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Entry into the market was determined by technological innovation and the availability of system-compatible software. Companies tended to design their own software, with little compatibility among systems. IBM introduced its personal computers in 1981 and dominated the market for several years. Gradually producers of software and hardware began separating, with less vertical integration and more compatibility among products. The 1980s brought a large number of smaller firms into the market, making the industry more competitive. By the end of the 1980s, substantial product differentiation had occurred, with most firms offering several models, often with several versions each...
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