The computer/technology industry has many key players with two of the major competitors being Dell and HP. The computer industry has come a long way since its first inception with the invention of Electronic Numerical Integrator and Computer in 1946. This industry is comprised of many items such as computers, monitors, printers, scanners, mainframes, servers, electronic computer components, networking and workstations to name a few. The industry started a major growth phase in the 1980’s with the production of the personal computer and has grown every since with many new products introduced. Innovations within this industry have had positive rippling effects to outside industries, from manufacturing to banking. While the United States market is fairly saturated and mature, the computer/technology industry is very much in the growth phase on a global basis. The drivers behind this growth are both innovations in technology and especially increased consumer spending in Asia and Africa. The international value of this industry is expected to grow and surpass $620 billion in 2011, roughly a 27% increase from 2006. Dell and HP possess major market share within the computer/technology industry due to brand name loyalty, advanced supply chain management techniques and producing innovating products for an affordable price. Dell vs. HP Strategies
Dell and HP operate in a competitive environment to gain market share at segmented price intervals. Over the last decade we have seen the price of the average computer go from close to $2,000 to less than $1,000. In part, pressures to add customers have lead to price wars between the two competitors. However, the price wars have not affected the quality of the products in those lower priced tiers. Both firms have increased marketing efforts to enhance their brand recognition and strived to reduce cost through improved supply chain management and technology innovation. Both companies...
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