Microcomputer Industry & Trends
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There are three major classes of computers: mainframes, minicomputers and microcomputers. As computer technology has developed, the lines between these classes have blurred and each class has stretched its boundaries into the other. Today's desktop and laptop computers (microcomputers) are capable of performing calculations which 30 years ago would have been limited to the powerful mainframe computer class. A product such as the microcomputer, which has experienced a strong surge in demand during the 1980s and 1990s, has not gone unnoticed by competitors in this industry. This research examines the history of the microcomputer industry and the major participants, and considers the direction in which the industry is headed through the use of Porter's Five Forces and STEP analysis. Trends in the industry are noted as well as key factors for success.Understanding key characteristics of major participants in an industry is critical to understanding where the industry might be headed. For the purposes of this research, analysis is confined to the microcomputer segment of the computer industry; those companies which compete in other segments are considered from an overall company standpoint when looking at their financial position since their finances will have a significant effect on the ability of the company to perform in the microcomputer segment. Apple Computer manufactures proprietary microcomputers, software and peripheral
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rt capabilities in which companies are interested. Returning to its core customer base, the company should be able to continue to build its market share (Rosenfield 1095).
Gateway 2000 intends to capitalize on the fact that it and Dell are the only major microcomputer suppliers which market directly to customers. This, coupled with the company's build to order philosophy, gives it considerable cost savings and should help it gain market share. The company purchased Advanced Logic Research (ALR) in mid-1997, a move which gave it access to increased numbers of corporate customers; it remains to be seen whether the company can capitalize on this new market or whether it will continue to focus on its traditional individual consumer.
Hewlett-Packard
Hewlett-Packard is the first company considered here for which microcomputers are only a small part of their overall product lines. In addition to microcomputers, workstations and peripherals (the company is also a leading manufacturer of laser printers and plotters), Hewlett-Packard manufactures electronic test and measurement devices, medical electronic equipment, chemical analyzers and specialized communications test equipment. Together, these lines account for 20 percent of the
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Approximate Word count = 5120
Approximate Pages = 20 (250 words per page)
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