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 a number of factors determine how successful a company will be. The topics covered in this report will be the key factors of demand and the power of buyers, the key input components of production and power of suppliers and the industries market structure and competitors.
Key Factors of Demand and Power of Suppliers
When one considers the factors that drive demand in this industry, one has to identify with the consumers in the industry and the needs of the consumer. When looking at the PC industry, the market is coming towards its saturation point, so consumers have a wide variety of products to choose from. Because of this, the three main factors of demand that drive this industry will be income, consumer preferences and changes in the price of competitor’s products (substitutes).
When looking at the income of a specific consumer, this is going to greatly affect what type of computer and brand they will be able to purchase. If the consumer is not rather wealthy, there is a good chance that they will not be buying an iMac anytime soon as the cheapest iMac is going to cost the consumer $1,199 (iMac). Whereas if a consumer were to log onto Hewlett-Packard’s (HP) website they would be able to find a number of computers listed under $500 (Laptops). So the consumer’s income is going to greatly affect the computer that he/she will be able to get. The good thing for the consumer is that since there are so many competitors within the market, they will be able to