PC Industry Analysis
Summary of 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 are 5 major PC companies with a handful of smaller ones also. Major ones are Dell, HP, Sony, Lenovo, and Apple. Market share ranges from 5-28% in U.S. and 4-18% worldwide.
Customers: Millions of customers as customers range from businesses to individuals. It is a diverse customer base.
Degree of vertical integration: Mixed; many of the computer companies also own companies that make parts for the computers or different things that can go with a computer eg. Printer, computer screen, external hard drive.
Ease of entry/exit: Limited entry and exit barriers due to the ease of assembling computers.
Technology/innovation: Technology is evolving every year in this industry sometimes even every couple of months. Computers are becoming smaller, and people are using their phones for more things also.
Product characteristics: Each PC is made up of the same basic components but can vary in looks and size. The basic components are the case, motherboard, CPU, RAM, disk controller, hard disk drive, video display adapter, monitor, input device, and modem.
Scale economies: Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology.
Learning and experience effects: Most homes with internet access own a computer. There can be problems when trying to install new software or connecting things, but due to the computer being in almost
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 are 5 major PC companies with a handful of smaller ones also. Major ones are Dell, HP, Sony, Lenovo, and Apple. Market share ranges from 5-28% in U.S. and 4-18% worldwide.
Customers: Millions of customers as customers range from businesses to individuals. It is a diverse customer base.
Degree of vertical integration: Mixed; many of the computer companies also own companies that make parts for the computers or different things that can go with a computer eg. Printer, computer screen, external hard drive.
Ease of entry/exit: Limited entry and exit barriers due to the ease of assembling computers.
Technology/innovation: Technology is evolving every year in this industry sometimes even every couple of months. Computers are becoming smaller, and people are using their phones for more things also.
Product characteristics: Each PC is made up of the same basic components but can vary in looks and size. The basic components are the case, motherboard, CPU, RAM, disk controller, hard disk drive, video display adapter, monitor, input device, and modem.
Scale economies: Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology.
Learning and experience effects: Most homes with internet access own a computer. There can be problems when trying to install new software or connecting things, but due to the computer being in almost