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Industry Analysis of Hp

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Industry Analysis of Hp
Industry analysis of computer sector

Submitted to Mrs. Indrish KAUR
Submitted by
Priyanka Manchanda
FMS/MBA/152ing
Introduction to Industry
Each business operates under a group of firms that produce competing products or services known as an “industry”. An industry is thus a group of firms producing similar products or services. By similar products we mean products that consumer perceive to be substitutes for one another. Eg. Firms that produce PC’s such as apple, HP, IBM, Wipro, HCL,
Although there are usually some differences among the competitors, each industry has its own set of “rules of combat” governing such issues as product quality, pricing and distribution. This is especially true in industries that contain a large number of firms offering standardized products or services. As such, it is important for strategic managers to understand the structure of the industry in which their firms operate before deciding how to compete successfully. Industry analysis is therefore a critical step in the strategic analysis of firm.
In a perfect world, each firm would operate in one clearly defined industry. However, many firms compete in multiple industries, and strategic managers in similar firms often differ in their conceptualization of the industry environment.
The concept of primary and secondary industries may be useful in defining an industry. A primary industry may be considered as a group of close competitors, whereas a secondary industry includes less direct competitors.
The basic purpose of industry analysis is to assess the strengths and weaknesses of a firm relative to its competitors in the industry. It tries to highlight the structural realities of particular extent of competition within that industry.
Through industry analysis an organization can find whether the chosen field is attractive or not and assess its own position within the industry.

“Computer industry is a collective term used to describe the whole range of

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