Different Folks, Different Strokes -How IBM, AT&T and NEC Segment to Compete |
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| Authors: | Martin Fransman |
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| Institution: | Martin Fransman is Director of the Institute for Jupanese- European Technology Studies at the University of Edinburgh. |
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| Abstract: | How are large diversified firms like IBM, AT&T, and NEC coping with competition from more narrowly concentrated companies like Intel, Microsoft, Compaq, MCI, and Ericsson? The answer is by increasing the segmentation of their activities in smaller, more autonomous, business units in the hope that this will produce better focus, flexibility, speed of response, and efficiency. But increased segmentation contradicts one of their major potential advantages – their ability to reap benefits from the interdependence – or synergies – of their activities. How are they coping with this contradiction? Will they succeed? |
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