...Report on near investigation of showcasing procedures utilized by Dell and HP Near investigation of Dell and HP Presentation: From the creation of first PC by Charles Babbage in 1832, PC industry has made considerable progress. Industry watched emotional development after the progressive innovation of microchip in 1959. The interest for PCs and related gadgets is expanding each year. PC industry is profoundly focused and there are a few organizations contending energetically for all of piece of the pie. Dell and HP are two major US based organizations which are significant players in the PC business with a differing arrangement of items. The business incorporates items like desktop and PCs, gadgets and PC fringe gadgets. This report concentrates on the advertising techniques connected by both the organizations in this industry. Examination will be finished with the assistance of some vital promoting measurements and after that recognize the focusing on and situating techniques. Market capitalization: Dell and HP are two goliaths in the PC business and reliably demonstrate their vicinity among the main three. Dell enrolled an income of 59 billion US dollars in the year 2014-15 (Dell 2014 Annual Report to Customers, 2014). In the second from last quarter of 2015 it had a piece of the overall industry of 13.8%. Its adversary HP enrolled income of 111 billion US dollars from its different arrangement of items and benefits and appreciates a piece of the overall...
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...three years Apple is able to make more profit then the cost that it takes to make its products. Furthermore as with every growing company comes more expenses so their expenses have risen from 2009 to 5,482 million to 10,028 million in 2011 (Apple INC, 2011). Their expenses are counteracted and accounted for by their net income which triples from 2009-2011 from $8,235 to 25,922 million (Apple INC, 2011). The net income is most important when trying to analyze a company’s financial health. Apple’s financial health is reasoned profitable because the total earnings when subtracted by its cost is higher than it was in the past three years. Hewlett Packard’s net sales for the year ending 2009 are $114, 552 million and for 2011 $127,245 million (HP 10k, 2011). HP’s net...
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...Matching Dell Jonathan S. Leonard Two Fundamental Strategies Beat them on costs Sidestep them with differentiation Two Fundamental Strategies Dell relentlessly drove down costs Methods Corporate Financial Comparisons? These are clouded by differences in Business Organization, Product Mix, Industry Mix, Pricing, Cost Allocation Product level Comparison: Apples to Apples Five Forces Analysis Bargaining Power of Some Suppliers (very high) Proprietary standards + customer desire for compatibility Microsoft and Intel positioned to extract profits from industry Other inputs are commodities Bargaining Power of Customers (Low) Resellers and retailers have some grip on end-user relationships, giving them ability to extract price protection, but users more sophisticated (and less in need of assistance) over time Millions of customers Five Forces Analysis Intensity of Rivalry (very high) Wintel standards little distinguishes machines of leading companies except price vigorous price competition Growth of processing power outstrips growth in need for processing intense excess capacity and saturation fight for market share Threat of new entry (high) Capital costs of mfg facility low Stream of low cost entrants (white-box makers) and contract manufacturers Absolute cost advantage difficult to maintain since inputs are available at fixed prices Threat of substitutes (growing) PDAs, phones,etc. Alternative sales methods (online) ...
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...FINANCIAL ANALYSIS OF DELL AND HP Executive Summary 2 This financial analysis report examines two high profile competitors, Dell and Hewlett Packard (HP), within the computer/technology industry in order to evaluate company performance and financial health. Overall company strategies were reviewed and considered along with the financial analysis to come to a conclusion for recommendation of investment. The reports introduction gives an overview to the computer/technology industry and expands on the strategies executed by Dell and HP. The financial analysis covers both companies’ common-size income statements and balance sheets, comparative income statements and balance sheets, and various financial statement ratios such as liquidity, capital structure and solvency, return on investment, operating performance, asset utilization and market measures from year 2006 to year 2010. A pro forma look ahead estimated financial performance is generated for each company and assumptions explored that helped derive the financial data for the pro forma. Conclusions are drawn from the above stated financial analysis as well as areas for improvement and investment recommendations. Dell and HP are both well known companies competing in an ever evolving and expanding industry. The industry is in every segment from personal to educational to professional. HP is a more mature company having been founded in 1939, but Dell made waves throughout not only the computer/technology industry but in...
