...up. Close to its all-time low, the rupee has companies worried. And the prognosis isn’t bullish. Economists expect the rupee to fall further. The exchange rate of a currency, like most commodities, is determined by the laws of demand and supply. Foreign institutional investors are cashing out and diving into safer investment bets such as US government bonds. This is making dollars scarce and reducing demand for rupees. Concurrently, the spurt in crude oil prices has pushed up demand for dollars India’s import of crude oil. The RBI can intervene and prop up the rupee by selling dollars in the market, but economists do not expect the central bank to manage the rupee’s rate actively, unless it swings violently. “Given recent indications, I don’t think the RBI will actively intervene to arrest the rupee’s fall, unless there is extreme volatility in the currency market,” said NR Bhanumurthy, Professor of economics at Delhi-based think-tank National Institute of Public Finance and Policy (NIPFP). For exporters, a falling rupee (generally considered good as they get more rupees per dollar) comes alongside a drying up of orders abroad. But shrinking world demand would affect orders, especially for India’s handicrafts, gems and jewellery, leather and textile sectors, negating the gains from a weaker domestic currency. India’s exports growth...
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...PESTEL FACTORS FOR JOHN LEWIS |Factor |PES |Affect on Business – good or bad |Evidence from Internet – JL Website | | |TEL | | | |Rise in VAT to 20% |P |B | | |(Value added tax on all goods except food and children’s | | | | |clothing) |E | | | |Greater percentage of people in society getting older |S |? Need to sell products wanted by the elderly | | |Government look on worker owned businesses more favorably |P |G Early this year John Lewis said to be a good | | | | |example of how businesses should operate | | |Low interest rates makes it cheaper to borrow money and use |E |G – if you can can...
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...What, historically, have been Apple’s competitive advantages? From the beginning, customer loyalty has been one of Apple’s competitive advantages. Apple owners were much more attached to their Apple computers than PC users. Early on Apple pushed into the publishing and education markets. They were able to grab half the market for education. Their computers were easy to use, had sharp designs, and high quality. Apple also used a plug and play system with all its own peripherals as a major advantage. But with their own hardware and software, Apple’s computers were very slow and came with very few compatible programs. After Steve Jobs came back to the company, he instilled strong teams and leadership. He put the focus back on innovation by increasing R&D. He also establish Apple’s original strategy of premium products and customer service. He then introduces a website to set up direct sales with customers. Jobs partnered with Microsoft and added USB connectors to become more compatible with other applications and software systems. This eliminated a huge disadvantage Apple previously had. Apple products are also harder to duplicate and substitute because of it’s own proprietary design. Industry foresight has been a huge competitive advantage of Apple. Their innovation has shaped the consumer electronics industry. It has also kept competitors on their toes. Apple sets the standards for the industry. With their customer loyalty, Apple has become a strong brand name. They have...
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...offer, but how did it get to be the household name it is today? Founder of the company, Robert Stephens, was, like all entrepreneurs, faced with an abundance of challenges before and after starting his business. Stephens was also given a great opportunity with the beginning of a trend toward personal computers when he started his business. In fact, Geek Squad had become so successful that it was brought to the attention of Best Buy, which purchased the company from Stephens in 2002 to combat some issues they thought that Geek Squad would be able to fix for them. Although they have been extremely successful up to this point, Geek Squad will need to stay ahead of the game to continue to do so, with the rapidly growing and ever changing technological world. When Robert Stephens was studying computer science, he also worked fixing computers for a research laboratory, and started consulting as well. While consulting he realized that most people needed help using and/or fixing their personal computer. In 1994 when Stephens started the company, it was in high demand because of the increase in the use of the personal computer (PC). The people not only wanted someone to help with their computer problems, but also be on time and help them understand what the problem really is, all while being friendly. When Best Buy purchased Geek Squad in 2002 for $3 million, it wasn’t without reason. Best Buy had been observing some very high return rates for most of its complex products, due to the customer...
