? 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. ? Dell?s 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.
The Essay on Product, Price, Promotion & Placement
Product, Price, Promotion & Placement Now that we have analyzed our marketing research and we have identified our potential target markets as being in the young adult to middle age adults and from the lower middle class and upward income bracket it is time to develop our plans to reach into these markets and grow IPT. How we target these markets is a series of techniques known as product, ...
? 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. ? Dell?s goal is to get its inventory turn ratio down to three days. ? The company?s 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 Business plan on Michael Dell Company Computer Sales
... be the most successful computer company in the world at delivering the best customer experience in the markets we serve." DELL and MARKETING MIX: .1. ... selling PC systems, with the rest coming from servers, storage, services, software and peripherals. Dell also needs to focus on more product ...
? The CEO and Chairman of the Board is Michael S. Dell. Michael Dell?s 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.?
? Dell?s 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 Dell?s 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 product?s 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.
The Term Paper on Bank Of Ny York Industry Ratio
Executive Summary Founded in 1784, the Bank of New York is the oldest bank in the United States. It was the first bank in New York that opened just months after the departure of British troops from American soil in lower Manhattan. During that time period the monetary system was complex and confusing. The founders decided that The Bank of New York wasn't going to be a common institution that ...
? Dell?s 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 and services a range of computer systems, including desktop, notebooks, and enterprise systems (includes servers and workstations).
Dell also markets software, peripherals and service and support programs. ? Dell offers a wide range of pricing for all low and high-end market segments.
? Due to the decrease in PC prices, Dell has started focusing on other PC segments, especially the enterprise system segment.
? Dell created partnerships with suppliers. This partnership allowed Dell to invoke just-in-time component inventories. ? Dell?s production build-to-order strategy allows them to keep no inventory on hand. Since they carry no inventory, Dell is able to upgrade components as new components were introduced to the market. ? Information sharing allowed Dell?s suppliers to know when inventory levels were low.
? Selling directly to customers eliminated the time and costs associated with distributing through resellers. ? There are 2,586,748,000 shares outstanding, with a market value 117,050 ($ Mil).
The number of shares held by institutions is 1,250,265,000 (48.33%) of the stock. The company has not issued any preferred stock. a) Current Ratio: Dell?s Current Ratio is below industry average. This is due to Dell?s new product ventures. Dell decided to invest in its enterprise system?s R & D extensively. Dell needed new product lines that would help increase profits. b) Quick Ratio: Looking at the figures below, we see that Dell?s quick ratio is below the industry?s average. Dell?s increase in short-term debt is causing them to be below the industry?s average.
The Essay on Five-fore analysis of B2C industry and Amazon’s market valuation
Amazon is an American commerce company that sells electronic products and used for business-to-customer (B2C) transactions. It began its business as an online bookstore, and is developing to selling many other electronic innovations. Five-force Analysis of B2C industry i) Threat of New Entry Nowadays, Internet is becoming more popular and it is a simple step to develop business and company ...
a) Debt Ratio: This shows that Dell has $.54 in debt in 2000 for every $1 in assets. This means that Dell can cover its debt obligation with its assets if it needs to. Dell decreased its ratio from .66 in 1999 to .54 in 2000 further demonstrating that Dell has increased its assets in proportion to its debts.
b) Debt to Equity Ratio: Dell’s debt to equity ratio is lower than the industry, which means that Dell has less equity than other companies in the industry. One good reason for this ratio being so low is the additional debt that Dell is assuming in its enterprise system?s R & D.
c) Assets to Equity: Once again the effects of Dell?s new enterprise systems and globalization are apparent. These new ventures are reducing Dell?s Assets to Equity ratio, but should increase it in the long run. d) Fixed Charge Coverage: Times interest earned measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs. Only the industry?s average was available. As an example, lets say that Dell?s 2000 figure was $5.00?this would mean that Dell had $5.00 in earnings for every $1 in interest expense. This shows that the firm can easily cover its interest expense obligations.
a) Accounts Receivable Turnover: Dell is doing much better than the industry in turning their receivables in 2000. Dell is able to collect its receivables faster due to its direct selling method.
b) Inventory Turnover: Dell?s high turnover is mainly due to their direct selling technique. By only keeping the amount of inventory needed for daily manufacturing, Dell is able to triple the industry?s average on its inventory turnover.
a) Gross Profit Margin: Dell is experiencing a decrease in their GPM. Dell?s current and five-year GPM has been below the industry?s average. Dell?s GPM might appear poorer than the average, but due to their global expansion and their attempts to enter into new PC segments, Dell is pouring profits into its growth, which will payoff in the long-run verses the short.
b) Net Profit Margin: This demonstrates that Dell is being outperformed by the industry. While the industry?s after tax profits have increased over the last five ever year, Dell?s NPM appears to be decreasing. Since, Dell has normally done better than the industry, it would appear that their recent decline in NPM is due again to their new ventures into other segments in the PC industry.
The Term Paper on Total Asset Bmw Audi Debt
-vs-Management Analysis December 12, 2002 George Kantor&Julianne Crum BMW and Audi, two German automobile manufacturers, have a reputation for making some of the best cars in the industry. Not only are both companies superior in their production, but their financial statements also indicate stability and efficiency. Looking at financial ratios, we will compare both companies on a basis of ...
c) Return on Assets: Return on Assets shows how much return management has earned on all assets available to it, from all sources. Dell has earned $18.35 for every $1 it has in assets. Dell?s ROA has been above the industry?s average over the last five year. Dell?s management is demonstrating that they are utilizing the firm?s assets more effectively.
d) Earning Per Share: Dell earned $11.27 in net profit for each share of common stock outstanding in 2000. This is a major decrease from their five-year average. Dell is below the industry?s average because of their new ventures.
e) Price-Earnings ratio: The relationship between the market price of a share of stock and the stock?s current earnings per share is often quoted in terms of a price-earnings ratio or P/E ratio. Dell is above the industry?s average in 2000 and was more than double the average over the last five years, this trend demonstrates that investor?s belief in the company is strong. ? Dell should continue its R & D in servers. Dell?s brand name recognition and worldwide distribution network of computers will help propel its server segment, allowing Dell to achieve greater market penetration. ? Since most companies are investing large amounts of money into network development, Dell should turn its focus to network and web servers. By becoming one of the major players in this fastest growing PC segment, Dell will boost its name even more as the leader of innovation in the PC industry. ? Since Dell sells directly to their customers, they must continue to offer a variety of PC models, high and low end, to keep all consumer market segments happy.
? The correlation between adverting and sells seems to be apparent. Dell must increase its advertisement allowance in order to combat its competitors.
? Introduce innovative marketing campaigns that appeal to lower income families. Make advertisements informational so as to relieve the intimidation felt by less experienced computer people. ? Since Dell has created a reputable name for themselves, they should consider opening ?Dell Centers.? Like Gateway, Dell should open strategically located computer stores. These stores would allow people, that do not buy computers direct, the opportunity to see Dell?s products, and have an expert there to assist them in their purchase. This would definitely help Dell increase their reputation and market share.
The Business plan on Dell Corporate Plan And Situation Analysis Or Market Background
... in sales that Dell depends on. Market Share Trends: Today, by nearly any measure–market share, return on ... sites on the Internet, with an average per-page download time of 1.05 ... 8220;They’re inventing business processes. It’s an asset that Dell has that its competitors don’t,” says ... -Packard earns $45,226,000,000 in total revenues and falls in second behind IBM. Dell is ...