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...Matching Dell - Case Summary by jaina2004 | studymode.com Matching DELL History: IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42% IBM Strategy : • Purchase PC components as against manufacturing inhouse (Main frame) • Open Architecture : OS – Microsoft, Microprocessor – Intel , reason, to encourage application developers and enhance Peripheral market • Sales : o Largely corporate clients - thought its huge sales force o Retail clients through value added resellers – handled, installations, configured SW,customer networks and service part of responsibility • Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84, • Competitors strategy :: use resellers for large corporate accounts, due to lack of sales force • 1986- IBM moves to propriety architecture with PS/2 line and rejects 386 chip • 1980-90 – PC performace improved and chip price declined, o New technology advancement of 386DX and Pentium II processors were significant o Windows 3.0 launched in 1990, commonly called Wintel architecture o PC Sales declined in 1990 due to US recession • Post 1990 o Demand picks up due to economic growth, and technology like computer Networking, email and WWW. o PC prices decline to less than 499USD, 45.5% of US household owsn PC in 1998 â–ª Modular architecture prevalent for HW and SW, PC differed depending on configuration â–ª Most HW components sourced my numerous companies...
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.................... 8 Financial Analysis ........................................................................................................................ 9 Overview ................................................................................................................................... 9 Chart 1: Stock Performance Over 5 Years............................................................................. 9 Chart 2: Basic Financial Information ................................................................................... 10 Revenue, Income, and Cash Flow ....................................................................................... 10 Chart 3: Revenue vs. Net Income ........................................................................................ 11 Chart 4: Revenue vs. Cash Flow from Operations...
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...Business Analysis II, Apple Inc., Dell Inc., & Microsoft Corp. Cheryl Alcantara Online Main/MGT 521 Jason Miller July 17, 2011 Business Analysis II, Apple Inc., Dell Inc., & Microsoft Corp. Cheryl Alcantara Online Main/MGT 521 Jason Miller July 17, 2011 08 Fall 08 Fall Technology includes items like the telephone and computer. “The computer is capable of handling precisely quantified information much higher speed than the unaided human†(3 International conference Promoting Business Ethics) and can be “compiled and processed by a computer is quite beyond the ability of any human to digest†(the effects of Technology on Business, 2011, p.1). “Looking at product technology we could say that engineers and researchers have with time improved upon the processes for researching and applying new technologies in creation of new products that meet customers needs and demands†(Zayas-Quinones. 2006, p.1). Examples of how technology affects processes, is global business and the tool of technologies by “hardware, software, databases and telecommunication†(Zayas-Quinone’s, 2006, p.1) and the processes in different areas. Technical advances are made through globalization in business such as using telecommunications through “local, wide and global scale private networks and even that public artery†(Lippers, et. al, 2006, p.1). The integration of a systems and support operations include gender and nationality. The...
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...reviewer(s), etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell: Dell’s Key Strategic Issues At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry: Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal...
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...etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell : D ell’s Key Strategic Issue s At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry : Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that ...
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...Case Analysis 1: Sara Lee vs Dell vs JCPenney With the advance of technology and the development of society, the competition in industry is increasing intense. If there is no any innovation and just standstill for a company, it will be out of business quickly and be replaced by other competitors. Under this condition, every company wants to make wise strategy to gain profits and strength their competitiveness in the industry. Information technology plays an important role when companies develop strategy. Overview of the problems each company is facing For Sara Lee Bakery Group (SLBG), they delivered fresh-baked goods to their retailers directly. The delivery people needed to count at the retailer’s back door. But, these retailers wanted to reduce labor cost, they reduced the number of hours their back door is open. So, for SLBG, they need more trucks, more time to accommodate the limited door open time. Obviously, it will increase large amount of cost to do this. For Dell, Dell has a short delivery cycle after received customer’s order. Dell has a demand-pull value chain and it could decrease cost by not make too much computer ahead of schedule. However, HP’s local store availability and develops a number of unique features that are highly demanded by customers help HP to fight Dell for the top position successfully. For JCPenney, there was about 10% money they spend, half billion dollar goes transaction. The CEO of JCPenney thought this part of money could use to develop...
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...technological world that is rapidly expanding, desktops have become out-of-date, and consumers are demanding laptops with grand capabilities fit into a small package. The vast amount of options out there give consumers a variety of options to choose from. Consumers demand different qualities from their laptop whether it is processing, durability, battery life, display, and a variety of other options. This paper will discuss the present displays being used in stores to promote the products, what consumers voice in terms of what they want in a laptop, and primarily what brands can do to further help their sales. For this specific paper, I will be looking at Dell as the targeted brand. Dell was once the dominant presence is the computer industry, but their market share is diminishing constantly. My goal in this research is to determine what Dell is doing wrong if anything, and what they can do with their brand and products to regain their lost market share. The first store I stopped out to see their laptop display was Best Buy. Best Buy is one of the leading electronic stores in the nation, and is on the market as one of the top retailers that consumers shop at for electronics. The clerks there are tech savvy, and are helpful in answering any questions consumers may have as they are highly educated on their wide range of products. The computer center was located at the back of the store. The first thing I saw when walking towards it was a huge Windows display. The display was well lit...
