The Pc Industry Essay -- essays research papers

entryIn this paper I will discuss the persistence body structure and the behavior of firms in the Personal Com giveer Industry. The personal computer application has five leaders Compaq Computer Corporation (CCC), Dell Computer Corporation, world(prenominal) Business Machines (IBM), Hewlett-Packard, and Gateway, (Industry Survey, Apr. 2000). The PC application, as discussed in the paper, is comprised only of home/ line utilize machines, not mainframes, databases, or any kind of servers or super-computers. The PC industry is a fast-growing, consumer-based oligopoly. I will prove the latter with the use of industry characteristics and firm behaviors by giving an overview of each in the lead firm and their behaviors, then by combining them into an industry analysis. The companies will be addressed from top leader to bottom.Company OverviewsCompaq Computer Corporation,(CCC) is the current industry leader. CCC boasts a 1999 market portion of 12.8%. However, this figure has decli ned slightly from its 1998 share of 13.4%. The dip is due to Dell Computer Corp.s heavy presence in the small PC market, (Industry Survey, Apr. 2000). Compaq has a wide range of PC products from littler, slight expensive machines to more costly, advanced systems. CCC has been most successful with their smaller machines, targeted to the home/family segment, because they are able to sell large quantities. However, Compaq has been unsuccessful in retaining customers because most of them were pleased with their smaller machines and did not upgrade to CCCs more expensive, high-tech systems,(Hamblen 1-2). Customer retention has been a problem for the forty billion-dollar company, (Hamblen 1-2). It is my assessment that Compaq does exempt remain the leader because their products are very easy to buy for the unlettered consumer. You may simply walk into the WIZ or BEST bribe and there are five or so Compaq machines all competitively priced with a good range of attri exceptes, usually n ot the best that a veteran user would require. For instance CCCs newest product, the iPac, is a very simple-to-use, inexpensive machine. It is hypothetic to satisfy business workers needs for a useful computer at low cost,(Wildstrom 1-2). Another problem in CCCs not-to-distant future is their distribution costs. With the use of the Internet, competitors have been able to ... ...pr. 2000). This will lower costs and possibly accession the bottom line for the computer giant. Like IBM, Hewlett-Packard made one misplay and cost itself billions of dollars in revenues. HP is a large electronics conglomerate. HP manufactures everything from calculators to top-secret government appliances. For HP the PC market is one of many. Originally Hewlett-Packard was the ideal in computer electronics however, this is not reality today. HPs reputation declined through the 80s and beforehand(predicate) 90s because of poor quality management. To regain the respect they had lost the marketing and pla n departments at HP worked their fingers to the bone to create a new envision for the company. This was very effective today HP owns a modest 6.2% of the PC market and a very healthy reputation for quality PCs and peripherals, (Industry Survey, Apr. 2000). HP has had some growth in the past few years but has failed to match the industry growth rates. The companys years of poor quality put a considerable hurt on their future growth temporary hookup HP was busy filling in the hole it dug for itself, industry leaders like Compaq and Dell were basking in their success.