Dell vs Hp

Currently the margins Inventec makes on its Notebook PC’s are low and tough competition is pushing the margins even lower. Inventec’s reliance on HP-Compaq puts the company in danger of going out of business should HP-Compaq suddenly decide to take their business elsewhere. It is imperative that Inventec diversify its products and increase its customer base.

Dell and Hewlett Packard (HP) are two of the most influential companies in the PC market. The CEO of HP requires an understanding of how dells strategy allows it to achieve a competitive advantage so that he/she can counteract it. This report has been carried out to provide the CEO with the necessary information to do this. Therefore the objective of the report is to provide the CEO with detailed information on Dell as a business and its strategy. In order to achieve this, first the main strategies of Dell and how they provide competitive advantage will be identified, then the business models and e-business initiatives used

Acer’s acquisitions have aided it in rising to become a very powerful player in the PC industry. According to Businessweek.com, the company is benefiting from its $710 million purchase of Gateway, announced in August 2007. At the time of the deal, Gateway was the third-biggest PC brand in the U.S., and the purchase has helped Acer gain ground in a market that had long stymied the Taiwanese

Supervising managers often bear the burden for companies. They are expected to learn how to lead employees with little to no guidance from officials in higher positions. As a result, many new managers learned how to fulfill their role through trial and error. It seems absurd that such an important position would be treated so insignificantly. Company leadership teams have begun to notice the poor preparation skills that are offered to managers, and have decided to make some major improvements to enhance the overall quality of their training programs.

One critical factor repeatedly presented itself throughout this research project and that is the absolute necessity for Dell to find a way to innovate in a sustainable manner. Having Chairman Michael Dell at the helm again is beneficial to the growth and cohesive vision of the firm, but Dell is losing ground to rivals such as HP in the areas of technological advances and sales. Another key take away is that Dell leaders must invest in the training and re-educating of employees and invest in the research and development of products in collaboration with the firm’s key suppliers in its network. Critical to the success

The PC industry has started to develop fast in the 80's when IBM, the leader of the industry thanks to the first mover advantage, launched its first PC series and later on when numerous small companies entered the market. PC is a new product and companies had to create the demand to it from the scratch. We will apply the Porter's 5 Forces model to examine the PC market and see how forces of competition

sales five year average of 75.96%. This in turn gives HP higher gross revenue than Dell most

For starters, the video game industry consists of three primary sectors; PC, console and mobile. PC gaming is currently the biggest moneymaker followed by console and mobile. However, mobile is poised to eclipse both PC and console sales in the next 5 years. Console gaming remains a blue chipper in the industry with limited upside or downside potential. Despite the booming popularity of PC games, computer sales continue to struggle. Names like HP (HPQ) and IBM (IBM) continue to point to a weak PC market as the source of its problems. Both stocks are down double digits in the past 12 months and should only be pursued as long term investments.

There are many competitors in the PC industry, which results in intense competition in the industry. The top PC competitors are Lenovo, Hewlett-Packard (HP), Dell, and Apple. Apple controls a large share of the PC market. Since Steve Jobs as CEO, Apple has gain significant market share with their innovative and high quality products. HP is a top competitor to Apple, but does not offer significant differentiation in products. Dell and Lenovo are strong competitor and offer low cost PC products. HP, Dell and Lenovo compete in the low cost PC market, which make the low cost PC market competition very stiff. Apple choses not to compete in the low cost market and instead competes in the high PC market. Apple does very well in the high end PC market as they restructure their business to be innovative and high quality.

In this report, the secondary data is used to assess and apply the use of economic theories and other relevant issues. The key findings of this report were that Lenovo is a US$39 billion fast growing business with its success completely depending on its innovation, high efficiency in global supply chain and for maintaining a strong business strategy that differentiates it from its competitors like Dell and Hewlett-Packard (hp).

A noted misstep in their revised process was that they continued to build systems based on forecasts, rather than based on customer orders. As a result, inventory was still a significant cost factor, and IBM incurred big losses in their PC division from 1996-1998 from this and other initiatives. Meanwhile, Compaq effectively surpassed IBM in the mid 1990s, mainly through large acquisitions of firms like DEC, and followed with attempts to mimic Dell’s build-to-order and direct-to-consumer approach. Continued use of retailers and resellers likely prevented further cost savings, and in 1998 Compaq went from profitable to merely breaking even. Gateway seemed the most well positioned to closely follow in Dell’s footsteps since they were already largely a direct-to-customer business, but difficulties with inventory, IT systems, and a product recall restricted growth. Apparent focus on small business & home sales may have also been a limitation, as the majority of Dell’s sustainable revenue and growth came from sales & relationships with large corporations. While Dell’s competitors may have attempted to mimic their successful approaches, difficulties in fully executing and realizing the benefits have prevented any significant responses.

By the late 1990s, HP’s business was facing major problems which are reflected in its financial results. Despite a 9.71% increase in total net revenue, HP faced declining net earnings of 6% from 1997 to 1998. The company had also experienced a slow and decreasing growth in revenue in comparison to its main competitors. From 1996 to 1998, HP’s annual revenue growth decreased from 21.89% to 9.71%, while one of its main rivals, Dell, was able to maintain an over-40% revenue growth in each year within the same period. Moreover, HP’s failure to satisfy customer needs and catch

Added to this has been the threat from competitive rival Dell as their profits and market share grew. Using key frameworks, I will examine and conclude

S: 1. Product diversity: HP not just do the software and hardware but the whole rang of service to design, implement and IT infrastructure. Right now HP is dominating the market of printer with 40% market share. The product diversity enables the company to hold its position even in the time of recession.

• Lenovo was number 9 on PC market and had 2.2% market share worldwide and therefore it wanted to increase its market share position.