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...9 Acquisitions 9 Supply Chain Dependencies 10 Flat R&D spending and less patents 10 Financial Performance 11 HP vs. Industry 12 Non-Financial Performance 13 Opportunities 13 Cloud Computing 14 Emerging Markets 14 Supply Chain Improvements 15 Threats 15 Rivals 15 Smartphones 16 Economic Slowdown 16 Current Strategy 17 Business Level Strategy 17 Corporate Level Strategy 19 Recommendation 20 Risks 22 Implementation 24 Appendices 26 Appendix A: HP Company Mission Statement 26 Appendix B: Worldwide Portable PC Shipments (2011-2012) 27 Appendix C: Worldwide Desktop PC Shipments (2011-2012) 28 Appendix D: Worldwide Tablet Computer Shipments (2011) 29 Appendix E: SWOT Analysis 30 Appendix F: The Pathfinder Model 31 Works Cited 32 Company Profile Hewlett-Packard first began its modest operation in 1939, when its founders Bill Hewlett and Dave Packard began making its first product, the audio oscillator. In the early years, the company often faced a lack of focus on its products and created everything from electronic products to agricultural products. In 1980, HP manufactured its first PC. From there, Hewlett-Packard (HP) grew to be the world’s leading PC manufacturer. (HP Interactive Timeline) The company is headquartered in Palo Alto, California, but bases its U.S. operations in Houston, Texas. HP conducts business in over...
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...HP – STRONG BUY Equity Research • IT • 19 August 2011 • Jyske Markets Accounts This is a case recommendation. The company will be included in our equityresearch universe as long as it holds price potential justifying a BUY recommendation. When this is no longer the case, we will discontinue our coverage although our recommendation is ACCUMULATE, REDUCE or SELL. HP price fall is overdone We restate our STRONG BUY recommendation for HP and see yesterday’s dramatic price fall as an attractive opportunity to buy. This particularly applies to investors who are patient enough to wait for better market conditions/macro-economic improvement. HP lowers its outlook: as feared, HP (like Dell (STRONG BUY) earlier in the week) last night downgraded its full-year outlook. It was, however, a relatively moderate downgrade since the sales forecast was lowered by 1.6% and EPS by 3%. Whereas HP previously guided 2011 sales and EPS at USD 129bn-130bn and USD 5.0, respectively, HP now guides USD 127.2bn-127.6bn and USD 4.82-4.86, respectively. HP’s forecast is still a shade better than we had estimated (USD 127.6bn and USD 4.7). The reduced forecast reflects a sluggish willingness to buy among private business customers and that corporate customers are now more hesitant due to the rising macro-economic uncertainty. For Q4, HP guides sales at USD 31.1bn-32.5bn as well as Non-GAAP EPS of USD 1.12-1.16 compared with consensus at USD 33.9bn and USD 1.30, respectively. In addition, HP announced...
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...MacCormack and Kerry Harman, 9-600-097, June 2000. CASE 5: Product Development at Dell CorporationCorporation, Stefan Thomke and Vish Krishnan, 9-699-010, January 1999 Case Presentations Nov 3 – Nov 10 – Nov 17 Nov 24 Dec 1 – Case 1 Case 2 Case 3, Case 4 Fall Break Case 5 Case Assignment Team 1-Case 4 Team 2-Case 3 Team 3-Case 4 Team 4-Case 1 Team 5-Case 2 Team 6-Case 5 Team 7-Case 5 Team 8-Case 3 Team 9-Case 1 Team 10-Case 2 Team 11-Case 5 Each team to read all case studies and prepare a 25-30 minute class presentation on power point on ONLY the case study assigned to the team - addressing the questions listed below. You may turn in the ppt presentation with the speaker notes or a word document answering the questions. The questions are guidelines for the team to address in the presentation. Each team should have a few overview slides on the case to introduce the case to the class. All the students are expected to have read all the cases. All the ppt from the teams will be available to all the teams. The lessons learnt from the cases are included in the quiz. 1) Hewlett-Packard: The Flight of the Kittyhawk a. Was the approach to product development for the Kittyhawk the same or different compared to previous HP disk drive product developments and why? b. Was the approach to project management of product development projects for the Kittyhawk the same or different compared to previous HP...
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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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