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Personal Computer Industry - Essay Example

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Summary
The external environment of business organizations significantly affects their operations. In order for companies to efficiently utilize its various resources and craft an effective strategy, they need to conduct a thorough market environmental scanning which identifies the various market forces that affects their operations…
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Personal Computer Industry
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Personal Computer Industry

Download file to see previous pages... The rapid technological innovation within the last decade has brought about the creation of personal computers. These devices are now considered necessities which facilitate the processing of data, making documents, as well as playing movies and music. Personal computers have gained popularity not only in business and commercial organizations, governments, non-government institutions and even households. The rationale for choosing to examine this market is, thus, its wide acceptance in the market especially in the United States where PC is reported to be most widely used. During 2005, the US Census Bureau reports that 70 million American households or 62% of the whole population has one or more computers in 2003. This is a large leap from the 56% recorded in 2001. Thus, this paper will primarily concentrate on evaluating personal computer market in the United States.
All the personal computers sold in the United States and in any part of the world generally perform the same functions such as "word processing, internet browsing, internet faxing, email and other digital messaging, multimedia playback, video game play, computer programming, etc" (Personal Computer 2). However, it is notable that personal computers are far from being homogenous goods. ...
For example, the personal computers offered by Apple Computers are considered to be trendy and innovative while those which are manufactured by the Japanese manufacturer such as Toshiba are identified to be more durable. Personal computers are also designed according to the lifestyle of the users. For example, desktop computers are targeted for households or individuals who does all their computing at home or at office. On the other hand, more portable ones such as laptops or notebooks are targeted for people on the go who needs computer or internet access wherever they go. Personal computers are also differentiated and designed according to the markets they are targeted. For example, companies offer different personal computers fro household, small to medium business organizations, large companies, government institutions, and other sectors.
This report aims top look at the market drivers in the personal computer industry by utilizing publicly available data such as the major competitors, the market share of its competitor, the strategies and business model of each industry player, the opportunities and threats present in the industry, and the annual report of the major industry participants. The next section will look at the supply condition of the personal computer sector in the United States followed by the demand side analysis. Lastly, this paper will assess how this market will develop in the near future.
Supply Side Analysis
The structure of the personal computer industry in the United States can be characterized as monopolistic competition. It can be recalled that a monopolistic competitive market has four distinct characteristics which include many buyers and sellers, ...Download file to see next pagesRead More
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