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Companies Products Brands 
Dell Mobile Phones , 
Laptops , Alienware 
etc.. 
Inspiron,Latitude, 
Precision,studio,xps 
HP ...

Competitive Position of Major 
Competitors 
 
Net 
Income 
Apple 
Market Capital 
4 B 
3 B 
2 B 
1 B 
Dell 
Acer 
Hewlett...
Scope of Competitive 
Rivalry 
 
 The competition within the PC industry is 
extraordinarily cutthroat. The top companie...
Capital Requirements 
 
The capital required to enter and actually compete with the 
big names in the computer industry a...
Big 5 Forces 
 
 Suppliers 
 Buyers 
 Rivalry among Existing Firms 
 Threat of New Entrants 
 Substitute Products
Suppliers / Buyers 
 
Intel and Microsoft are the two most dominate suppliers in the PC 
industry. 
Suppliers: Intel’s mi...
Threat of New 
Entrants/Stakeholders 
 
TNE: The chances of a new PC vendor entering into the 
market and gaining signifi...
Rivalry Among Existing 
Firms 
 
 The competition the personal computer industry is 
also an industry that resembles ‘fo...
Substitute Product 
Functionality PC/Notebook Cell Phone Handheld devices 
PowerPoint X X 
Camera X X 
Mp3 player X X X 
S...
Competitors Details 
Dell Inc. 
 
Dell Inc. : 
 Founded in 1984 
 Mission Statement: “To be the most successful compute...
Hewlett-Packard 
 
Hewlett-Packard: 
 Founded in 1939 
 HP’s mission: “To invent technologies and services 
that drive ...
Apple Computer 
 
Apple: 
 Founded in 1976 
 Mission statement of Apple is as follows: 
“Apple will be a leader in prov...
Acer(Gateway) 
 
Acer: 
 Founded in 1985 
 Mission statement of Gateway Inc. is, “To invest in our 
communities and fut...
Sony Group Inc. 
 
Sony Group Inc.: 
 Founded in 1999 
 The mission statement of sony is, “To capitalize 
on sony marke...
PC Industry Trends 
 
 Mass Customization 
 Outsourcing 
 Electronic Commerce 
 Market and Distribution Trends 
 New...
Key Success Factors 
 
 PC Industry Services 
 Technology Services 
 Consulting and Integration 
 Managed Services
Conclusion 
 
 Dell Leads 
 Global Market 
 Diversify the Workforce 
 New Innovations 
 PC Improves Society 
THANK Y...
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Porter's five force analysis on computer industry

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Porter's five force analysis on computer industry

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Porter's five force analysis on computer industry

  1. 1. 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,Mobile Phones Gateway, Packardbell Sony (not manufacturing now) Laptops, TV, Sound system etc… Vaio
  2. 2.
  3. 3. Competitive Position of Major Competitors  Net Income Apple Market Capital 4 B 3 B 2 B 1 B Dell Acer Hewlett-Packard 25 B 50 B 75 B 100 B Sony
  4. 4. Scope of Competitive Rivalry   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
  5. 5. Capital Requirements  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.
  6. 6. Big 5 Forces   Suppliers  Buyers  Rivalry among Existing Firms  Threat of New Entrants  Substitute Products
  7. 7. Suppliers / Buyers  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
  8. 8. Threat of New Entrants/Stakeholders  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.
  9. 9. Rivalry Among Existing Firms   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.
  10. 10. Substitute Product Functionality 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
  11. 11. Competitors Details Dell Inc.  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
  12. 12. Hewlett-Packard  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 oscillator Current Situation:  $86 billion in revenue  net income of almost $2.4 billion
  13. 13. Apple Computer  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  Entrepreneurial Current Situation:  $14 billion in revenue  Net income of almost $1.3 billion
  14. 14. Acer(Gateway)  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 model Current Situation:  $4 billion in revenue  Net income of almost $6 million
  15. 15. Sony Group Inc.  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 devices Current Situation:  $38 million in revenue  Net income of almost $540 thousand
  16. 16. PC Industry Trends   Mass Customization  Outsourcing  Electronic Commerce  Market and Distribution Trends  New Product and Technology Directions  New Business Strategies
  17. 17. Key Success Factors   PC Industry Services  Technology Services  Consulting and Integration  Managed Services
  18. 18. Conclusion   Dell Leads  Global Market  Diversify the Workforce  New Innovations  PC Improves Society THANK YOU

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