Essay on Computer Industry Analysis

Compared to every other domestic industry, the semiconductor industry is unique. It is perennially one of America’s top exports, and every year, chip makers and designers dramatically increase the performance of their products while decreasing prices, making high-end technology goods increasingly productive and affordable for consumers.

• The consumer electronics market is highly competitive with rapid changes in consumer demand patterns.

This assignment is based on the declining consumer appeal to PC in US. Due to technological advancement; PCs are replaced by tablets and Smartphone. This assignment includes all the factors such as political, legal, social, technological, etc. that leads to the declining consumer appeal to PCs. The current target demographics are also discussed along with the recommendations given to the marketer. China is selected as a country for marketing PCs via using effective positioning strategies.

The semiconductor industry thrives due to rapid technological advancement and innovations contributed by various countries of the world. Where European Union and United States have been leading the industry, the Asian countries are now

computer hardware sector. The company has a high brand value in the market due to its cost

The mission statement of R. J. B. Industries: “To exceed our customer’s expectations in quality, delivery, and cost through continuous improvement and customer interaction.” (R. J. B Industries, 2008). Unfortunately, this ambitious mission statement does not appear to be reflected in its website.

The large capital requirements to enter the computer industry combined with established brand identities of the current incumbents make barriers to entry high, not to mention the economies of scale and distribution channels that incumbents enjoy which make entry barriers even higher. The current PC incumbents enjoy demand-side benefit of scale in the business sector where PC buyers prefer to buy products from large trusted companies, raising the level of entry barriers.

This Industry Analysis is on Technology Consulting and Outsourcing Services. Focusing on companies providing Global IT consulting services in this industry. This report will provide industry financial projections, competitors market capitalization, market share, and challenges.

The PC industry was experiencing tremendous cost pressure and was undergoing a period of consolidation. As profit margins fell, PC makers were launching cost reduction strategies aimed at further improving the efficiency of their supply chains, while lowering the cost of distribution. According to a recent newspaper article: The latest financial results for PC makers show a slow down in both sales and profitability. Both corporations and consumers are holding on to their PCs for a longer period of time to avoid the cost and hassles associated with upgrading their equipment. As a result, purchases are being deferred and PC makers are looking at new markets for growth opportunities. The industry appears to be undergoing a wave of consolidation as cost control and scale become more important than ever before.1 In 2007, a major news magazine ran a cover article entitled “Whither the PC?” The threats reported in their analysis were worldwide and stemmed from a variety of factors including the growing popularity of mobile phones, PDAs and web-based application software. For most people, email is the most important application that they use. For a long period of time, sending and receiving email necessitated having a full-fledged PC. Nowadays, though, businesspeople and consumers want to

The other growing technological trend that is growing is cell phone use. It too allows people to access information from around the world with ease. Whether you are calling another country or surfing the web, information that would normally require a trip to the library can now be accessed on your cell phone. Depending on the phones style and capabilities, it can be used just as easily as a laptop computer.

As indicated in the table above, Dell and HP are the strongest players in the computer industry. These results are also supported by the market share statistics presented in case Exhibit 3. Conversely, the table above indicates Acer as the industry’s weakest rival in part because it focuses on producing low priced computers,

And these analyses will be done with the help of Porter’s 5 forces (see appendix 1, 2, 3). This analysing toll deals with issues which are from outside the industry that impacts the nature of competition within the certain industry. Thurlby, (1998) stated “Understanding the nature of each of these forces gives organisations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market”1. The analysis of the three industry are given belowPC industry (See appendix 1) This competition within the PC industry is extraordinarily high consisting with top companies like Dell, HP, Apple, Gateway and Sony. In order to gain competitive advantage, the key factors are advancement in technology, custom built PCs, reliability and standard customer service. The life cycle of PC industry can be seen as mature (See appendix 6); however the growth of PC’s has not decline. The reason is due to the globalisation trends taking place within the major firms. The barriers very high where there are already five main firms that dominate the market. Therefore, the chances of new PC companies entering the market and get significant hold of market share is very slender. The main two factors that are making the entry level high are mainly cost and distribution and the top five firms also control 70 per cent of the global personal computer market. Another factor may be is that

PC industry is characterized by fast declining ASP year over year. Together with the increasing component costs from 2009, both Dell and HP are facing squeezing profit margins (HP 2010; Dell 2010). In the first quarter of 2011, HP’s gross margin for its Personal System Group (PSG) is as low as 6.4% (Epstein 2011). Similarly, Dell’s gross margin of PCs is often 3 to 5% (Wang 2010). This indicates that if both

It is beyond all doubt that Apple Inc is one of the most successful and well-known companied all over the world nowadays. What’s more, the company is considered to be the leader of the industry The Apple products are of high quality and in high demand on all the markets. Apple services and stores are the gold standards for all the followers and niche players of the industry. Moreover, the majority of Apple customers are extremely loyal to the brands. Once they started using its high-technical products they keep doing it. At the same time the market share of the company is increasing constantly. Probably all the competitors are questioning what is the key to Apple Company’s success. It is important to note that the whole strategy determines the success of the business and the strategic analysis of the company can help to identify the main criteria. Thus, the object of the research paper is to develop a strategic analysis of Apple Inc, including its internal and external environment.

In 2010 the total shipments of PC market reached 13.06 million units, an increase of 10.7% over 2009. View on the industrial chain, the basic pattern of PC products industry chain did not change throughout 2010. The whole industry chain of living was still the most dominant upstream chip and operating system. However, in these two markets, Intel and Microsoft are challenged with AMD and LINUX. Harvard business school case study—Taking Dell Private P1-2