Wednesday 11 June 2008

USB 3.0: Stirs Conflict in Competition


Introduction: USB 3.0 promises unreal data transfer speed. As it is closing its preparation for the release in the market, the dispute regarding its requirements in the IT industry is arising. It is the conflict between the corporation which knows the specs of USB 3.0 and those who don't. USB 3.0 is also known as the "super speed" and it prides in data transfer rate of 4.8Gb per second. This is approximately 10 times faster than the USB 2.0. The date expected of its release into the market is late this year or early next year.


Conflict in the IT industry: AMD, NVidia, ViaTechnology, and etc. is unsatisfied with Intel's behavior of maintaining technology secrecry. These companies are now dedicated to finding their own independent technology to fight back against Intel's selfishness. Intel is the top leader of its industry in manufacturing CPU, chip sets, and etc. It is not the whole innovative technology that its competitors are seeking, rather they want to know the specifications and standard requirements of USB 3.0. This will allows profit for the whole industry, but Intel seeks to grasp the whole entire market without having to share any information on how they are going to release the product to the public. Intel may release such information regarding the specification and requirements of USB 3.0, but that is only after the completion of their goals. This forces other competitors to just sit and wait. It seems that Intel's goal is to be ahead of everybody in the race of USB 3.0, and they claimed that the complaints of its competitors are improper.


What Effects on Consumers?: There are many PC manufacturing companies who want to adapt compatibility on their products for the use of USB 3.0. Intel is the only one who knows recipe of such specification. Of course, it in the best interest of the consumers to purchase a better, more efficient product. However, if Intel gets sole lead on this upgraded product, the consumer sovereignty is at stake. Intel can have relative amount of control in determining the price of the product until the competitors rival with their own products. It would not be illegal under the Anti-Trust legal issues, but it will have effect on consumers. Innovators will have to pay more for it, general consumers would just have to simple wait til the price drops.


Conclusion: Intel's strategy is not illegal by any means. They have invested their own capital expenditures to come up with hot, new item. Also such competitive advantage enforces other competitors excel in advancement of technology. In result, this provides improved technology of the world. However, too much greed can isolate a company. Imagine if you are top of the class. Your classmates want to know how you study, what style of notes you take, and what pages to read. But continuous rejection of such help can lead your classmates to be uncooperative. In case you miss a class for one day, who would you ask for notes on the missed lecture? Ah-ha~! Now do you see?





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