PC Industry Analysis

Mega-Competition and Trends 8

Marketing/Distribution Channels 6

Technology, Innovation & R&D 8

Strategies For Competitive Advantage 18

The following Personal Computer(PC) industry analysis explores conditions in both the domestic and worldwide computer markets. Included in the analysis are the trends that have emerged within the PC industry as it begins to mature in the U. S. and as global demand continues to rise for U. S. computer systems. Trends that are covered include, but are not limited to, improving price/performance ratios, value-added product differentiation, industry consolidation, the use of multiple channels of distribution, technological innovation, shorter product cycles, heavy expenditures on research and development, focus on untapped markets in the U. S. (small offices and home offices) and abroad (Asia, Latin America, etc.), maintaining low inventory levels, and tight control of operating costs. International government agreements and legislation and their impact on the industry are also detailed. The analysis covers the performance indicators (market share, price/earnings ratio, fixed costs, etc.

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ighlighted. Educational institutions and government agencies are two other markets that are growing and offer opportunity for the PC industry. Education offers the most promising market of the two because PCs have not yet become an integral part of classroom learning, i.e., a PC on every desk. Further, the expansion in distance learning by Universities across the country offer a lucrative market. For corporations and educational institutions, the advent of having a main server connected to terminal PCs have opened new sales potentials and helped lower costs and raised productivity for business. These results are beginning to show up on the bottom line and corporations and the PC industry drive one another because as PC manufacturers raise performance and lower price, business invest more in business technology, which further fuels PC R&D and production, "Over the past four years, business spending on computers has risen by 86%, far outpacing the 40% rise for all other types of investment. Manufacturing industries that use computers heavily have shown a brisk acceleration in productivity growth, from an annual rate of 3.2% in the 1980s to 5.7% in the 1990s" (Mandel 3). Of course, higher computer sales also spur higher compo

Category: Science - P