Dell

1. How and why did the personal computer industry come to fuck off such low average profitability? Market harvest-tide and Competition. Throughout the 1980 and 1990s, PC performance improved and prices fell at a rapid clip. A vigorous price fight followed after 1990 as well. Demand ripening recovered in the mid-1990s, buoyed by strong economic growth and the emergence of new, popular services involving computer networks. Creation of electronic postal service and growth of the Internet gave customers new reasons to purchase a PC. PC prices go on to decline. Compaq offered a powerful personal computer for less than $ jet in 1997, and other companies rushed to offer similarly trashy PCs. By December 1998, the prices of the least expensive PCs had plunged to $449. As treat cost declined, the lines between PCs and other devices blurred. Handheld electronic organizers had begun to struggle with the personal computer for applications such as electronic mail and portable computing. Manufacturing. By the early 1990s, contract manufacturers, many in Asia, started to use new efficient PC assembly line, undetermined of assembling 250 000PCs per year, with an investment of roughly a million dollars. The prices of components use to make PCs had typically declined 25-30% per year.

In 1998, prices declined even double-quick, at a rate of roughly 1% per week. The financial crisis in Asia change magnitude competition and gluts in the market for several components all contributed to the faster decline in prices. 2. Why has Dell been so sure-fire despite the low average profitability in the PC industry? Dells success and profitability has been learned on the following factors. Direct amaze, Differentiated Products, Customer Service, JIT, Economies of scale, high-octane Assembly Line. Dell created Dells Direct Model - new marketing and distribution strategy to deal right off with end customers. Sales and Marketing. While most competitors supplied machines based on orders from distributors,... If you want to get a full essay, order it on our website: Orderessay

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