Sadasd Essay

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IIM Calcutta Strategic Management Matching Dell December 22nd, 2009 Submitted By: Group A5 – Section A Gautam Adukia 022/46 Ajay Bansal 023/46 Alpesh Chaddha 026/46 Aman Deep 027/46 Amit Gupta 032/46 Amit Nagdewani 036/46 Amol Deherkar 040/46 Ankit Jain 048/46 Avinash Pandit 085/46 Ankit Kumar Singh 404/16 The World Computer Industry The computer industry was highly standardized with most of the desktop machines using Intel architecture and Microsoft operating system. The PC manufacturers assembled hardware and loaded software before selling and thus differentiation based on component quality was not possible. The only differentiation factors present were: brand value (based on the range of products available and quality of the assembled product), and cost differentiation. We can analyze the industry structure by considering the factors of Players, Distribution Channels, Customers and Product Range available: Players: The top four players in the PC market in 2002 were Dell, HP, Gateway and IBM. The 4 market players comprised around 58.8% of the total share. Distribution Channels: The sales were mainly done by the following distribution channel: Direct Sales Force, Internet, Reseller/Distributor, Retail and third party telesales. Customers: They served mainly Large and midsize businesses, government offices. Along with that they also targeted home consumers and educational institutions. Product Range: The industry was taking advantage of economies of scope and looking into the multitude of opportunities. They were also getting into the business of manufacturing Notebooks, Servers, Workstation, Imaging and Printing Devices, PDAs etc. The nature of PC industry is highly competitive mainly because of aggressive pricing which is a major differentiating factor. The following

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