· Three of the most influential factors in home PC ownership were education, income, and children in the household.
· Consumers are becoming more computer and component literate.
· Companies are investing large amounts of money into network developments.
· The low unemployment rate allows more people the opportunity to purchase novelty items.
· Top five computer companies in 1999 ranking according to market share: Compaq (19.1%), Dell (10.3%), Packard Bell NEC (8.2%), IBM (8.0%), Hewlett-Packard (7.1%).
1) Compaq sells almost exclusively through retailers.
2) Their greatest market strength is among Fortune 1000 companies.
3) They acquired Digital Equipment Company (DEC) in order to
become a global supplier of computer hardware and network
4) Compaq offers a wide range of servers.
5) The DEC acquisition gives Compaq an advantage in the
computer-networking segment, which will look very appealing to large corporations.
1) IBM is the market leader in both entry and midrange servers.
1) H-P is the global leader in printers.
2) Their strong global reputation has helped them grow within the
3) H-P has teamed-up with Intel and are expected to use cutting
edge technology that will boost the H-P name.
4) They are the market leader in revenue, units, and growth in the
5) H-P markets over 25,000 products.
· Large drops in the prices of computer components allowed PC makers to lower their prices. These lower prices lowered the profit margin on PCs.
· The sales of servers are the fastest growing segment in the PC industry.
· Dell's competition is shifting their strategy to a build-to-order manufacturing style, in order to lower inventory costs and to speed up the delivery of new models to the market.
· There are intensive costs required to remain competitive in the computer industry due to consumer demand for innovations...