The PC Industry Wars


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The PC Industry Wars

  1. 1. History of personal computersIn what was later to be called The Mother of All Demo SRI researcher Douglas Englebart in1968 gave a preview of what would become the staples of daily working life in the 21st century -e-mail, hypertext, word processing, video conferencing, and the mouse. The demonstrationrequired technical support staff and a mainframe time-sharing computer that were far too costlyfor individual business use at the time.By the early 1970s, people in academic or research institutions had the opportunity for single-person use of a computer system in interactive mode for extended durations, although thesesystems would still have been too expensive to be owned by a single person.HP 9830 was an early desktop computer with printerIn the 1970s Hewlett Packard introduced fully BASIC programmable computers that fit entirelyon top of a desk, including a keyboard, a small one-line display and printer. The Wang 2200 of1973 had a full-size CRT and cassette tape storage. The IBM 5100 in 1975 had a small CRTdisplay and could be programmed in BASIC and APL. These were generally expensivespecialized computers sold for business or scientific uses. The introduction of themicroprocessor, a single chip with all the circuitry that formerly occupied large cabinets, led tothe proliferation of personal computers after 1975.Early personal computers - generally called microcomputers - were sold often in kit form and inlimited volumes, and were of interest mostly to hobbyists and technicians. Minimalprogramming was done with toggle switches to enter instructions, and output was provided byfront panel lamps. Practical use required peripherals such as keyboards, computer terminals, diskdrives, and printers. Micral N was the earliest commercial, non-kit microcomputer based on amicroprocessor, the Intel 8008. It was built starting in 1972 and about 90,000 units were sold.The first true Personal Computer was the Sphere 1 computer, created in Bountiful, Utah in 1975by computer pioneer Michael D. Wise (1949-2002). At first, Sphere 1 was sold as a kit, but waslater sold as fully assembled PC. The Sphere 1 qualified as The First Personal Computer becauseit included a keyboard, a number pad, and a monitor. In 1976 Steve Jobs and Steve Wozniak soldthe Apple I computer circuit board, which was fully prepared and contained about 30 chips. Thefirst successfully mass marketed personal computer was the Commodore PET introduced inJanuary 1977, which bore a striking resemblance to Sphere 1 of two years earlier. It was soonfollowed by the TRS-80 from Radio Shack and the popular Apple II.
  2. 2. MARKET LEADERS :Dell a multinational information technology corporation based in Round Rock, Texas,United States, that develops, sells and supports computers and related products and services.Bearing the name of its founder, Michael Dell, the company is one of the largest technologicalcorporations in the world, employing more than 96,000 people worldwide. [2] Dell is listed at #38on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company in itsindustry.Dell has grown by both organic and inorganic means since its inception—notable mergers andacquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the companysold personal computers, servers, data storage devices, network switches, software, and computerperipherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built byother manufacturers. The company is well known for its innovations Founder : Michel Dell Head Quarter: Texas, U.S Revenue : $52.9 billion Employees : 96,000
  3. 3. Hewlett-PackardHewlett-Packard Company (NYSE: HPQ), commonly referred to as HP, is an Americanmultinational information technology corporation headquartered in Palo Alto, California, USA.The company was founded in a one-car garage in Palo Alto by Bill Hewlett and Dave Packard,and is now one of the worlds largest information technology companies, operating in nearlyevery country. HP specializes in developing and manufacturing computing, data storage, andnetworking hardware, designing software and delivering services. Major product lines includepersonal computing devices, enterprise servers, related storage devices, as well as a diverse rangeof printers and other imaging products. HP markets its products to households, small- tomedium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors.Founder : Bill Hewlett, David PackardHead Quarter: California, U.SRevenue : $114.552 billionEmployees : 3, 10,000
  4. 4. Apple Inc.Apple Inc. (NASDAQ: AAPL; previously Apple Computer, Inc.) is an American multinationalcorporation that designs and markets consumer electronics, computer software, and personalcomputers. The companys best-known hardware products include the Macintosh line ofcomputers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operatingsystem; the iTunes media browser; the iLife suite of multimedia and creativity software; theiWork suite of productivity software; Aperture, a professional photography package; Final CutStudio, a suite of professional audio and film-industry software products; Logic Studio, a suite ofmusic production tools and its iOS Mobile Operating System. As of August 2010, the companyoperates 301 retail stores[7] in ten countries,[8] and an online store where hardware and softwareproducts are sold.Founder : Steve JobsHead Quarter: California, U.SRevenue : $ 42.9 billionEmployees : 34,300
