High Innovation Turbulence in this industry which is evidently in the maturity stage
Competitor Analysis
The two major competitors are HP and Lenovo
About HP They are in the same strategic group as Dell
After losing 5% of their combined Market Share they are now gaining ground and in the US have managed to reduce the market share gap between them and Dell by increasing the efficiency of corporate functions and focusing on relationship marketing aimed at both the retailing and consumer industry with the aim of keeping customers loyal and profitable in an efficient way. The forced merger has also allowed the HP to provide a more comprehensive service and by adopting processes similar to Dell Direct Model is now able to compete more efficiently with Dell.
Being established in the retail industry is proving to be advantageous for HP as the multiple distribution channel is providing it with advantages over DELL who are currently still using the Direct Business Model only.
Innovation and new product development is also proving advantageous for HP since it is in tune with the growing customer demands for technological products to be fashions items rather than just micro processors. They can be seen to be adopting multiple strategies focusing mainly however on penetration and expansion in china and expansion and new product development strategies in the US.
The above factors are all contributing to HP s growth in the relatively saturated US market as well as in other regions e.g. APJ we cultural differences can hinder Dell Growth due to the reliance on face to face sales by many consumers.
Lenovo
Very important competitor in the Chinese market and will become an important global competitor as a result of its IBM acquisition. With one single step the company has now become the number three manufacturer world wide
Its strength primarily is a result of the untapped Chinese market compared to the relatively saturated US market. It has the greatest market share in the Chinese market which will allow for high generation of revenue and development opportunities. In addition the company is a local company and therefore will continue to enjoy the licensing and policy advantages provided by the Chinese government further establishing its competitive stance.
The IBM acquisition is a result of the company s aim to gain a foothold in the US market and internationally and established a better position for its self in the business to business context.
Hewlett-Packard is one of the most innovating companies in today's modern world. They specialize in building and producing computer software, hardware, and networking devices, but their main manufactures in their production lines are personal computers and a vast amount of printers. In addition to manufacturing computer technology, they're also involved in various military contracts that help the United States in their defense systems and infrastructure. As a result, how are these contracts helping our country's military progression and why have we developed a partnership with this private company to build numerous long-term contracts? In this paper, I plan to inform you on the company of Hewlett-Packard and how their help to the military has progressed the United States and their war efforts in fighting around the globe.
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
For many years, IBM succeeded in holding a very good market position. In fact, the company achieved a very high market share and huge profits. However, this situation did not last forever. In 1990, IBM experienced its first quarterly loss of $2billion due to some unexpected accounting charges. However, revenues increased from $62.7 billion in the previous year to $96 billion. In 1991, the c...
In order to compete they would have to be able to price match their products and provide the wide array of consumer services like Best Buy. With over 1,700 stores in the U.S. this allows the consumer easy store access with product and employee interaction of which manifest the loyal returning consumer. These factors in combination would entail a vast amount of working capital from the start along with experienced employees and therefore detouring new
Dell's strengths were oriented around listening to the customers, responding to the customers, and delivering what the customer wanted. The direct relationship was first through telephone calls, then through face-to-face interactions, and now through the internet. It has enabled them to benefit from real-time input from real customers regarding products and future products they would like to see developed. The company also doesn't use reseller or retail channels because every computer is built-to-order, which allows less inventory. The direct model allows them to take the pulse of whatever market and provide the right technology for the right customers.
Like Walmart, Apple uses its purchasing power to control suppliers and their costs. Both businesses invest in new supply chain management technologies and are always looking to improve their current processes. The efficiency of both supply chains leads to time and cost savings. Both organizations deal directly with manufacturers, leading to more regular inventory flow and is a major advantage in their supply chains. They focus on forecasting the demand in order to determine inventory needs. Collaboration and cooperation are key in both supply chains, with the creation of partnerships that secure high volume delivery at lower costs. Both Walmart and Apple keep very close and open communications with their suppliers – while Walmart is basically the creator of direct computer management, Apple sends representatives to work with their suppliers in person until they achieve the necessary efficiencies. Both companies basically reach out to their suppliers as if they were part of the same firm. Both businesses avoid the use of third-parties,
Since Best Buy sells the same items as competitors like Walmart and Target, Product Differentiation is an area that needs improvement for Best Buy. Where Best Buy excels for the Possible Competitors category is with their services. Developing specific services that are tailored to the customer needs and preferences allows Best Buy to have a competitive advantage. Consumers that shop at Best Buy often shop their because they can see the product in person and get information about new technologies or products prior to making decisions.Because Best Buy is a retail store that means its supplier are companies that produce electronic goods. The electronic goods market is saturated with manufactures and this gives best buy an advantage as it can offer more selection than some if it competitors in the specialty market of electronic goods. There are many alternate industry providers that can provide electronic goods to the costomers but with the recent failure of Radio Scach few speciality electronic stores remain, this provides an dadvantage for Best Buy.
