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Industry Analysis: Personal Computers. Submitted by Jing-Ling (Genie) Yang. Industry’s Primary Focus. Personal Computer industry focus their energy on building computers for a single individual’s use Desktops, laptops, other peripheral devices

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industry analysis personal computers

Industry Analysis: Personal Computers

Submitted by

Jing-Ling (Genie) Yang

industry s primary focus
Industry’s Primary Focus
  • Personal Computer industry focus their energy on building computers for a single individual’s use
    • Desktops, laptops, other peripheral devices
  • The relative new industry :
    • The term personal computer has been in use for much of the second half of the 20th century, but many of the firms that define this industry have only existed since the 1980s
  • Faster, smaller, and cheaper
    • Multi-function computer/ Laptop, device smaller but more powerful
financial summary
Financial Summary
  • Sales Volume
    • In 2007, worldwide sales of the PC are estimated at 62.7 million units in just the 1st quarter
  • Margin
    • between 4-5% of total sales as Net Income
  • Stock Volatility
    • Seen as a risky investments (Apple $153.54, and HP $49.79)
size structure and composition of the pc industry
Size, structure, and composition of the PC Industry
  • Large industry with strong players
    • HP, Dell, Acer, Toshiba, Lenovo and Apple
  • Industry leaders
    • Organizations - HP and Dell are clearly the largest with market share of 17.4% and 14.4% respectively and each with sales above 50 billion annually.
    • individuals - Michael Dell is famous for Dell’s direct to client selling strategy and Steve Jobs has surprised the industry by repeatedly showing innovativeness within the industry for future growth
general trends and issues
General trends and issues
  • Strong growth over the past 30 years
    • Sales volume
    • Technology improvement- computer are more compact and faster over time
  • Consolidation
    • Compaq Acquired by HP and Gateway acquired by Acer
  • Global deployment
    • Global R&D, manufacturing, and sales and marketing teams
role of is in the personal computer industry
Role of IS in the Personal Computer Industry
  • IS as a Unique position –
    • companies not only use IS within their organizations, but also build and develop IS software for other organizations
    • Both Apple and IBM pioneered information systems through the early 1980s as new developments in software created a competitive advantage to buy a specific platform.
role of is in the personal computer industry1
Role of IS in the Personal Computer Industry
  • Industry IS leader:
    • IS as Operation : Dell
      • The most notable PC company for its use of IS in its direct sales model.
    • IS as Product / Strategy: Apple
      • iTunes is a critical use of IS:protect the music industries rights to intellectual capital while locking in users to the iPod product
      • VisiCalc shifted personal computer usage from simply entertainment to vital part of business as a financial tool.
the is system within the pc maker organizations
The IS system within the PC maker organizations
  • ERP system provided by 3rd party vendors
    • HP, Dell and Apple use such software as SAP, PeopleSoft, Oracle and AIX as well as customized, internal applications.