Computer Manufacturing Industry Analysis

1. ENVIRONMENTAL ANALYSIS a. Definition of the persistence The following subscribe presents a brief analysis of the calculator and Electronic Manufacturing sedulousness in the USA (NAICS 334 North American Industry Classification System) with special reduce on the Personal data processors sub-sector. I made the ratiocination to focus on just one of the sub-sectors due to the large kitchen range of the general sedulousness. Industries in the calculator and Electronic Product Manufacturing subsector group establishments that manufacturing data processors, reckoner peripherals, communications equipment, and similar electronic products, and establishments that manufacture portions for such products. (Bureau of cut into Statistics) Given the old description of the general Industry, I can in a flash go further in the definition of the real point of field of force for this paper, which is the Computer Manufacturing, clustered in laptops, PCs and servers. This attention manufactures and/or assembles personal computers (PCs), laptops and servers.Operators typically purchase computer components (e. g. m otherwiseboards and graphics cards) from dedicated manufacturers in other industries (IBIS initiation report 33441a, Semiconductor and Circuit Manufacturing). This manufacture does not include tablet computers, nor does it include manufacturers of computer monitors, mice, keyboards and printers (IBIS World report 33411b, Computer Peripheral Manufacturing). When covering the whole effort, The US computer manufacturing perseverance includes roughly 1,200 companies with combined annual gross of round $75 billion.Major companies include dingle, Hewlett-Packard, and IBM. (Hoovers 2012) The computer manufacturing manufactures taxation is divided and measured fit in to distri preciselyively of the sub sectors that conform it. Personal computers account for nigh 40 part of industry revenue mainframes and servers, 13 percent and storage devices, about 10 percent. (HOOVERS) slice respecting to the sub-industry in which this paper is foc exercised (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 Apple. The total amount of units sold for the industry must be taken in consideration from the quantity of units shipped in the last year foregoing United States PC Vendor Unit Shipment Estimates for 4Q11 (Units) caller 4Q11 Shipments 4Q11 foodstuff Shargon (%) 4Q10 Shipments 4Q10 Market Sh atomic number 18 (%) 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 Apple 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 collection 1,756,838 . 8 1,982,477 10. 4 -11. 4 Others 4,014,644 22. 4 3,583,418 18. 8 12. 0 amount 17,929,764 100. 0 19,061,005 100. 0 -5. 9 Note Data includes desk-ba sed PCs, rambling PCs, including mini-notebooks entirely not media tablets such as the iPad.? Source Gartner (January 2012) Comparing the studied sub-industry cores with previous years, profit and revenue have been constantly decreasing and the annual offset in the last 5 years have been negative for the industry in about 5. 1%. Analysts from IBIS project that this will continue fall for the future 5 more(prenominal) than years.Nonetheless, The industry is capital-intensive annual revenue per employee is about $460,000 (HOOVERS), while the whole Computer Manufacturing Industry in the US counts with well-nigh (in thousands) 1,099. 9 employees. b. Internal and External Analysis OPORTUNITIES -There is a mounting consumer consume for PCs and tablets. -Their rapid growth (of the technicalize) suggests that they will become even more distinguished to the economies of all three North American countries in the future (Bureau of labor movement Statistics 2012) -The proliferatio n of cloud compute will prompt companies to increase their server investments (IBIS 2012)THREATS -Industry profit will continue to fall because of intense price arguing (IBIS World 2012) -TheComputer Manufacturing industryis being rapidly supplanted by seconds, oddly from China. (PR nett 2012) -Imports are a threat for local manufacturing revenue. While import penetration in this industry stood at 50. 7% in 2007, imports are expected to satisfy an estimated 68. 6% of domestic demand in 2012, (IBIS World 2012) -While the emergence of sweet products and run will boost industry performance, US manufacturers are not expected to produce the acceptd ironware (locally). (PR vane 2012) -() Tablets will cut into industry revenue since they are manufacture abroad and are a competing force to domestic computer manufacturing. (PR net 2012) -Computer and peripheral equipment prices fell 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 highly globalized food market, bringing together components that are manufactured worldwide for assembly in a single location.The denseness of computer manufacturing facilities near major ports comes as no surprise. With the widespread use of lean-manufacturing protocols, computer manufacturers heavily favor locations that minimize delays in getting products to market, not to mention shipping expenses. (IBIS World 2012) -Fortunately, PCs are not the only products in this industry, and industry profit, which includes computers and more profitable products, is expected to account for 3. 8% of revenue in 2012. (PR Web 2012) WEAKNESSES The profitability of person computer companies depends on purchase and production efficiencies, and on technological expertise. (HOOVERS 2012) -Computer manufacturing and design withal require highly-educated employees (IBIS World 2012), thes e are very hard to find, especially in the similar area of the business offices. -As a result of offshoring by US-based companies and change magnitude 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 splendid and variable. . Customer 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 blamed on a lack of demand. In fact, the share of US households that professs at least(prenominal) one computer increased by 7. 