Final answer:
The rivalry among computer manufacturers like Dell and HP is intense because they are trying to differentiate their products in an increasingly global and competitive market. The difficulty lies not just in manufacturing but also in creating a strong brand presence through significant marketing efforts, amidst the pressures of globalization and technology innovation.
Step-by-step explanation:
The intense rivalry between computer manufacturers such as Dell and Hewlett-Packard is primarily due to these companies constantly striving to differentiate their products in an oligopolistic market environment. With globalization and technological advances, the competition has become fierce, with players both large and small struggling to carve out a unique space for their offerings.
In these oligopolistic markets, large firms like Dell and HP, often need to reach a certain size before they can effectively spend on marketing efforts to create a brand that resonates with consumers worldwide. This is similar to creating a competitive brand like Coca-Cola or Pepsi, which involves not just manufacturing but also substantial marketing and advertising efforts. Moreover, product differentiation plays a significant role in engaging competition and steering clear from potential collusion scenarios.
The influx of competition from across the globe, such as Asian and European car manufacturers challenging American carmakers, shows that greater competition fosters innovation and improves product quality. Similarly, in the computer manufacturing sector, firms must innovate and differentiate to stay ahead. The balance between reaching a global audience and becoming a 'winner-take-all' market, dominated by a few large companies, is an ongoing challenge that shapes competitive strategies within the industry.