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...details to SEC as a requirement. Moreover, going to public was the best way to attract more investors to fund and make it even bigger. So the company finally decided to start its initial public offering (IPO). On May 18th 2012, the news of its IPO hyped many investors and stockholders. Nasdaq even put a huge digital billboard welcoming Facebook on board. The stock was opened up with high price of $38(5) and expected to trade really well through the first day, but that did not happen. The stock price did go up as high as $42 in its opening hours before it settled back toward $38. And the nightmare of falling stock price still goes on and some of the major unforeseen issues of Facebook appeared on a surface. Facebook had been the leading giant of social network, because it had the technology to make SNS website more user friendly than those of its competitors. Then the users started to switch their computers for mobile phones, ever since the IPhone and other smart phones emerged. Regardless of what was happening around, Mark Zuckerberg, the Facebook found, decided to keep improving on the computer-based Facebook, not improving on the mobile-based one. Before Zuckerberg realized, it was too late when so many users were frustrated with many bugs and errors in their mobile Facebook app. Many critics point out that Facebook missed reading the trend in technology. Another macro economic factor deals with fluctuating values of the users. Mark Zuckerberg can control Facebook Inc. but...
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...Dell Computer Company was established by Michael Dell in 1984, and it has grown to be the industry leader in the personal computer industry through aggressive risk taking and cost lowering strategies. The strategic idea that Michael Dell had while starting his company when he was 19 years old has not changed as the company has transformed into a billion dollar corporation. This strategic plan encompasses the aspects of individualized products and direct sales to the end customer, lowering retail costs. (Dell Case Analysis, 2004) The low overhead costs created by their partnerships with suppliers and amazing use of just-in-time inventory help to reduce retail prices, leading to the successes of Dell accumulates today. Down to business approaches, such as being one of the first companies to make e-commerce and internet usage a centerpiece in their corporate strategy has also benefited the personal computer leader. (Dell Case Analysis, 2004) The explosion of business over the internet helped Dell tremendously. As they followed the vision of built-to-order personal computers and direct sales from the company's inception, the internet gave computer buyers a more convenient medium to purchase Dell computers. The quality control measures Dell undertakes also promote customer loyalty. As purchasing products over the internet became more popular in the late 1990's, there is a noticeable increase in Dell's sales and market share during the same period. Dell's computer prices were already...
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...Vanya Sanjar | | | 1. Analyze the Personal computer industry. Why did Apple struggle historically in PC? Market Share and Segments The top four PC vendors- Hewlett Packard, Dell, Lenovo and Acer- accounted for 53.6% of the market shares worldwide in the PC Industry. Industry leadership had shifted numerous times. Hewlett Packard emerged as the leader after the acquisition of Compaq Computer in 2002. Dell held the second largest market share of 12.6% with its distinct combination of direct sales and build-to-order manufacturing (popular in the corporate world). China based Lenovo was its greatest strength was its dominant position in China, the fastest growing PC market in the world, where it commanded 35% share. Acer was another prominent brand whose strong selling point was its net books and it acquired brands like Gateway in the US and Packard-Bell in Europe to increase its market presence. Looking at another dimension, the PC buyers fell into five categories: home, small and medium-sized(SMB), corporate, education and government. Home computers represented the biggest segment, accounting for nearly half of the worldwide PC shipments. While all buyers cared about price, home consumers also valued design, mobility, and wireless connectivity, business consumers balanced price with service and support, and education consumers depended on software availability. Evolution of the PC Industry The Personal Computer is the one innovation has had a profound impact on...
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...focused on manufacturing low cost computers, working together with IBM, cooperating with Novell and Intel to create a new operating system that run on Intel platform. However, these projects had not achieved success until Steve Jobs became the CEO and refocused the original strategy for Apple. Jobs was able to create a competitive advantage for the company through restructuring and innovating software, hardware, marketing, digital asset management, retail strategy, and product differentiation. With these advantages, Apple was saved from bankruptcy and has gained a positive reputation, more customers, and large profit margin. The struggle of Apple incorporate in the PC industry was mostly due to the company’s inability to utilize Porter’s Five Forces. Porter’s Five Forces analysis is a powerful tool for understanding a company competitive position in the industry. The first three CEOs of Apple (Scully, Spindler, and Amelio) failed to address these forces and led the company to the edge of bankruptcy, which largely contribute to the reason why Apple’s PC industry suffer more than its iPod business. Intensity of Competition The present of several large PC manufacturers such as IBM, Dell, Hp, Acer, etc. substantially increases the intensity of competition. Additionally, when the Windows operating system combined with an Intel processor, it created a new standard known as “Wintel” which dominated the PC industry. This trend turned every personal computer into a commodity, and the competition...
