The overall attractiveness of the PC manufacturing business is affected by several factors. These include general macroeconomic conditions as well as industry specific factors such as the unique economic features of the industry, competitive forces, forces of change, the market position and expected behavior of the various competitors already in the industry, and the industry’s key success factors. This report examines each of these factors in turn to arrive at an overall assessment of the attractiveness of the industry, and the types of companies that would, or would not be, attracted to it. The analysis starts with an assessment of the macroeconomic conditions affecting the market The PC marketplace has plausibly grasped its maximum penetration in words of households and businesses. At this point, substitute due to wreck and obsolescence due to increasingly demanding requests are the main drivers of new PC by (see Pace of Technical Change – page 15). Substitute reports for 80% of U.S. PC purchases. As countless of these demanding requests are in the home-computer marketplace dema...
The current market is divided between a few powerful competitors that can relatively easily attract customers from one another as the switching costs are low and practical absence of product differentiation contributes to the easy loss of market share.
BBS Computing is located in Greece New York It is a Computer Sales, Service center that also does some Networking systems. Paul Saussa, Ron Bess and John Bonacci are both owners and employees of the business. It is a relatively small business that mainly does computer sales and repair with some occasional networking jobs. The actual business consists of a show room and a workshop. The showroom has different models of computers that customers can have built to buy. There are 4 different types depending on a customer’s budget for a computer. The low-end models consisting of a Pentium III processor and 256 Mb of RAM and the basic keyboard, mouse, monitor, printer, and speakers, and the high-end models consisting of a Pentium 4 processor or equivalent with 256 or more Mb of DDR RAM and premium speakers, keyboard, mouse, printer and monitor. Thus, meaning you get what you pay for. The display models allow you to show a customer some of the features of the different types of computer systems that are offered. Such things as operating systems such as Windows 98, Windows Me, Windows 2000, and Windows XP, and also programs like Nero for CD burners, All-in-Wonder TV tuner cards and applications such as Microsoft Office. This was my first opportunity to work with Windows XP.
“One hundred and thirty-thousand computers are thrown out every day in the U.S., and over one hundred million cell phones every year” (CBS News). We live in a materialistic society where more is good and the newer the better. In our fast paced lives companies used this to their advantage to continual bring out newer upd...
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
TO: Board of Directors FROM: Bhrunil Chadasama, Nicholas Messina, Shane O’Shannon and Kathleen Torpey, Company Managers DATE: December 7, 2014 SUBJECT: Performance Over Four Quarters Walking into the Market Place Live simulation our team seemed to be a little under educated about what is exactly required from each teammate. First we came up with a mission statement to provide the highest quality personal computer in the world. Then we agreed upon focusing on Traveler and Mercedes. Selecting our goals seemed easy at first but while the game progressed some of them got away from us.
PC Industry - Structural Analysis: (Using Michael Porter's Model) Based on the information provided in the case, we can do a structural analysis of the PC industry which will help us in better analysis of the case. Threat of New Entrants: Entry was easy in the industry due to its huge potential. However, the major market share was held only by a few players. Rivalry: Stiff competition among a few major players having equal strength and potential.
Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market
“Supply manager Joe Smith was considering the purchase of 1,000 desktop Personal Computers (PC’s) for his organization.
Substitute goods are different on for different market segments see (4.1) For most of the customers these substitute products cannot satisfy the needs covered by PC computers.
My report is on the company Hewlett – Packard (HP) which was founded in 1939. I mainly focused on the Personal Systems Group (PSG): business and consumers PCs mobile computing devices and workstations which is one of the major industries of HP. In order to succeed in the business industry a company needs to understand its customer’s needs and create wants for them. HP found out that the customer needed light weight, useful notebook PCs through its Research & Development (R&D) centre. Hence, it created a want; a New Commercial Notebook PC Compaq Evo Notebook N1015v which packs the power and performance necessary for mobility into a stylish design for only $899(US $). HP also finds out about its customer needs through online feedback forms and survey. Via that, HP was also able to understand that not everyone are able to use their products hence it has created this HP accessibility products which can be accessed by anyone including people with disabilities and age – limitations. Example of such product under the PSG industry is the Mobile Speak Pocket which was specially made for the visually impaired people. ( Refer To Exhibit 1a – 1c )
As the data shows within the chart and graph, The total combined projected demand amount is $795,600.00. This number is a total of 2200 LG Pro computers, 1100 for the domestic organizations and 1100 for the U.S. organizations based on the need of the organizations. The break-even number is $535,500.00, leaving us with a surplus of $266,010.00. The promotional budget is set at $134,000.00, using money wisely through advertising outlets; the projected expenses are $132,470.00.
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.
Computers have many functions. Communicating to others, performing job functions, and playing games are just some of the things computers are responsible for. Technology changes on a daily basis and will continue to. Below is a resource of information on different aspects of computing.
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.