Computer Manufacturing Industry Analysis

1. ENVIRONMENTAL ANALYSIS a. translation of the effort The following study presents a brief analysis of the work out machine and electronic Manufacturing Industry in the USA (NAICS 334 sum American Industry Classification System) with circumscribed commission on the Personal data processors sub- argona. I made the decisiveness to focus on bonny wizard of the sub-sectors ascribable to the large scope of the customary manufacture. Industries in the calculating machine and Electronic yield Manufacturing subsector group establishments that manufacture ready reckoners, electronic figurer peripherals, communications equipment, and similar electronic products, and establishments that manufacture components for such(prenominal) products. (Bureau of Labor Statistics) Given the previous description of the general Industry, I can right off go further in the description of the real point of study for this paper, which is the ready reckoner Manufacturing, clustered in l aptops, PCs and servers. This assiduity manufactures and/or assembles personal computers (PCs), laptops and servers.Operators typically purchase computer components (e. g. m new(prenominal) notices and graphics cards) from consecrate manufacturers in other industries (IBIS populace field of study 33441a, Semiconductor and Circuit Manufacturing). This labor does non embroil tablet computers, nor does it admit manufacturers of computer monitors, mice, keyboards and printers (IBIS World report 33411b, entropy processing arranging marginal Manufacturing). When covering the whole application, The US computer manufacturing perseverance includes roughly 1,200 companies with combined one-year tax income enhancement of about $75 billion.Major companies include dingle, Hewlett-Packard, and IBM. (Hoovers 2012) The computer manufacturing fabrications taxation is divided and measured according to all(prenominal) of the sub sectors that conform it. Personal computers log ical argument relationship for about 40 percent of industriousness revenue mainframes and servers, 13 percent and fund devices, about 10 percent. (HOOVERS) While respecting to the sub-industry in which this paper is foc purposed (PCs, laptops and servers), and considering just the united States, it is conformed by 355 businesses generating annual revenue up to US$37 billion.Being the leading companies Hewlett-Packard, dell and orchard apple tree. The substance amount of units sold for the industry must be taken in consideration from the quantity of units shipped in the break down year Preliminary United States PC V windupor Unit Shipment Estimates for 4Q11 (Units) caller 4Q11 Shipments 4Q11 merchandise serving (%) 4Q10 Shipments 4Q10 trade Shargon (%) 4Q11-4Q10 Growth (%) HP 4,137,833 23. 1 5,598,619 29. 4 -26. 1 dingle 4,020,549 22. 4 4,210,000 22. 1 -4. 5 orchard apple tree 2,074,800 11. 6 1,718,400 9. 0 20. 7 Toshiba 1,925,100 10. 7 1,968,091 10. 3 -2. 2 Acer Group 1,75 6,838 . 8 1,982,477 10. 4 -11. 4 Others 4,014,644 22. 4 3,583,418 18. 8 12. 0 Total 17,929,764 100. 0 19,061,005 100. 0 -5. 9 Note Data includes desk- cand PCs, mobile PCs, including mini-notebooks alone not media tablets such as the iPad.? credit Gartner (January 2012) Comparing the studied sub-industry topics with previous years, gelt and revenue pick out been endlessly decrease and the annual growth in the brave 5 years have been proscribe for the industry in about 5. 1%. Analysts from IBIS project that this allow for continue dropping for the future 5 more(prenominal) than than years.Nonetheless, The industry is capital-intensive annual revenue per employee is about $460,000 (HOOVERS), enchantment the whole Computer Manufacturing Industry in the US counts with approximately (in thousands) 1,099. 9 employees. b. subjective and External Analysis OPORTUNITIES -There is a increment consumer consider for PCs and tablets. -Their rapid growth (of the commercialize) sug gests that they allow become even more authorised to the economies of all three North American countries in the future (Bureau of Labor Statistics 2012) -The pro livingration of demoralize computing will prompt companies to append their server investments (IBIS 2012)THREATS -Industry sugar will continue to fall because of intense monetary look on competition (IBIS World 2012) -TheComputer Manufacturing industryis being rapidly supplanted by imports, curiously from China. (PR network 2012) -Imports are a flagellum for local manufacturing revenue. While import sharpness in this industry stood at 50. 7% in 2007, imports are evaluate to punish an estimated 68. 6% of home(prenominal) consider in 2012, (IBIS World 2012) -While the emergence of reinvigorated products and serve will boost industry performance, US manufacturers are not expected to produce the required hardware (locally). (PR Web 2012) -() Tablets will cut into industry revenue since they are manufactured ove rseas and are a competing force to domestic computer manufacturing. (PR Web 2012) -Computer and peripheral equipment prices vicious from 2007 to 2012, and as a result, personal computer (PC) sales are estimated to generate razor-thin margins of 1. 0% in 2012. (PR Web 2012) STRENGTHS -The Computer Manufacturing industry operates in a exceedingly globalized market, rescue unneurotic components that are manufactured serviceman(a) for assembly in a wizard location.The concentration of computer manufacturing facilities near major(ip) ports comes as no surprise. With the widespread use of lean-manufacturing protocols, computer manufacturers heavily favor locations that pick at delays in getting products to market, not to detect shipping expenses. (IBIS World 2012) -Fortunately, PCs are not the only products in this industry, and industry profit, which includes computers and more lucrative products, is expected to account for 3. 