HP has had some growth in the past few years but has failed to match the industry growth rates. This was very effective today HP owns a modest 6.2% of the PC market and a very healthy reputation for quality PC's and peripherals, (Industry Survey, Apr. To regain the respect they had lost the marketing and engineering departments at HP worked their fingers to the bone to create a new image for the company. HP's reputation declined through the `80s and early `90s because of poor quality management. Originally Hewlett-Packard was the standard in computer electronics however, this is not reality today. HP manufactures everything from calculators to top-secret government appliances. Like IBM, Hewlett-Packard made one mistake and cost itself billions of dollars in revenues. This will lower costs and possibly increase the bottom line for the computer giant. With the use of the Internet, competitors have been able to. It is supposed to satisfy business workers' needs for a useful computer at low cost,(Wildstrom 1-2).Īnother problem in CCC's not-to-distant future is their distribution costs. For instance CCC's newest product, the iPac, is a very simple-to-use, inexpensive machine. You may simply walk into the WIZ or BEST BUY and there are five or so Compaq machines all competitively priced with a good range of attributes, usually not the best that a veteran user would require. It is my assessment that Compaq does still remain the leader because their products are very easy to buy for the uneducated consumer. Customer retention has been a problem for the forty billion-dollar company, (Hamblen 1-2). However, Compaq has been unsuccessful in retaining customers because most of them were pleased with their smaller machines and did not upgrade to CCC's more expensive, high-tech systems,(Hamblen 1-2). CCC has been most successful with their smaller machines, targeted to the home/family segment, because they are able to sell large quantities. Compaq has a wide range of PC products from smaller, less expensive machines to more costly, high-tech systems. The dip is due to Dell Computer Corp.'s heavy presence in the small PC market, (Industry Survey, Apr. However, this figure has declined slightly from its 1998 share of 13.4%. The companies will be addressed from top leader to bottom.Ĭompaq Computer Corporation,(CCC) is the current industry leader. I will prove the latter through the use of industry characteristics and firm behaviors by giving an overview of each leading firm and their behaviors', then by combining them into an industry analysis. The PC industry is a fast-growing, consumer-based oligopoly. The PC industry, as discussed in the paper, is comprised only of home/business use machines, not mainframes, databases, or any kind of servers or super-computers. The personal computer industry has five leaders: Compaq Computer Corporation (CCC), Dell Computer Corporation, International Business Machines (IBM), Hewlett-Packard, and Gateway, (Industry Survey, Apr. Upgrade and manage your existing PCoIP Remote Workstation Cards or buy more from our OEM partners to harness the power of high-end towers, blade servers, or rack workstations and connect users anywhere to their graphics intensive applications, designs, and images.In this paper I will discuss the industry structure and the behavior of firms in the Personal Computer Industry.
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