Globalisation of disk-drive industry

Abstract

The history of the disk-drive industry is relatively short, and has been very volatile indeed. Intense competition in the market place has created rivalry among major OEM players, and introduced continuous price wars, and thus reducing profit margins to almost dangerous levels for many companies and negative margins and negative growth for others. Cost-cutting has not only become a necessity but almost an obsession for all. This has forced all major companies to seek relocation to places where cheaper labour costs with smaller overheads can make them more competitive. This paper discusses some of these issues facing the disk-drive industry as it globalises. Issues involve innovation, technology, supplier issues, management, competition, etc.