Companies Products Brands

Dell Mobile Phones , Laptops , Alienware etc..

Inspiron,Latitude,Precision,studio,xps

HP Printers , Software's ,Laptops , Tab , Mobile Phones etc…

HP , Compaq , HP pavilion,Omnibook,Elitebook

Apple Desktop pc’s , Mobile Phones, Apps etc…

MacBook, MacBook air,MacBook pro

Acer Laptops,Tabs,MobilePhones

Gateway, Packardbell

Sony (not manufacturing now)

Laptops, TV, Sound system etc…

Vaio

Competitive Position of Major Competitors

Net Income

Market Capital

1 B

2 B

3 B

4 B

Dell

Acer

Hewlett-Packard

25 B 75 B 100 B

Apple

50 B

Sony

The competition within the PC industry is

extraordinarily cutthroat. The top companies consist of Dell, HP, Apple, Acer and Sony.

A few factors of competitive edge: • New technology • Custom built PCs • Reliability • Customer Service

Scope of Competitive Rivalry

The capital required to enter and actually compete

with the big names in the computer industry are ridiculous. Taking into account that HP spent 3.9 billion on research and development last year alone makes a person think twice about embarking in the industry. New components and ideas are always being developed by the large companies, which few can compete. Furthermore, the brand name products distributed by Apple, Dell and HP are household names.

However, if a person is technologically savvy and creates new language or some sort of new innovation they could sell the idea to the large companies. This would be the most probable situation when attempting to create a profit within the PC business.

Capital Requirements

Suppliers Buyers Rivalry among Existing Firms Threat of New Entrants Substitute Products

Big 5 Forces

Intel and Microsoft are the two most dominate suppliers in

the PC industry.Suppliers: Intel’s microprocessor chips are used in

approximately 80% of personal computers. Microsoft operating systems are used in 90% of computers, giving it substantial bargaining power. Given that Microsoft and Intel control the majority of the PC supplier market of major component parts, the business world has named the two “Wintel.”

Buyers: The strength of the PC buyer has basically evolved from the personal computer becoming a commodity-like item. Backward integration is also a factor in the strengthening of the PC buyers bargaining Power because more and more people are building their own computer systems

Suppliers / Buyers

TNE: The chances of a new PC vendor entering into

the market and gaining significant market share is pretty slim, entry barriers are higher now than they every have been. Two of those entry barriers that are making entry into the PC market so tough are cost and distribution.Concentrated: it is estimated by analysts that in the near future the top 5 vendors may control 70% of the global personal computer market.

Stakeholders: Environmentalists and E-waste are the major stakeholders for the PC industry; the dumping of high-tech trash like computers in landfills. Hewlett-Packard, IBM and Dell have recently started up a computer recycle program, recycling in all computer brands for a small fee.

Threat of New Entrants/Stakeholders

The competition the personal computer

industry is also an industry that resembles ‘follow the leader.’ Follow the leader occurs when industry leaders are imitated by competitors; and those competitors that do not follow will fall off by the wayside. Price Wars: Ex. In 1999 the average PC cost $ 1,699. Now the average price of a PC is under a two hundred dollars.

Rivalry Among Existing Firms

Substitute ProductFunctionality PC/Notebook Cell Phone Handheld devices

PowerPoint X   X

Camera   X X

Mp3 player X X X

Spreadsheets X   X

Word processor X   X

GPS navigation   X X

Email X X X

Dell Inc. : Founded in 1984 Mission Statement: “To be the most successful computer

company in the world at delivering the best customer experience in markets we serve.”

Next day delivery No middlemen or intermediate retailers

Current Situation: Revenue over $56 billion Net income of $3.4 billion

Competitors DetailsDell Inc.

Hewlett-Packard: Founded in 1939 HP’s mission: “To invent technologies and

services that drive business value, create social benefit and improve the lives of customers—with a focus on affecting the greatest number of people possible.”

First product was an audio oscillatorCurrent Situation: $86 billion in revenue net income of almost $2.4 billion

Hewlett-Packard

Apple: Founded in 1976 Mission statement of Apple is as follows:

“Apple will be a leader in providing simple, powerful, high-quality information products and services for people who learn, communicate, and create.”

Stylish product innovation EntrepreneurialCurrent Situation: $14 billion in revenue Net income of almost $1.3 billion

Apple Computer

Acer: Founded in 1985 Mission statement of Gateway Inc. is, “To invest in

our communities and future by providing state-of-the-art technology and technical support.”

3rd largest personal computer company in the United States

Ranked in the top ten worldwide Profit pyramid modelCurrent Situation: $4 billion in revenue Net income of almost $6 million

Acer(Gateway)

Sony Group Inc.: Founded in 1999 The mission statement of sony is, “To

capitalize on sony market position as a leading distributor of computer and networking products by increasing penetration of existing markets through acquisitions and expanding into new markets.”

Computer peripheral devicesCurrent Situation: $38 million in revenue Net income of almost $540 thousand

Sony Group Inc.

Mass Customization Outsourcing Electronic Commerce Market and Distribution Trends New Product and Technology Directions New Business Strategies

PC Industry Trends

PC Industry Services Technology Services Consulting and Integration Managed Services

Key Success Factors

Dell Leads Global Market Diversify the Workforce New Innovations PC Improves Society

THANK YOU

Conclusion