Hewlett Packard Computers-Marketing Case Study

* What is your competition doing? * Is changing technology threatening your position?

Microsoft’s approach of creating competition also increases both the variety and the availability of their PCs. PCs can be found almost anywhere that sells other electronics. Each PC manufacturer produces their own configurations. Each retailer sells at least a few exclusive PCs. The end result is many different PC options for the consumer.

I believe most of the general populations are aware of how rapidly technology evolves. I will start by giving a little bit of background into my own computer system. I purchased my Desktop computer system in late October 2008. At the time I was set to begin a journey into the world of higher education and needed a computer that could keep up with me. As I did my research into what was on the market that would fit not only my budget, but the needs I believe I needed. I quickly found I was not interested in anything that was on the market in stores, simply because of

The major market trends faced by the organization are the rapid development of the technology. This trend gives the customer an uneasy sensation, so the customer will ask for the upgrade at the lower cost conceivable. Other trend is the cost of the internet, and the use of the computer by their employee for personal matters.

“Moore’s law is the observation that, over the history of computing hardware, the number of transistors in a dense integrated circuit has doubled approximately every

1. What would it take for AMD to see a significant increase in its market share in processors

It is rational to believe that technology will continue to advance in the following years and decades. Especially with the rapid growth and development society saw over the past 30 years. The fact that such a titanic computer like the ENIAC or the Colossus weighing over 30 tons has developed into laptops that can weigh as little as 3 pounds like the new MacBook Pro is astonishing. It is impressive the way that technology evolves and to predict the future of it is near impossible because of the industry-changing, breakthrough technologies that seem to be discovered every year.

a technology is always replaced by a new technology after its trajectory has flattened (i.e., it has reached its performance limits)

The PC industry has started to develop fast in the 80 's when IBM 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.

Computing speed and storage capacity has been doubling about 18 months for the past 30 years. “This adherence to Moore’s Law has produced astonishing advances in communication, genetics, medicine, manufacturing, entertainment, transportation and even warfare” (AASCU 2012).

A growth rate of 2% in price is not unreasonable as the price to consumers had grown by 1.7% annually between 2003 and 2007. This growth still provides them with ample profit margins. In addition income is expected to increase by approximately 8%.

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 second mover strategy is a competitive response to first movers' competitive actions and is illustrated by imitation. Taking the time to monitor customer reaction to product improvements and avoiding the blunders and prices of new product launch are compatible with Dell's successful business model. This approach also provides Dell with time to develop more effective processes and technologies or create extra value for

Target Market: Unlike Dell, Lenovo should target the lower-end of the market i.e., home, small business, small office, and medium business sector as its primary market as the needs of these sectors in terms of user sophistication, price sensitivity, order size, geographical spread, level of support, etc. directly matches with the existing business model of Lenovo. Lenovo can use a combination of scaling and granulation to increase its existing sales and distribution network in the PRC and at the same time cater to the increasing demand for consumer customization through a granulation strategy.

The domestic market is the field which grows fast, whether the desktop or laptop, the growth rate of domestic markets in the commercial market is faster. The consumer notebook market (individual purchase market) is showing explosive growth. The market share of Dell in foreign increased gradually while the market share of domestic