  5. 5. Lenovo Group Limited (SEHK: 0992, OTCBB: LNVGY) is a Chinese-based multinationalcomputer technology corporation that develops, manufactures and markets desktops andnotebook personal computers, workstations, servers, storage drives, IT management software,and related services. Incorporated as Legend in Hong Kong in 1988,] Lenovos principaloperations are currently located in Beijing, China, Morrisville, North Carolina in the UnitedStates, and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen,Xiamen, and Chengdu in China, and Yamato in Kanagawa Prefecture, Japan.In 2009, Lenovo was the fourth largest vendor of personal computers in the world.[7] Thecompany is the largest seller of PCs in China, with a 28.6% share of the China market, accordingto research firm IDC in July, 2009. It reported annual sales of $14.9 billion for the fiscal yearending 2008/2009 (ending March 31, 2009).Founder : Liu ChuanziHead Quarter: Beijing, ChinaRevenue : $ 14.9 billionEmployees : 23,000
  6. 6. Compaq was founded in February 1982 by Rod Canion, Jim Harris and Bill Murto, three seniormanagers from semiconductor manufacturer Texas Instruments. Each invested $1,000 to formthe company. Their first venture capital came from Ben Rosen and Sevin Rosen Funds. Theoriginal Compaq PC was first sketched out on a placemat by the founders while dining in a localHouston restaurant, House of Pies.[8]Two key marketing executives in Compaqs early years, Jim DArezzo and Sparky Sparks, hadcome from IBMs PC Group. Other key executives responsible for the companys meteoricgrowth in the late 80s and early 90s were Ross A. Cooley, another former IBMer, who served formany years as SVP of GM North America; Michael Swavely, who was the companys chiefmarketing officer in the early years, and eventually ran the North America organization, laterpassing along that responsibility to Mr. Cooley, when Swavely retired. In the United States,Brendan A.
  7. 7. Market Strategies Apples Branding StrategyApple Inc. uses the Apple brand to compete across several highly competitive markets, includingthe personal computer industry with its Macintosh line of computers and related software, theconsumer electronics industry with products such as the iPod, digital music distribution throughits iTunes Music Store, and more recently in the smart phone market with the Apple iPhone.Apples product strategy is to create innovative products and services aligned with a "digital hub"strategy, whereby Apple Macintosh computer products function as the digital hub for digitaldevices, including the Apple iPod, personal digital assistants, cellular phones, digital video andstill cameras, and other electronic devices.The Apple Brand PersonalityApple has a branding strategy that focuses on the emotions. The Apple brand personality is aboutlifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; andpower-to-the-people through technology. The Apple brand personality is also about simplicityand the removal of complexity from peoples lives; people-driven product design; and aboutbeing a really humanistic company with a heartfelt connection with its customers.Apple Brand Equity and Apples Customer FranchiseThe Apple brand is not just intimate with its customers, its loved, and there is a real sense ofcommunity among users of its main product lines.The brand equity and customer franchise which Apple embodies is extremely strong. Thepreference for Apple products amongst the "Mac community", for instance, not only kept thecompany alive for much of the 90s (when from a rational economic perspective it looked like adead duck) but it even enables the company to sustain pricing that is at a premium to itscompetitors.
  8. 8. It is arguable that without the price-premium which the Apple brand sustains in many productareas, the company would have exited the personal computer business several years ago. Smallmarket share PC vendors with weaker brand equity have struggled to compete with the supplychain and manufacturing economics of Dell. Apple has made big advances in becoming moreefficient, particularly in logistics and operations, but would still find it difficult to make a profitat the price levels Dell transacts at.The Apple Customer ExperienceThe huge promise of the Apple brand, of course presents Apple with an enormous challenge tolive up to. The innovative, beautifully-designed, highly ergonomic, and technology-leadingproducts which Apple delivers are not only designed to match the brand promise, but arefundamental to keeping it.Apple fully understands that all aspects of the customer experience are important and that allbrand touch-points must reinforce the Apple brand.Apple is expanding and improving its distribution capabilities by opening its own retail stores inkey cities around the world in up-market, quality shopping venues. Apple provides Apple Mac-expert retail floor staff staff to selected resellers stores (such as Australian department storeDavid Jones); it has entered into strategic alliances with other companies to co-brand ordistribute Apples products and services (for example, HP who was selling a co-branded form ofiPod and pre-loading iTunes onto consumer PCs and laptops). Apple has also increased theaccessibility of iPods through various resellers that do not currently carry Apple Macintoshsystems (such as Harvey Norman), and has increased the reach of its online stores.The very successful Apple retail stores give prospective customers direct experience of Applesbrand values. Apple Store visitors experience a stimulating, no-pressure environment where theycan discover more about the Apple family, try out the companys products, and get practical helpon Apple products at the shops Guru Bars. Apple retail staff are helpful, informative, and lettheir enthusiasm show without being brash or pushy.
