PC Pro is the UK's number one IT monthly, keeping readers up to speed on the latest technology developments since 1994. We specialise in insight: what's the best technology to buy for home and b...
sbz55
pc pro april 2015
selected cases on motion to quash
Spec Pro DigestFull description
Full description
contoh kasus AVRT (Teknisi Kardio Vaskuler )
despre pc
spec pro
Case 4-1 PC Depot
case depot
Air India (AI) had financial losses for the last 9 years till the recent announcement of becoming profitable this year. In the past, the airline was unable to make profits that seemed to be …Full description
D.K.BASUFull description
Case Study Toyotoa
Full description
The Case of the Waylaid Wolf by Erle Stanley Gardner. A Perry Mason mystery. Perry Mason Della Street Paul Drake Lieutenant Tragg Sergeant HolocombFull description
Case Study
ikj;j
Case Study
Case of the Profitless PC
GROUP 1 Himanshu Jain Rachit Jain Sunny Kohli Shiba Bhutani Aparna Vora Aditya Dutta Shubham Agnihotri Kunal Parmar Shashank Pandey
Key characteristics of the PC industry •
•
Price competitive •
Standardized components and doesn’t require too much expertise
•
Entry barrier are low
Low Margin selling •
•
•
Market is price competitive, the vendors often sell their offerings at very low margins Small companies survive on post-warranty support and consulting, no profit on straight PC sales
Rapid Price Fluctuations •
The prices changes dramatically and frequently
•
Prices generally decrease so already low margins get squeezed
Key characteristics of the PC industry •
Vendors Keep Low Inventories •
•
•
•
Aggressive price competition, vendors’ focus on entering /creating new PC peripheral product markets The demand for new peripheral tools and technologies has introduced new opportunities for vendors
Establishing strong relationships with suppliers •
•
•
Whenever prices drop the vendor potentially loses money on every component in inventory at the time
Entry to PC peripheral product markets •
•
Keeping high inventory can be detrimental
Signing exclusive long-term agreements with suppliers of PC components or peripherals A drop in bottom-line cost for the most expensive of PC components from purchasing in bulk quantities
Alliances and joint ventures •
Sign deals with software vendors in order to bundle their products with PC systems
•
increases the perceived value of the PC vendor’s product
What should Praxim do ? •
Task of improving bottom line without loosing on sales
•
Upmarket had now being stagnated and the scope for growth is little
•
Segmentation based on consumer’s needs can result in market penetration
•
Bundled boxes with ( software and other services) will satisfy more customers
•
•
•
Investing in specialty stores, where a premium can be charged thus increase in margin Season offers can be introduced, by charging premium differently Introducing PC customization for consumers, It will reduce inventory cost as well as procurement cost as it will be JIT inventory
Strategic model - Porter’s five forces model for PC industry Bargaining power of buyers
Threat of new Entrants
Rivalry among competitors
Bargaining power of suppliers
Threat of substitute products or services
Force
Key Determinants
Strength of the force
Rivalry between competitors
Concentration (number) and size of competitors
Medium to high
Brand identity
Barrier to entry
Economies of scale
Medium to high
Brand identity Capital requirements Threat of substitutes
Price/Performance of substitutes
Low to medium
Switching costs Buyer Power
Buyer concentration
Medium to high
Buyer size (volume) Switching costs Supplier Power
Supplier concentration Supplier size (volume)
Low to medium
Analysis •
•
•
•
•
•
•
Major competitive threat to any vendor in this industry is the degree of price competition Average revenue drop has forced market vendors to aim for market share dominance, in an effort to increase their clout in negotiations with component vendors Threat of new entrants by global companies, that can undercut the cost structure of current market, is also an important issue Emergence of niche competitors has also caused companies in this industry to take note, as public demand for increasingly customized computers increases. Further, the steep discounts that corporate and governmental customers demand can cost PC vendors in their profitability Pressure to offer the most cost effective product in these volume orders places serious pressure on company profitability Vendor reliance on component suppliers can put an unbalanced level of power in the suppliers’ favor.
With which of the experts do you agree regarding his or her analysis of Praxim’s situation? •
no participation strategy in consumer segment will lead to further loss of potential customers and thus reducing the revenue Victor’s
•
•
Hence we disagree with this strategy.
Bob’s
strategy as pointed by Mike will not make any significant change to their existing situation. •
Hence should not be adopted
Linda’s •
•
•
•
and Mike’s :
Focus on brand value and building customer relationship Increase customer awareness and knowledge to develop a long term relationship. Reduce cost by using the same customer service as done by the commercial segment and also using some direct sales force from commercial segment in tandem with this segment. Also concentration should be on technological innovation for gaining competitive advantage in highly competitive market.
Relevance of Case now Case remains relevant as PC makers face declining growth. Issues faced today •
•
•
Price influences buying decisions of PCs since technology is no longer differentiated One PC that does it all is no longer an attractive preposition, rather different segments want bundled machines that can do specific tasks Tablets, Google Glass and other computing devices give PCs a challen ge
Shrinking Market for PC makers* , Lenovo’s 0.6%, HP
