Overview of the Industry:

The Industry analysis diversified computer system industry comprises of a few big market players namely; IBM, HPQ, Cray, Pinnacle Data Systems, Silicon Graphics, and Teradata Corporation. However, the industry indirectly competes with specialized companies (Dell, Acer, Apple, ASUSTeK, Accenture Sony Corporation, Infosys,  Wipro, SAP, Oracle, Microsoft etc.) in the product and service ranges of personal computers and laptops, printing & imaging, data services, enterprise resource planning etc (Yahoo Finance). Furthermore, the overall industry still mostly relies on global PC industry which is expected to grow a compound growth rate of 3.8 % during 2011, while laptops would be the major contributor to its growth (Gartner). The industry dynamic is also rapidly changing due to consolidation which is leading to the emergence of some bigger competitors in the industry. Moreover, the changes in global demand and new technologies are rapidly changing the outlook of the overall industry where competition based on price war is becoming aggressive.

Porter’ Five Forces Model and Diversified Computer System Industry:

Competitive Rivalry:

The diversified computer industry presents intense and fierce competition, as it is comprised of some long-established corporations and a large number of new and rapidly growing firms (Porter). The industry landscape is also increasingly taking new shape due to industry consolidation creating larger, more homogeneous and aggressive competitors in the market. Moreover, some existing players are also entering into exclusive arrangements with other existing or potential customer or suppliers.  Moreover, the firms are under huge pressures to bring innovation in their products and services due to short product life cycles and to remain competitive on the basis of technology, performance, price, quality, reliability,


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