computer industry analysis

8/3/2019 Computer Industry Analysis

1/8


2/8

Industrys Primary Focus

Personal Computer industry focus their energy onbuilding computers for a single individuals use

Desktops, laptops, other peripheral devices

The relative new industry :The term personal computer has been in use for much of thesecond half of the 20th century, but many of the firms that definethis industry have only existed since the 1980s

Faster, smaller, and cheaperMulti-function computer/ Laptop, device smaller but morepowerful


3/8

Financial Summary

Sales VolumeIn 2007, worldwide sales of the PC are estimated at62.7 million units in just the 1st quarter

Margin between 4-5% of total sales as Net Income

Stock VolatilitySeen as a risky investments (Apple $153.54, andHP $49.79)


4/8

Size, structure, and compositionof the PC Industry

Large industry with strong playersHP, Dell, Acer, Toshiba, Lenovo and Apple

Industry leadersOrganizations - HP and Dell are clearly the largestwith market share of 17.4% and 14.4% respectivelyand each with sales above 50 billion annually.

individuals - Michael Dell is famous for Dells directto client selling strategy and Steve Jobs hassurprised the industry by repeatedly showinginnovativeness within the industry for future growth


5/8

General trends and issues

Strong growth over the past 30 yearsSales volumeTechnology improvement- computer are more

compact and faster over timeConsolidation

Compaq Acquired by HP and Gateway acquired byAcer

Global deploymentGlobal R&D, manufacturing, and sales andmarketing teams


6/8

Role of IS in the PersonalComputer Industry

IS as a Unique position companies not only use IS within theirorganizations, but also build and develop IS

software for other organizations

Both Apple and IBM pioneered informationsystems through the early 1980s as newdevelopments in software created acompetitive advantage to buy a specificplatform.


7/8

Role of IS in the PersonalComputer Industry

Industry IS leader:IS as Operation : Dell

The most notable PC company for its use of IS in its directsales model.

IS as Product / Strategy: AppleiTunes is a critical use of IS:protect the music industriesrights to intellectual capital while locking in users to the

iPod productVisiCalc shifted personal computer usage from simplyentertainment to vital part of business as a financial tool.


8/8

The IS system within the PC makerorganizations

ERP system provided by 3rd partyvendors

HP, Dell and Apple use such software asSAP, PeopleSoft, Oracle and AIX as well ascustomized, internal applications.

computer industry analysis

Documents