Discuss the implications of Moore’s law and faster, cheaper computing on a firm’s ability
to create a sustainable competitive advantage.
Moore's Law was coined after Gordon Moore's prediction that the counts of transistors on a
microchip will double every two years without an increase in cost (Moore, 1965). This law has
been modified to imply that the computing power of the microchip will double at roughly two
years. This allows the computer manufacturers to provide more powerful, smaller, and lighter
computing devices for the same price every two years.
The exponential growth seen in processing speed with lighter frames has opened up new
opportunities for the industry. One of the opportunities is that manufacturers can produce more
efficient and powerful computers. Additionally, the cost of high-spec computers is decreasing
annually making it more affordable (U.S. Bureau of Labor Statistics, 2020). Furthermore, the
enhancement of the computing power of a microchip facilitated advances in health care,
education, transportation, and many more.
Moore's Law has redefined the technology market where products have high demand but their
price is dropping (Gallaugher, 2013). Additionally, products will become obsolete within a short
period. Companies have to invent and produce at a fast rate and sell their products quickly. They
have to have a reliable and well-managed supply chain to cope with the pace.
Companies are still struggling to achieve an even smaller yet more powerful microchip to stay
ahead of the competition. However, many experts believe that Moore's law may not continue to
hold after 2020 (Tardi, 2021). Minimizing microchips further will require a large amount of
money, time, and energy. The smaller they are the more heat develops as it runs requiring a large
air conditioning system in turn requiring massive investment. Subsequently, the limit of what is
possible is approaching at a faster rate which is seen as a major threat.
Consequently, a change in focus towards application and software development that improves
the speed and efficiency of computers is a must. Most companies are nowadays capitalizing on
software advances like cloud computing, wireless communication, and the Internet of Things
(IoT) (Tardi, 2021). The ability of a firm to quickly grasp and apply these technologies will
determine if it will continue to stay competitive or not.
to create a sustainable competitive advantage.
Moore's Law was coined after Gordon Moore's prediction that the counts of transistors on a
microchip will double every two years without an increase in cost (Moore, 1965). This law has
been modified to imply that the computing power of the microchip will double at roughly two
years. This allows the computer manufacturers to provide more powerful, smaller, and lighter
computing devices for the same price every two years.
The exponential growth seen in processing speed with lighter frames has opened up new
opportunities for the industry. One of the opportunities is that manufacturers can produce more
efficient and powerful computers. Additionally, the cost of high-spec computers is decreasing
annually making it more affordable (U.S. Bureau of Labor Statistics, 2020). Furthermore, the
enhancement of the computing power of a microchip facilitated advances in health care,
education, transportation, and many more.
Moore's Law has redefined the technology market where products have high demand but their
price is dropping (Gallaugher, 2013). Additionally, products will become obsolete within a short
period. Companies have to invent and produce at a fast rate and sell their products quickly. They
have to have a reliable and well-managed supply chain to cope with the pace.
Companies are still struggling to achieve an even smaller yet more powerful microchip to stay
ahead of the competition. However, many experts believe that Moore's law may not continue to
hold after 2020 (Tardi, 2021). Minimizing microchips further will require a large amount of
money, time, and energy. The smaller they are the more heat develops as it runs requiring a large
air conditioning system in turn requiring massive investment. Subsequently, the limit of what is
possible is approaching at a faster rate which is seen as a major threat.
Consequently, a change in focus towards application and software development that improves
the speed and efficiency of computers is a must. Most companies are nowadays capitalizing on
software advances like cloud computing, wireless communication, and the Internet of Things
(IoT) (Tardi, 2021). The ability of a firm to quickly grasp and apply these technologies will
determine if it will continue to stay competitive or not.