  9. 9. Dell Marketing StrategyThe Dell marketing strategy was simple and basic. Cut out the middleman and sell the productcheaper. Offer great customer service by giving the customer exactly what they want.There you have it. That is how Dell is about to become the largest company in the world sellingcomputers. They did it by building computers made to order for the customer. By handling allthe sales (retail) themselves. If you want a Dell computer you can only get it from Dell. Theirmarketing strategy allowed them to pass the savings onto the customer. Online Dell Marketing StrategiesNow, the ONLINE Dell marketing strategies are nothing different either. They do exactly whateverybody else has to do.  Targeting: They have to know who is buying computers and where online these people are going  Tracking: They have to track advertising results and make adjustments  Relationships: They build relationships with the people they advertise withThe internet is a powerful force in the business world for selling products. What makes it sopowerful?Targeting Online MarketingUnderstanding who your market is and where they hang out is so much easier to find out. It becomes veryeasy to target your customer when you know, for example: That every person who goes to a websitecalled is very likely to be interested in buying a computer or peripheral. So
  10. 10. your marketing plan should call for contacting that website and setting up advertising or getting them toreview your computer Instant Targeted Advertising.Tracking Marketing StrategiesTracking your marketing strategies has never been easier. In the offline world it is very hard todetermine how effective a TV, radio or newspaper ad was. But online you can track exactlyevery aspect and then tweak it to improve your results. Plus, advertising campaigns can bechanged on the fly. Try a new headline or graphic and see the results immediatelyWhat one amazing tool can TEST, TRACK, and TWEAK your ads and salesletters to help youmaximize and boost your profits by 100s - 1,000s of %? Oh, yeah! This tool will also do it allon its own - 100%.New Product Marketing StrategyNew product marketing strategy must follow a few basic steps. Who is your target customer andwhere do they hang out are two very important questions you must know about your new productbefore you try any marketing strategy.Now, this article is way to short to help you with all aspects of marketing. So whether you wantto have a Dell marketing strategy or have some great new product to market here is what Irecommend.All the solutions, questions and answers from the experts are already at your fingertips InternetMarketing Strategy
  11. 11. Marketing Strategy LENOVOMassive Olympics Marketing BlitzChinese IT company Lenovo opened a public relations hall inside Beijing Olympic Park on July31. Lenovo chairman Yang Yuanqing met Chinese and foreign journalists after the openingceremony.Four years ago, Lenovo signed a US$50 million contract with the International OlympicCommittee to sponsor the Olympics -- a first for a Chinese enterprise. At that time, Lenovosannual sales were a little less than $3 billion. Chinese people were concerned about the deal,calling it "unreasonable gambling." But Yang said, "Samsung has grown from a South Koreanhome appliance maker to a top-class global brand through Olympic marketing, hasnt it?Olympic marketing is a prerequisite for us to become a global brand."Using the Beijing Olympics to gain momentum, Lenovo is greatly benefiting from enhancedglobal brand recognition. With strong sales and high profits over the past three years, Lenovoleapt into the Fortune Global 500 club for the first time this year.Downtown Beijing resembles a huge marketing ground for Lenovo. So many locations in Beijingare covered with Lenovo billboards that people remark on the phenomenon. Lenovo has set upmore than 1,000 outdoor billboards in major locations in the city. About 500 city buses,including 65 double-decker carriers, plastered with Lenovo billboards navigate the city’s streets.The tactic is part of a marketing strategy intended to maximize the global TV exposure ofLenovo during the Olympics. "IdeaPad," Lenovos notebook computer, appears on the tables ofChinas CCTV anchors reporting from the games.Lenovo is also conducting PR in key global markets, such as the U.S., Europe, Australia, andIndia. It is also having a chance to show off its technological prowess to the world, taking charge
  12. 12. of all data processing, including the results of all Olympic events. This is a by-product ofLenovos acquisition of IBMs PC division, which handled data over several Olympic Games.This year, Lenovo is using 700 server computers, 12,000 desktop PCs, 800 notebooks whilemanaging about 600 technical personnel.In 1984 Lenovo started as a 10-man venture inside a small lab of the Institute of ComputerTechnology under the Chinese Academy of Sciences. Since then, it has made one success afteranother. During its early days, the company imported IBM computers to sell in China. In theearly 1990s, it began manufacturing its own computers. In 2000, it became Asias largestcomputer manufacturer. In 2005, it bought IBMs PC business for $1.25 billion, emerging as oneof the worlds three largest computer manufacturers.About 40 percent of Lenovo’s sales occur in China. According to the firm’s own analysis, a"discount China" phenomenon -- in which China-based firms spend three to four times moremarketing expenses than their rivals in advanced countries -- is still a stumbling block to itsadvance into the global market.