The PC industry is highly competitive and constantly changing as technology evolves and customer needs change. Some of the top competitors in the PC industry are IBM, Hewlett-Packard, Dell and Apple. Theses rivals are constantly jockeying for the top competitor’s position. They compete in prices, product innovation, advertising, etc.
One of the largest technology company in the world, Lenovo had a humble beginning as a small Chinese firm founded in 1984. The company showed modest growth throughout the rest of the 20th century. It wasn’t until the company’s acquisition of IBM’s personal computer business in 2005 (Martin, 2014) that the company began to gain prominence in the technology industry. Lenovo’s innovation and strategic decision making has allowed the company to evolve on a global platform and enabled it to become one of the leading technology companies in the market today.
Best Buy opened it’s doors in 1966 by the name of “Sound of Music”, it wasn’t until 1986 that it proceeded to change it’s name to what it is recognized today. Best Buy is the top retailer in the nation’s (USA) consumer electronic retail industry. What makes Best Buy unique is that they sell electronics and appliances used for home and office, they provide customer service and business support through their Geek Squad Technical Support System, and they offer major tech brands and their products such as Apple and Windows in house. According to The New York Times, the computer and electronics industry consists of companies engaged in the retailing of computers and peripherals, consumer electronics and other technology products. The industry includes household appliances, audio and video equipment, consumer software, digital cameras, cell phones and components and other electronic goods.” Like many top leaders, Best Buy has not been immune to issues in regards to maintaining its status in the market. Some of the issues the company faces include, loss in stock value, loosing the retention of it’s customers, and being out-competed by e-commerce companies in the same industry such as, Amazon. All of this can be classified as a marketing problem Best Buy faces.
Expansion in product line: diversifying its product line will open a new set of opportunities while at the same time it can differentiate itself from the competitors.
...market share, Intel progressively reduced licensee and developed process and manufacturing infrastructure to manufacture chips by itself. Thus, it contained the “profit pool” in its value chain. Thereafter, successful tie-ups with ‘horizontal’ complementors like Compaq 7 Microsoft led to wrecking of IBM’s hegemony. With established leadership in microprocessor industry, Intel strategically started ‘Intel Inside’ and ‘Runs better on Pentium processor’ programs to improve brand recognition. As more and more end-customers identified Intel and microprocessor as the most important component in a PC, Intel could now command higher power and bargaining position with OEM and software manufacturers. This ensures demand-side control.
The company should make sure that they invest heavily on products that are unique and that pose greater opportunities to double in terms of sales, including the tablets. In addition, it should make sure that it maximizing the areas such as China that have proven to be beneficial in terms of sales (Luo, 2001). In neutralizing the threats, the company should work on producing unique products, that are highly effective and affordable.
Dell Inc had very effectively used the direct marketing channel for the sales of computers to the end consumer. When all the other pc makers were selling through retailers and distributors, Dell had started efficient use of the direct channels.
Case Study of Dell Computer Corporation Introduction Michael Dell founded Dell Computer Corporation in 1984 with a simple vision and business concept – that personal computers can be built to order and sold directly to consumers. Michael believed his approach had two advantages: (i) by passing distributors and retail dealers eliminated the markups of resellers, and (ii) building to order greatly reduced the costs and risks associated with carrying large stocks of parts, components and finished goods. Its build-to-order and sell-direct approach proved appealing to growing numbers of customers in the mid 1990s as global PC sales rose to record levels. In 1998, it was already the 3rd manufacturer in the United States with a 12% share of PC market and a nearly 6% share worldwide. The company’s fastest growing market for the past several quarters was Europe.