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...out in the near future and are always looking to advance in the technology field by bringing out the latest and most advanced products. Background Dell was founded in 1984 by Michael Dell, the computer industry's longest-tenured chief executive officer, on a simple concept, that by selling computer systems directly to customers, Dell could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory every three days on average. Long the world's largest direct-sale computer vendor, Dell Inc. is now also the leading seller of computer systems in the world, capturing a global market share of more than 15 percent. Dell markets desktop personal computers, notebook computers, network servers, workstations, handheld computers, monitors, printers, high-end storage products, and a variety of computer peripherals and software. The firm also has moved into the consumer electronics arena, offering LCD televisions, projectors, and other products. Dell manufactures most of the products it sells,...
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...Consumer Electronics Industry: Tablets Over the next Decade 1. Introduction A tablet PC is a wireless, portable personal computer with a touch screen interface. The tablet form factor is typically smaller than a notebook computer but larger than a Smartphone. Bigger and Brainier than a smart phone but smarter and sleeker than a net book, tablet computers have revolutionized the way in which modern day consumers experience and fulfill their computing and communication needs. The credit of pioneering this field and creating the market segment goes to Apple with launch of i-pad in 2010 and once again proving its capability of a leading innovation driven firm which redefines the course of overall computer industry as a whole from time to time. Since then the tablet sales have seen unexpected momentum in terms of growth in sales figures worldwide with apple emerging as the largest supplier till date as compared to all others. However, Android based tablet PCs are expected to take over Apple’s share in the coming years. The world has seen aggressive competition among tablet PC manufacturers after the launch of iPad from Apple. Within five months of the release of iPad, Samsung launched its Samsung Galaxy Tab to compete with Apple. Since then, the tablet PC manufacturing industry has seen the emergence of numerous players. Most tablet manufacturers such as Asus, HP, and Lenovo among others released their models of tablet PCs in quick successions, but none...
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...In the mid-2000s, oil prices began to surge due to an increase in global oil consumption. Since oil production in conventional fields could not meet demand, oil prices continued to rise. With oil prices increasing, energy companies saw it profitable to begin obtaining oil from shale formations that were traditionally hard to drill using techniques such as hydraulic fracturing. Such techniques led to a boom in unconventional oil production. Due to these techniques, the United States alone has added 4 million barrels of oil per day to the global market since 2008 (Figure 1). However, such an increase in supply was initially masked by political conflicts in key oil regions (Figure 2). As oil companies in the U.S. continued to see productivity growth, the global market began to drastically change. Oil demand flatlined as economies weakened and cars became more fuel-efficient; this ultimately led to a surplus of oil (Figure 3) that caused oil prices to drop. While companies have utilized hydraulic fracturing (“fracking”) to increase oil production in the U.S., they now are starting to feel monetary constraints due to increased marginal costs. Fracking a well is extremely sensitive to the law of diminishing returns, with output falling about 65% after the first year, causing new wells to be constantly drilled in order to maintain production (Plumer, 2015). However, the decreasing marginal product does allow companies to quickly adjust to falling oil prices by scaling back on new...