  13. 13. Market Share AnalysisThe PC industry celebrated its 35th year anniversary in 2010. From its humble beginning ashobby computer kits in the spring of 1975, the PC industry has come a long way. In 1975 lessthan 50,000 PCs were sold with a value of about $60M. From this limited start the PC industryhas grown to unit sales of over 280M units in 2009. PC retail revenue topped $330B in 2007 and2008, but is in a declining phase due to continued price declines and a shift to low-cost productssuch as netbooks. The next table shows the tremendous growth of the PC industry in the last 30+years. And the growth of the PC industry will continue, but at much lower rates than previously-at least in terms of unit sales.The sheer size of the PC industry limits its growth rate, but the yearly worldwide sales will growby over 40% in the next five years—from 231M units in 2006 to nearly 335M in 2012 or a 6.3%compound annual growth rate. Worldwide number of PCs in-use surpassed 900M units in 2005and will reach 1.47B units by year-end 2011. Worldwide cumulative PC sales topped 1B units in2002 and will top 2B in 2007 and 3B in 2011. PCs in-use reached 241M in the U.S. in 2006 andwill top 300M in 2012. U.S. and Worldwide PC Market Growth Table 1975 1980 1985 1990 1995 2000 2005 2010 2015U.S. PC Sales (#M) 0.04 0.76 6.6 9.5 21.4 46.0 62.0 77.1 88-90U.S. PC Revenues ($B) 0.05 1.5 17.2 24.5 56.8 86.9 90.5 75.4 70-75U.S. PC Installed Base (#M) 0.04 1.4 19 51 86 177 234 295 360-370Worldwide PC Sales (#M) 0.05 1.1 11 24 58 132 207 301 400-410Worldwide PC Revenues ($B) 0.06 3.6 29.5 71 155 251 301 300 310-320Worldwide Installed Base (#M) 0.05 2.1 33 100 225 529 910 1,415 1,980-2,030
  14. 14. PC sales for the U.S. and the main regionsPC revenue was growing slower than unit growth due to considerable price declines and is nowdeclining due to lower unit sales growth than price declines. The worldwide PC revenues were$251B in 2000, which increased to over $333B in 2007. Worldwide PC revenue will decline to$300B in 2010 and will remain in this range for the next five years.