8% of revenue in 2012. (PR Web 2012) WEAKNESSES The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. (HOOVERS 2012) -Computer manufacturing and design alike require highly-educated employees (IBIS World 2012), these are very hard to find, especially in the same area of the business offices. -As a result of offshoring by US-based companies and increased competition from international firms, domestic manufacturing activity has declined. (PR Web 2012) -The demand for the Computer Industry is tied to consumer and business income, so its very sensitive and variable. . guest Analysis The total domestic (US) annual demand for the industry by the end of 2011 was US$62. 2 billion. The industrys woes cannot be goddam on a lack of demand. In fact, the luck of US households that owns at to the lowest degree one computer increased by 7. 5 percentage points from 2007 to 2012. While demand has grown, fierce competition and widespread product homogeneity (th e result of computers being assembled from govern components) have led to falling prices and profit margins (PR Web 2012)The identified target markets/ de furcatements for the Computer Manufacturing Industry are the following 1. double collective customers (B2B) Big companies 2. Small and strength size businesses (B2B) Who represent about 20% of U. S. sales 3. Individual Customers and Consumers (B2C) Who represent about 10% of U. S. sales 4. Public sector (government and educational) customers. 3. Competitors Analysis The computer manufacturing industry is highly concentrated within its close revenue-significant businesses due to the top 50 companies are prudent of about 90 percent of the total industrys revenue. Competition from abroad has tightened profit margins and prices on mass-market computer systems. Consequently, most of the industrys largest players operate in several(prenominal) related to industries to diversify their revenue sources, with a detail emphasis on the highly lucrative enterprise section and Information applied science (IT) services. Currently, Hewlett-Packard (HP) and dell are the largest US-based computer manufacturers, followed by orchard apple tree. The total revenue and market share of personal computers for the pull round year, regarding the top 3 companies in the industry is . Hewlett Packard PC grocery store Share 23. 1% Total ships political party Revenue (Jul 2011-Jul2012) $122. 52B 2. Dell PC Market Share 22. 4% Total follow Revenue (Aug 2011-Aug 2012) $60. 30B 3. Apple PC Market Share 11. 6% Total order Revenue (Jun 2011-Jun2012) $148. 81B Brands Description Hewlett Packard Hewlett-Packard Company and its subsidiaries contribute products, technologies, parcel, solutions, and services to individual consumers and weakened- and medium-sized businesses (SMBs), as hale as to the government, health, and education sectors worldwide.It divides in several parts according to their offerings Personal Systems G roup constituent ( mercantile personal computers, software and services for the commercial and consumer markets), Services segment (consulting and outsourcing to businesses), Imaging and impression Group segment (consumer and commercial), Enterprise Servers, Storage, and Networking segment (industry standard and business servers), Software segment (IT software and solutions), Financial Services segment (leasing, financing and utility programs for enterprise customers, SMBs, and other entities) and Business Intelligence Solutions.The company was founded in 1939 and is headquartered in Palo Alto, California. They serve more than 1 billion customers in more than clxx countries and have approximately 349,600 employees worldwide. HP defines its obligation in night club like this We look for how engineering and services can protagonist people and companies address their problems and challenges, and realize their possibilities, aspirations and dreams. We collapse new thinking and id eas to create more simple, valuable and trusted lives with engineering, continuously ameliorate the way our customers live and work. Hewlett-Packard HP draw Positioning You + HP make it matter. At HP we dont just count in the power of technology. We believe in the power of people when technology works for them. To help you create. To make the digital tangible. To harness the power of human culture. At HP we work to make what you do matter even more. (Hewlett-Packard) Dell Dell Inc. provides integrated technology solutions in the information technology (IT) industry worldwide. It designs, develops, manufactures, markets, sells, and supports mobility and backdrop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, as well up as servers and networking products.The company also offers several technology solutions, systems, software and specialized services. The company sells its products and services at once done its sales representatives, te lephone-based sales, and online sales and through and through retailers, third-party solution providers, system integrators, and third-party resellers. It serves corporate businesses, virtue enforcement agencies, small and medium businesses, consumers, and prevalent institutions that include government, education, and healthcare organizations. Dell Inc. was founded in 1984 and is headquartered in Round Rock, Texas.Dell describes its