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Example research essay topic: Technological Advancements Hewlett Packard - 996 words

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Three of the most influential factors in home PC ownership were education, income, and children in the household. Consumers are becoming more computer and component literate. Companies are investing large amounts of money into network developments. The low unemployment rate allows more people the opportunity to purchase novelty items.

Top five computer companies in 1999 ranking according to market share: Compaq (19. 1 %), Dell (10. 3 %), Packard Bell NEC (8. 2 %), IBM (8. 0 %), Hewlett-Packard (7. 1 %). 1) Compaq sells almost exclusively through retailers. 2) Their greatest market strength is among Fortune 1000 companies. 3) They acquired Digital Equipment Company (DEC) in order to become a global supplier of computer hardware and network 4) Compaq offers a wide range of servers. 5) The DEC acquisition gives Compaq an advantage in the computer-networking segment, which will look very appealing to large corporations. 1) IBM is the market leader in both entry and midrange servers. 1) H-P is the global leader in printers. 2) Their strong global reputation has helped them grow within the 3) H-P has teamed-up with Intel and are expected to use cutting edge technology that will boost the H-P name. 4) They are the market leader in revenue, units, and growth in the 5) H-P markets over 25, 000 products. Large drops in the prices of computer components allowed PC makers to lower their prices. These lower prices lowered the profit margin on PCs. The sales of servers are the fastest growing segment in the PC industry. Dells competition is shifting their strategy to a build-to-order manufacturing style, in order to lower inventory costs and to speed up the delivery of new models to the market.

There are intensive costs required to remain competitive in the computer industry due to consumer demand for innovations and product developments to meet their changing needs. Competition in the industry is based on such variables as price, quality, product design, product innovation, brand-name reputation, size and strength of retail dealer networks, and after sale service. Each major computer company spends millions of dollars per year on advertisements. This also creates a barrier to entry. Competition based on low PC pricing is expected to intensify.

Technological advancements in computer components are being produced every three months. With increased technological advances, component prices are drastically falling, causing the profit on PCs to shrink. Computer companies must invest in a lot of R & D in the server segment, where the profits are high, to make up in lost revenues. With the increase in Internet usage, more companies will have the opportunity to sell directly to the end user. Advancements in electronic data interchange will give suppliers up-to-the-minute inventory information; create a stronger bond between companies and their suppliers. Several Asian economies are in trouble, causing international sales to fall.

With the sharp appreciation of the U. S. dollar, PCs are more expensive to Asian buyers. A stronger dollar hurts the foreign earnings, and a weak one helps. Asian producers that build these computer components are feeling the effects of lower prices and smaller profit margins. Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve.

In doing so, Dell will meet customer Individual and company accountability Best-in-class service and support Flexible customization capability Dell expects the sales of servers to become about 50 percent of their revenue by 2001. Dells goal is to get its inventory turn ratio down to three days. The companys goal is to sell 50 % of its sales on the Internet to all of their large customers. Dell expects to process half of their transactions over the Internet by the year 2000. The CEO and Chairman of the Board is Michael S. Dell.

Michael Dells management team consists of two vice chairman, twelve senior vice presidents, two functional area vice presidents and one counselor to the CEO and director. Dell appears to have more of a top down management structure. Dell Corporation employs 35, 800 people globally. Dell's success directly impacts each and every employee at the company, whether through stock options, profit-sharing, incentive plans (for eligible employees), customer satisfaction, or career opportunity. Dells employees are known for exhibiting precision, analysis, and attention to detail. Work activities are organized around teamwork; these teams work in cells, rather than individually.

Nearly 70 percent of Dells systems are sold to government entities and large businesses. Dell provides their corporate accounts with a custom website made especially for them. These web sites provide corporate pricing and information on technological advancements made in the industry. Forty to 50 percent of Dell's sales are Web-enabled Finance. Dell attempts to cover all the major price points of the market segments by using different product lines and powerful on-line merchandising, thereby achieving a greater market penetration. Dell uses overnight mailing companies to send orders to customers within 48 hours of the placed order.

Dell has numerous global distribution locations. These locations are strategically positioned to keep shipping prices down and to ensure prompt delivery. Dell uses comparative advertisements to demonstrate their products superiority in quality and pricing. The computer companies that spent the most adverting from May 98 to April 99 are seen below: Computer Companies Advertising Costs (in thousands) Annual Sales for 1999 (in Millions) IBM Corporation 309, 326. 50 87, 548. 00 Compaq 156, 799. 10 38, 525. 00 Dell 115, 619. 70 23, 637. 00 Hewlett-Packard 111, 516. 80 43, 808. 00 It appears, from the figures stated above that the amount spent on advertising coincides with their market share ranking, with exception of IBM. Dells manufacturing centers are located in Texas, Tennessee, Brazil, Ireland, Malaysia, and China. Dell opened a 23, 000 -square-foot plant dedicated to producing servers.

All computers, notebooks, and servers are built-to-order at every location. Production is done n small groups, called cells. This way of production reduces assembly time by more than half. Dell markets a...


Free research essays on topics related to: market leader, technological advancements, computer companies, vice presidents, hewlett packard

Research essay sample on Technological Advancements Hewlett Packard

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