Dominant Economic Characteristics Business/Personal Computer Industry Market size: $321 Billion annual revenues worldwide; 357 million units sold annually worldwide Scope of competitive rivalry: The competition within the PC industry is extremely cut throat due to new technology‚ reliability‚ and customer service. The top companies consist of Dell‚ Hewlett Packard‚ Apple‚ Gateway‚ and Sony. Market growth rate: 14% annually Stage in life cycle: Mature Number of companies in industry: There
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Apple Team Project BUSMHR 4490 PC Industry Overview The personal computer industry‚ like many industries before it‚ has undergone drastic changes and innovations since the first PC was introduced. These changes and innovations are necessary to keep up with the always shifting and uncertain market conditions. While a lot of discovering‚ inventing‚ and tinkering was being done in the PC industry in the middle to late 20th century‚ it wasn’t until the late 1970s that Apple pioneered the first useable
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Introduction The PC Industry in the United States (U.S.) is made up of desktop PC’s and mobile PC’s. A desktop PC is a personal computer that and individual would use in their home and is not portable. A mobile PC is also a personal computer and they include laptops‚ notebooks and netbooks. While some people might think that tablets and smartphones would be part of this classification‚ they actually are not part of the mobile PC classification. PC’s are simply just personal computers. Within the PC industry
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market‚ the barrier to entry was low. This was due to the relatively low startup cost‚ which is a huge contrast to the present industry. Meanwhile‚ the barrier to entry today is moderate. While the threat of new entrants is low in most places‚ the same cannot be said about emerging economies such as India and China. Apart from the high capital cost required‚ qualities of the PCs are of the most important purchasing factors. As such‚ brand awareness is high. However‚ customers in countries such as India
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APPLE COMPUTER CASE ISSUES Core Competency (CI#1) : Apple design‚ develop and market numerous product and service lines. They sell their products to education‚ consumer creative professional‚ business and government customers. While apple seems to display numerous products and conduct business on different segments‚ it is legitimate to wonder what the company is really good at? Too much diversity is exactly what crushed Apple during the John Scully days. Cannibalization (CI#2): Through January
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may want to diversify and provide a critical assessment of the economic validity of their reasons for diversifying. Abstract Despite the different degree of competitions and the level of development in the market across the various types of industries‚ most firms are continuously and consistently looking for ways and opportunities to enhance their ability to grow or even to just maintain sustainability and survival in the industry. Firms carry out diversification such as developing new lines and
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Industry’s Dominant Economic Characteristics Market Size: Annual sales revenue and total volume. Scope of Competitive Rivalry: Local‚ regional‚ international‚ global Market Growth Rate: 2-3 percent annually Stage in Life Cycle: Early development? Rapid growth? Mature. Number of Companies in Industry: Lots of small companies or few dominant ones. EX: 110 plant locations and capacity of 4.5 million tons. Market shares range from a low of 3 percent to a high of 21 percent. Customers:
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largest 4 firms in an industry. Formula: CR4= Σ4i=1 si Calculation: (11‚834‚883 + 3‚845‚900 + 3‚696‚800 + 3‚650‚647) / 44‚582‚621 = 0.5165292996 = 0.516 (3dp) =51% Analysis: As the four firm concentration ratio is >50% this insinuates that this market structure is that of an oligopoly. Calculating the Herfindahl-Hirschman Index (HHI) Definition: The HHI is a concentration measure based on the sum of the squared market shares of all the firms in the industry. Formula:
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Despite everybody having some characteristics or costumes in common‚ the economic status will segregate you from the population. The upper class and middle- class descendants from Spaniards live in the cities. Their racial background plays an important role in their lifestyle. The poor class is the ones who lives in the outskirts of the city and rural areas. The lack of housing projects represents a big problem for the Colombians with low incomes. Also‚ water‚ electricity and the basic services
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Five Forces Analysis of PC Industry Threats of Entry The threats of new entrants in the PC industry are low in the U.S. market. The advanced technology is required to make and design PC. The US PC market was dominated by a few big names in year 2007‚ for example HP‚ Dell‚ Apple‚ and they have their own differentiate products. It is thus hard for new competitor to break into the established brand and customer loyalty. Each firm has contract or has built tight relationship with its suppliers
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