function in guild like this In all we do, were focused on delivering solutions to enable smarter decisions and more effective outcomes so our customers can defeat obstacles, achieve their ideas and pursue their dreams. Above all, we are committed to the superior long-term value they need to grow and thrive. Dell secern Positioning Simple and affordable information technology for everyone They are focused on making information technology affordable for millions of customers around the world. As a result of transfer relationships with customers.They are best positioned to change how customers implement and maintain information technology and deliver hardware, services, and software solutions tailored for their businesses and homes. (MBA fellowship Base 2012) Apple Apple Inc. , together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computers, and man-portable digital music players and sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide.The company sells its products and services to consumers, small and mid-sized business, education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. As of September 24, 2011, the company had 357 retail stores, including 245 stores in the United States and 112 stores internationally. Apple Inc. was found ed in 1976 and is headquartered in Cupertino, California. Apple defines its function in society like this Apple is committed to bring the best personal computing implement to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. (Apple) Apple Key Positioning Innovation leadership Competitive Advantage and Strategy of to each one Apples Post PC Strategy They indispensableness to be the controlling operating system through your life at home and on the move. That sounds a little geeky but it means that they want you to be so delighted with your experience on the iPhones operating system that you want that same experience on your tablet. afterward you are satisfied with that experience, you start to oddment why you are still apply a PC versus a mac or MacBook Air as your desktop computer. And then that will extend to your television. (Forbes 2012) Apple wants to own a generation of post-PC world users and block out their competitors until such fourth dimension as they can present a higher(prenominal)-quality user experience than Apple. That might be a long time. (Forbes 2012) The accelerating popularity of mobile computing devices such as Apple Incs iPadhas been wearing PC sales for years.To combat the corroding in sales to consumers, as well as dwindling margins as companies argue on price, Dell and HP have been gradually focusing more on sales to large enterprises. (Reuters 2012) Dells Strategy Dell has been diversifying its revenue base in the face of weakened consumer demand, gift up low-margin sales to consumers and moving into higher-margin areas, such as catering to the technology needfully of small and medium businesses in the public sector and the healthcare industry.The company outright finds itself lagging big rivals like HP and IBM in the race to become one-stop shops for corporate IT needs. (Reuters 2012) HPs Strategy HP today announced that i t has completed its rating of strategic alternatives for its Personal Systems Group (PSG) and has trenchant the unit will remain part of the company. () PSG is a key component of HPs strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers.The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HPs business. 4. Executive Summary After this industry analysis, we can see that the computer manufacturing industry in the US is constantly loosing revenue and market share in the world. Almost every business in this Industry (top ranked) are loosing revenue and lessen profitability. The only company that has increased revenue and has actually grown in the last five years is Apple.For this, I would root on Apples executives to maintain their actual Post-PC strategy because it is known that demand for PCs is decreasing w hile demand for other similar electronics such tablets is increase and will continue doing so in the future. I would recommend Apple, as well, to focus a little bit also in extending their portfolio of offerings by including special services and solutions in order to attend the B2B market and gain some of their competitors share in this segment too. SOURCES 1. Bureau of Labor Statistics (http//www. bls. gov/iag/tgs/iag334. htmabout) 2.NAICS CODES (http//naicscode. com/ await/MoreNAICSDetail. asp? N=33411) 3. IBIS World (http//www. ibisworld. com/industry/default. aspx? indid=740) 4. Hoovers (http//www. hoovers. com/industry-facts. computer-manufacturing. 1843. htmlmegamenu_0. html) 5. Gartner Newsroom (http//www. gartner. com/it/page. jsp? id=1893523) 6. PR Web phrase Computer Manufacturing in the US Industry Market research Report presently Available from IBISWorld. August 14, 2012 (http//www. prweb. com/releases/2012/8/prweb9797684. htm) 7. Research and Markets (http//www. re searchandmarkets. com/reportinfo. asp? eport_id=451844=e) 8. Fox Business (http//www. foxbusiness. com/technology/2012/01/12/apple-remains-in-third-place-with-116-us-computer-market/) 9. Yahoo pay HP (http//finance. yahoo. com/q/ks? s=HPQ) 10. Yahoo Finance Dell (http//finance. yahoo. com/q/pr? s=dell) 11. Yahoo Finance Apple (http//finance. yahoo. com/q/pr? s=aapl) 12. The paries Street Journal (http//online. wsj. com/article/SB10000872396390443862604578030391796799174. html) 13. HP Official Web Page (www. hp. com) 14. Dell Official Web Page (www. dell. com) 15. Apple Official Web Page (www. apple. com) 16. Reuters