets in Asia, they are also concentrating on Latin America, an area where demand for personal computers increased at 14 percent in 1995.
The risks in these countries can be considerable, however, and Apple Computer has an individual dedicated to its Asian markets and a separate individual responsible for the Latin American markets. Natural disasters (such as volcanic eruptions) and political turmoil can have more serious effects in emerging markets than they would in developed markets because of the lack of infrastructure. A volcano, for example, can disrupt transportation facilities i...