  15. 15. Percentage Market ShareYear 2001-2005 Global PC Market Share by Units, Percent. 2001-2005Rank 2001 2002 2003 2004 20051 Dell 13.3 HP-Compaq 16.2 Dell 15.0 Dell 16.4 Dell 16.82 Compaq 11.1 Dell 15.2 HP 14.3 HP 14.6 HP 14.53 HP 7.2 IBM 6.0 IBM 5.1 IBM 5.5 Lenovo 6.94 IBM 6.4 NEC 3.4 Fujitsu* 3.8 Fujitsu* 3.8 Acer 4.65 NEC 3.8 Toshiba 3.2 Toshiba 2.9 Acer 3.4 Fujitsu* 3.8Others 58.1 56.0 58.9 56.4 53.3Year 2005-2009 Global PC Market Share by Units, Percent. 2006-2010.Rank 2006 2007 2008 2009 2009Q41 Dell 15.9 HP 18.2 HP 18.4 HP 19.3 HP 19.82 HP 15.9 Dell 14.3 Dell 14.3 Acer 13.0 Acer 18.53 Lenovo 7.0 Acer 8.9 Acer 11.1 Dell 12.2 Dell 11.54 Acer 5.8 Lenovo 7.4 Lenovo 7.2 Lenovo 8.1 Lenovo 8.75 Toshiba 3.8 Toshiba 4.0 Toshiba 4.5 Toshiba 5.1 Toshiba 5.3Others 51.6 47.1 44.5 42.3 41.1
  16. 16. Most Popular Desktops1.HP (Hewlett-Packard) Pavilion p6240f Mini-Tower DesktopCore features- 2.5GHz - 8GB DDR3 SDRAM , 750GB ,Windows 7 Home Premium x64- MPN: NY550AALaunched in year:2009Why its best:The HP p6240f represents the best combination of hardware and value in a desktop PC. With itsIntel Core 2 Quad processor you get four cores running at 2.5GHz, more than enough processingpower for multitasking on your computer. Coupling this great processor with 8GB of RAM,you’ll be free to do tasks ranging from basic office computing to photo editing and beyond. The15-in-1 memory card reader makes it very easy to save photos on the roomy 750GB hard drive.Upgrading components of this computer is relatively easy, though you probably won’t find aneed to for a few years. If you foresee any gaming in your future, there is a free PCI Express x16slot available for an upgraded graphics card. Windows 7 Home Premium comes preinstalled with
  17. 17. the Pavilion p6240f so you can experience the best and newest Microsoft operating system. Thiscomputer represents a great value and is sure to meet the needs of most home and office users.2. Apple imacCore features-21.5-inch, 3.06GHz ,Intel Core 2 Duo, 4GB of DDR3 RAM, and a500GB hard driveWhy its best :The Apple iMac all-in-one desktop computer combines immaculate style with top notchhardware. Everything works smoothly right out of the box with the Mac OS X operating system.You can set up and start exploring this computer just 5 minutes after unpacking it. Packed intothis sleek computer is an Intel Core 2 Duo processor with each of the two cores running at3.06GHz, 4GB of DDR3 RAM, and a 500GB hard drive. With these specs and Apple’sstreamlined operating system, you’re sure to be able to run any application you throw at thiscomputer – whether it be just surfing the web or editing photos.This computer is suitable for users of all ages, whether it be younger kids, college students, orthe elderly. Its large 20” screen is absolutely beautiful and provides crisp graphics utilizing the
  18. 18. internal NVIDIA GeForce 9400M graphics chip. A webcam is even built into the monitormaking it easy to video conference or take silly photos of yourself with the included Photo Boothprogram. With its blend of beautiful design and excellent components, the Apple iMac isundoubtedly a top all-in-one computer.3.Dell Studio XPS 8000 Mini-Tower PCCore features- Intel i5 750 processor, ATI Radeon 4350 graphics card, . 6GB ofRAM
  19. 19. Why its best:The Dell Studio XPS 8000 is an attractive PC with an Intel i5 750 processor at its heart. It’s alsoequipped with an ATI Radeon 4350 graphics card, so you’ll be able to play and enjoy mostgames at decently high settings. 6GB of RAM provides more than enough memory for gamesand other resource intensive applications. The 640GB hard drive is quick and provides plenty ofstorage for applications, files, photos, and videos. It ships with Windows 7 Home Premium,which is Microsoft’s best operating system thanks to its new updated interface and improvedusability. This is a solid desktop offering from Dell for anyone seeking a PC that can handleeveryday tasks, multimedia applications, and gaming.4. HP (Hewlett-Packard) Compaq Presario CQ5210F Mini-TowerDesktop core features-2.7GHz dual core AMD Athlon X2processor, 3GB of RAM, 500GB hard drive, and NVIDIA GeForce 6150 SEgraphicsWhy its best:The Compaq Presario CQ5201F is an excellent budget desktop PC. Its great hardware and lowprice make it an obvious choice for a low cost PC. It features a 2.7GHz dual core AMD AthlonX2 processor, 3GB of RAM, 500GB hard drive, and NVIDIA GeForce 6150 SE graphics. Thesespecs ensure that this computer will excel at any task the casual computer user throws at it. Thiscomputer includes the Windows 7 operating system, which offers significantly improvedperformance and usability over Windows Vista. From using Microsoft Office to basic photoediting, the Presario CQ5210F will be able to satisfy your needs. With its sub $400 price, thischeap desktop computer is a great deal.
  20. 20. Akash JauhariIMT Ghaziabad