The Factors Leading to the Declining Consumer Appeal for PCs in the US

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.

Computer technology is constantly advancing over software and hardware that is available at any one given time. These constant changes affect how long computer products can sell for a premium price but also can make it cheaper for those consumers that are not interested in the newest and latest components. Personal computers (PC), also known as desktop computers, are common place in jobs, schools and homes. The demand for personal computers is constant and revolving since components of computers gets better and more powerful with time. The target market then becomes anyone that uses a personal computer for home or work. HP uses the fact that computers are a common item in any office or home to their advantage and offers not only PC’s but other accessories pertaining to computers as well. While HP currently excels at providing a product for a decent price they are missing out on consumers that Equalus will focus

impacted by factors such as demographic changes, changes in consumer attitudes and opinions towards consumer electronics products and services, media perception of the brand and health and welfare of target customer segment, cultural diversity, stable demand and customer satisfaction.

With the introduction of the Amazon Fire PC into the target audience of millennials (both in educational and business markets) the company has options in regards to positioning strategies. One of the more predominant strategies stands true to Amazon’s past products and releases; and that is a low-price strategy, where we are offering “premium products but not at premium prices.” The second position strategy is the uniqueness strategy of the

The PC marketplace has plausibly grasped its maximum penetration in words of households and businesses. At this point, due to some failure and obsolescence due to increasingly demanding requests are the main drivers of new PC by Substitute reports for 80% of U.S. PC purchases. As countless of these demanding requests are in the home-computer marketplace demand is subject to disposable income that has been curtailed by the recession. The purchases of computers by companies have additionally fallen sharply.

The world today is full of information, that ranges from the smallest chip of a phone or the monstrous screen of a football stadium. It can take the form of anything to grasp people's attention. Dating back to the 1920s, the word “media” has been introduced due to the golden age of American society. Introducing radios and bulky TV's, people in the United States started to turn their head to these technologies. Eventually, people worldwide are influenced by how much these technologies can shape their life. However, companies, schools, brands and other forms of businesses began to advertise themselves among the media. Therefore, marketing the use of mass media into today's pop culture. Allowing it to be the center of advertisement, such as influential desirements, regarding unnecessary needs, impacts toward pop culture, and as well of excessive use of computers.

Over the past decade there was a prominent development observed in the sphere of high technologies production, so the scale of electronics market becomes wider and spins up from day to day. “According to the Consumer Electronics Association (CEA), consumers were expected to purchase 500 million units of consumer electronics in the US in 2008. US households spend about $1407 per year on hardware.” (Electronics Takeback coalition, 2010) Accordingly, there is a clear tendency of rapid substitution of electronic appliances observed, as every other day producers offer consumers more efficient and powerful gadgets instead of their predecessors. Consequently, high rate in electronics upgrading results in shortening of their lifespan and following

The computer industry has a low to medium threat of substitute products. Alternatives to the PC include written communication, telephones, faxes, and the typewriter. Calculators can compute numbers. Books are an alternate source of knowledge, but do not have the vast amount of information that is available at the touch of a button like the Internet. The computer is also a form of entertainment. Substitutes for its entertainment value include the radio, television, video games, and movies. All of these substitutes are available, but the PC has the technology that combines each of these into one medium.

Recent years saw the worldwide PC market growth rate undergoing a drastic plummet (Arthur 2013). The latest statistics from market research firm Gartner, showed an 8.6 percent decline in PC sales in the third quarter of 2013, with shipments dipping for sixth consecutive quarters (Hachman 2013). This trend underscored challenges confronting PC manufacturers as customers favour mobile devices such as tablet computers and smartphones.

Since the Personal Computer was new in the 1980s you didn’t have to worry about buyers having knowledge of the products like they do today. Back then the company would have power over the suppliers since there were only so few of them. They had a market of a handful and they knew it. So they had to work with you. Now days there are numerous different companies available to manufacture computers for personal use or company use. In the 1980s the computer manufacturing industry was a 3 star industry. Now a days it’s no longer an attractive industry. The suppliers have the power that they didn’t have in the 1980s. Buyers have power because they’re more knowledgeable than ever. They’re able to search and look up every detail about computers to make sure that they get the right deal. The last factor that makes it unattractive is that there are all sorts of substitutes available. People are able to replace a computer now with a tablet or a smartphone. These new devices are able to do everything a computer can while taking up less space and they’re portable. It’s no longer tied down to a desk. Now days its difficult to have good margins thus creating a 1 star industry.

While there has been a decline in the sale of personal computers in the last few years, the

However, these breakthroughs have caused this rapid growth to come to an end. As the vast spread of these technologies made personal computers become a commodity, where customers are looking for the best bargains in terms of price from mass dealers; rather than looking for professional advice on what’s best for them from a certified computer dealer.

The uncertainty created by impersonal and overseas long distance customer service provided by companies that specialize in direct sales of personal computers has led many U.S. consumers to buy from more local retailers. This sales model follows the push strategy on page 46 of the text, this strategy “pushes” the product to the end user or customer through sales promotions and other incentives. (Min, 2015) The contemporary consumers are given a multitude of options when purchasing personal computers and related hardware devices that were not readily available in the past. With this purchasing power at their disposal, U.S. consumers are growing impatient with low quality equipment and foreign customer service due to outsourcing jobs overseas

Personal Computer: It has wide global business sector so it can be considered as an international market. It is not territory specific. It has huge and fluctuated client base. The firms dependably try to make the customized products as per requirement.

�� The markets for consumer electronics products and household appliances are highly competitive and the Company has experienced pressure on its prices and margins. The Company expects that technological advances