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...it is seen to have about 83percent through the iTunes. The leading being the 99.4 percent on mobile applications and 99 percent of TV show downloads. The iPad’s allocation on the tablet computer market is about 94 percent. The iTunes Store applications that allow for song streaming service and download has had tremendous impact in the market. The company termed the move to have a 30 percent cut of the 20 percent from the iTunes sales as economically untenable. This has seen the company seek collaboration with other market players to determine the appropriate legal and business response to the authority action. The company has stabilized since the 1980s and 1990s market hopers during Mac-vs.-Windows wars. The company now enjoys large market share in the iTunes/iOS market niche than Microsoft. Apple enjoys enormous control over the hardware, operation systems, online stores and the third parties terms of business. The company defines the market to comprise of all digital and print media where it ensures that the customers’ needs are well taken care of to their satisfaction. Apple to retain its uniqueness has ensured that its IOS applications are only distributable through its Application Store. Its just via the Application Store or online that the Mac application can be bought. Application keeps on reviewing its application code to the Application Store through its research and development team. This is meant to ensure that the company collects the payments from the end users who...
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...In the mid-2000s, oil prices began to surge due to an increase in global oil consumption. Since oil production in conventional fields could not meet demand, oil prices continued to rise. With oil prices increasing, energy companies saw it profitable to begin obtaining oil from shale formations that were traditionally hard to drill using techniques such as hydraulic fracturing. Such techniques led to a boom in unconventional oil production. Due to these techniques, the United States alone has added 4 million barrels of oil per day to the global market since 2008 (Figure 1). However, such an increase in supply was initially masked by political conflicts in key oil regions (Figure 2). As oil companies in the U.S. continued to see productivity growth, the global market began to drastically change. Oil demand flatlined as economies weakened and cars became more fuel-efficient; this ultimately led to a surplus of oil (Figure 3) that caused oil prices to drop. While companies have utilized hydraulic fracturing (“fracking”) to increase oil production in the U.S., they now are starting to feel monetary constraints due to increased marginal costs. Fracking a well is extremely sensitive to the law of diminishing returns, with output falling about 65% after the first year, causing new wells to be constantly drilled in order to maintain production (Plumer, 2015). However, the decreasing marginal product does allow companies to quickly adjust to falling oil prices by scaling back on new...
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...INTRODUCTION Apple is an American multinational company which designs and manufactures electronic products and sells them all around the world. It is a company which has not only an been asset to the technological world of computer science since its foundation in 1976, but it has also developed into one of the most profitable corporations, with a brand loyalty like no other. It has succeeded to pose as one of the technological pioneers in micro computing for consumers of all ages. Apple’s stable financial position has permitted them to enter other markets and diversify away from computing, into markets such as music, mobile phone and tablet. With the ever changing economy, Apple will continue to innovate and update their products chnologies in order to keep From a small firm to become a big one and then go on to become the biggest among all has only been achieved by a few brands. The financial success of such brands depends heavily on combined efforts of their financial strategies and their marketing efforts. One thing common between all these successful brands is a high degree of brand loyalty. Companies now understand that marketing plays a major role in their overall success and so now have dedicated chief marketing officer. They understand the functions close to the customers are either sales or marketing. Sales is a direct interface among customers and products offered by companies where as marketing is an indirect interface between customers and the company. In today’s...
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...INTRODUCTION: Although Dell (“Dell” or the “Company”) is one of the medium size players, the Company is one of the most profitable and fastest growing Companies in the industry. The industry is characterized by several different products such as computers, imaging, printing systems, information technology and services and solutions. The industry has seen double digit growth for the last 10 years but as 2001 came to an end, the industry is softening. Amongst its competitors, Dell has been very profitable with its 2001 ROE of 38.72% and growth in earnings of 31% compared to the next fasting growth Competitor, IBM with earnings growth of 5.0%. The rising ROE was driven by increased profitability, higher asset turnover and increased leverage in the business. Dells cash conversion ratio was also superior to its competitors allowing them to generate cash faster than their competitors to reinvest in the business. The Company has a healthy balance sheet with little debt and sizable cash amounts (largest % to assets in the industry with 40.48% in 2001). Dell is an outperformer in the industry due to its direct sales business model. This report will review the financials of Dell Computers in relation to its competitors and discuss the competitive position of Dell in the market place. It will also detail how the Company has changed from 2000 compared to 2013. As Dells most direct competitor IBM’s performance was compared to Dell to understand the reason for Dell’s outperformance....
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