5 percentage points from 2007 to 2012. While demand has grown, fierce competition and widespread product homogeneity (the result of computers being assembled from standardized components) have led to falling prices and profit margins (PR Web 2012)The identified target markets/ segments for the Computer Manufacturing Industry are the following 1. erect incorporated customers (B2B) Big companies 2. Small and medium 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 knockout within its most revenue-significant businesses due to the top 50 companies are trustworthy of about 90 percent of the total industrys revenue. opposition from abroad has tightened profit margins and prices on mass-market computer systems. Consequently, most of the industrys largest players operate in several related industries to diversify their revenue sources, with a particular vehemence on the highly profitable opening move segment and Information engineering (IT) services. Currently, Hewlett-Packard (HP) and dingle are the largest US-based computer manufacturers, followed by Apple. The total revenue and market share of personal com puters for the last year, regarding the top 3 companies in the industry is . Hewlett Packard PC Market Share 23. 1% innate Company tax (Jul 2011-Jul2012) $122. 52B 2. dingle PC Market Share 22. 4% Total Company Revenue (Aug 2011-Aug 2012) $60. 30B 3. Apple PC Market Share 11. 6% Total Company Revenue (Jun 2011-Jun2012) $148. 81B Brands Description Hewlett Packard Hewlett-Packard Company and its subsidiaries provide products, technologies, software package program, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide.It divides in several segments according to their offerings Personal Systems Group segment (commercial personal computers, software and services for the commercial and consumer markets), Services segment (consulting and outsourcing to businesses), Imaging and Printing Group segment (consumer and commercial), opening Servers, Storage, and Networking segmen t (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 trade Intelligence Solutions.The follow was founded in 1939 and is headquartered in Palo Alto, California. They serve more than 1 billion customers in more than 170 countries and have approximately 349,600 employees worldwide. HP defines its function in set out handle this We explore how technology and services can help people and companies address their problems and challenges, and realize their possibilities, aspirations and dreams. We apply new thinking and ideas to create more simple, valuable and trusted experiences with technology, continuously amend the way our customers live and work. Hewlett-Packard HP Key Positioning You + HP pull it matter. At HP we dont just believe in the power of technology. We believe in the power of people when technology whole wo rks for them. To help you create. To make the digital tangible. To harness the power of human information. 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 desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, as well as servers and networking products.The company also offers several technology solutions, systems, software and specialized services. The company sells its products and services right off through its sales representatives, telephone-based sales, and online sales and through retailers, third-party solution providers, system integrators, and third-party resellers. It serves corporate businesses, law enforcement agencies, small and medium businesses, consumers, and public institutions that include government, education, and he althcare organizations. Dell Inc. was founded in 1984 and is headquartered in Round Rock, Texas.Dell describes its function in society like this In all we do, were focused on delivering solutions to enable smarter decisions and more effective outcomes so our customers can overcome obstacles, achieve their ideas and pursue their dreams. supra all, we are committed to the superior long-term value they need to grow and thrive. Dell Key Positioning Simple and inexpensive information technology for everyone They are focused on making information technology affordable for millions of customers around the world. As a result of direct relationships with customers.They are outmatch positioned to simplify how customers implement and maintain information technology and deliver hardware, services, and software solutions tailored for their businesses and homes. (MBA Knowledge Base 2012) Apple Apple Inc. , together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computers, and 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 founded in 1976 and is headquartered in Cupertino, California. Apple defines its function in society like this Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. (Apple) A pple Key Positioning Innovation leaders belligerent Advantage and Strategy of each Apples Post PC Strategy They want to be the dominant 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.After you are satisfied with that experience, you start to wonder why you are stable using a PC versus a Mac or MacBook aviation 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 cartridge clip as they can present a higher-quality user experience than Apple. That talent be a long time. (Forbes 2012) The accelerating popularity of mobile computing devices such as Apple Incs iPadhas been eroding PC sales for years.To combat the erosion in sales to consumers, as well as dwind ling margins as companies fight 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, giving 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 now finds itself lagging larger rivals like HP and IBM in the operate to become one-stop shops for corporate IT needs. (Reuters 2012) HPs Strategy HP straightaway announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has stubborn 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 P SG 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 wait 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 decreasing profitability. The only company that has increased revenue and has actually grown in the last five years is Apple.For this, I would recommend Apples executives to maintain their actual Post-PC strategy because it is cognize that demand for PCs is decreasing while demand for other similar electronics such tablets is increasing and will continue doing so in the future. I would recommend Apple, as well, to focus a little slit 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/search/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 Article Computer Manufacturing in the US Industry Market Research Report Now Available from IBISWorld. opulent 14, 2012 (http//www. prweb. com/releases/2012/8/prweb9797684. htm) 7. Research and Markets (http//www. researchandmarkets. 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 Finance 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 Wall Street Journal (http//online. wsj. com/article/SB10000872396390443862604578030391796799174. html) 13. HP authorized Web Page (www. hp. com) 14. Dell Official Web Page (www. dell. com) 15. Apple Official Web Page (www. apple. com) 16. Reuters