Computer Industry B2B (A)

121105: Ameya Pai Angle 121108: Ankita Choudhary 121110: Anubhav Awasthi 121114: Aseem Chandwani 121115: Ashish Agarwal

Overview- World
Dell moved ahead of Samsung in the worldwide PC monitor market for the first time since 2007, shipping more than 5.0 million units in the second quarter of 2013 (2Q13). Total PC monitor shipments for the quarter were 33.5 million units, which was 1.6 million units more than forecast but still represented a year-over-year decline of 0.7%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Monitor Tracker. On a geographic basis, China remained the largest market for PC monitors with 29.2% share, followed by the U.S. with 18.4% share. The number three market, Brazil, trailed by some distance with 4.3% share.

Market Share-World
Vendors
1. Dell 2Q13 Unit Shipments 50,13,084 2Q13 Market Share 14.90% 2Q12 Unit Shipments 49,67,133 2Q12 Market Share 13.80% 2Q13/2Q12 Growth 0.90%

2. Samsung
3. HP

42,24,021
39,99,748

12.60%
11.90%

55,67,236
40,07,786

15.50%
11.10%

-24.10%
-0.20%

4. LG
5. Lenovo Totals

33,39,547
30,39,458 3,35,81,748

9.90%
9.10% 100%

28,63,792
33,39,311 3,59,94,550

8.00%
9.30% 100%

16.60%
-9.00% -6.70%

Overview- India
The overall India PC shipments for Q3 2013 stood at 3.24 million units i.e. a year-on-year growth of 8.4% over Q3 2012 and a quarter-on-quarter slide of about -8.3% over Q2 2013. Uptake on commercial volumes owing to fulfillments around large education projects, has led to the contribution of this segment to rise to around 59% against their share of nearly 50% seen a year ago. In terms of vendor share, HP sustains its lead with 32.3% share, yet again accounting nearly one-third size of the India PC market in Q3 2013. Vendor continued to receive a boost in shipments as part of a large education project in UP. Also, their ability to maintain better pricing against competition tied with aggressive marketing campaigns on both desktops and portable PCs, helped them scale up their dominance in the India PC market, added Kiran Kumar of IDC.

Overview- India
IDC expects Q4 to crumble because we anticipate seasonality and price hike to disrupt PC buying in the quarter ending December. Additionally, elections in Delhi, civil issues in the state of Andhra Pradesh are further expected to impact the overall buying in some of these larger states. Excitement around product transitions to Haswell family of processors and the launch of Windows 8.1 may not drive demand in the near future.

Dell Inc.
Dell Inc. : Founded in 1984 Mission Statement: To be the most successful computer company in the world at delivering the best customer experience in markets we serve. Next day delivery No middlemen or intermediate retailers Current Situation: Revenue over $56 billion Net income of $3.4 billion

Hewlett-Packard
Hewlett-Packard: Founded in 1939 HPs mission: To invent technologies and services that drive business value, create social benefit and improve the lives of customerswith a focus on affecting the greatest number of people possible. First product was an audio oscillator Multi component system model Current Situation: $86 billion in revenue net income of almost $2.4 billion

Apple Computer
Apple: Founded in 1976 Mission statement of Apple is as follows: Apple will be a leader in providing simple, powerful, high-quality information products and services for people who learn, communicate, and create. Stylish product innovation Entrepreneurial Current Situation: $14 billion in revenue Net income of almost $1.3 billion

Gateway Inc.
Gateway: Founded in 1985 Mission statement of Gateway Inc. is, To invest in our communities and future by providing state-of-the-art technology and technical support. 3rd largest personal computer company in the United States Ranked in the top ten worldwide Profit pyramid model Current Situation: $4 billion in revenue Net income of almost $6 million

Soyo Group Inc.

Soyo Group Inc.: Founded in 1999 The mission statement of Soyo is, To capitalize on Soyos market position as a leading distributor of computer and networking products by increasing penetration of existing markets through acquisitions and expanding into new markets. Computer peripheral devices Current Situation: $38 million in revenue Net income of almost $540 thousand

 HP, Compaq and Dell and IBM are the major players in the computer B2B market. HP and Compaq combined to use the economies of scale which resulted in a $2.5 bn cost savings. Similarly, IBM and Gateway had combined to form an alliance. Major problem: Dell Dell created a competitive advantage by becoming the most efficient PC maker

 Dells build-to-order, which keeps inventories low. Low inventories mean that, when Intel drops the price of its processors, Dell doesnt have a lot of the old expensive processors sitting around. Dell can reduce the prices on its computers faster than its competitors because the components that make up those computers are the latest and cheapest. So far, no other PC maker has been able to match Dells cost structure.

 Dells announcement and strategy is similar to the low priced guarantee announcement popular among electronics retailers. From a game theory perspective, the problem is a little like the Prisoners Dilemma, except that in the classic prisoners dilemma, each party has the same to lose but, in this game.

 Surprisingly, like the simplistic pricing model, many pricing models ignore feedback. These incomplete models assume that price affects sales once-and-forever and the market immediately reaches equilibrium. We need to also include feedback as shown in the next diagram:

 The diagram above shows eight feedback loops. This is only a simple two competitor model. Increasing the number of competitors exponentially increases the dynamic complexity because each competitor has its own strategy and can respond to a strategic change of any other competitor.

Distribution Strategy
Distribution channels are used to sell products to customers. Distribution strategies help identify sales channels that can maximize sales and profits. Distribution is one of the "4-Ps" of marketing -- the first three are product, promotion and price. The fourth, placement, means distribution. A distribution channel must be developed with care so that it does not become a "repository of lost opportunities,"

Developing a distribution strategy

Manufacturer

Direct Channels

Indirect Channels

Direct Sales

Online Marketing (Social media)

Telemarketing

Manufacturers Rep

Industrial Distributors

 Direct channels include online, retail and telephone sales. Indirect channels include retailers, such as Chroma or Vijay Sales, that sell products without major modifications; value-added resellers, or VARs, that add features and services before selling; distributors and wholesalers that typically resell to other channel partners; and telemarketers, sometimes outsourced, who prospect for customers and close deals. Now evaluation of customers' requirements. These include what they buy, how often and whether they require additional products and services along with our merchandise.

Strategy
Industry specific websites where the merchant may be selling their products EDI integrations with major retailers (like Chroma) Flat-file integrations with a large wholesale customer Etail provides a very flexible platform which is capable of communicating with our B2B/Alternate sales, available options are: EDI Automated Website Interactions If there is a need to automate a B2B/Alternate sales channel, contact any Etail representative.

Responsive Supply Chain: Competitive Strategy

SCM facilitates organizational coordination required in an agile/virtual enterprise. These include: (i) the development of an interconnected information network involving a selected group of trained suppliers, (ii) a successful balance between a low level of stocks with high-quality delivery service, (iii) the designing of innovative products with the active collaboration of suppliers, and (iv) cost-effective delivery of the right products to the right customer at the right time

 Considering the overall characteristics of the strategies and technologies of SCM, the enablers of RSC can be identified as (i) strategic planning, (ii) virtual enterprise, and (iii) knowledge and IT management.
An RSC system requires a level of compatibility and interactivity that will allow the company to cope with the changes and increasingly complex settings of organizations and markets, particularly in a networked economy.

References
http://forio.com/resources/article/the-pricestrategy-simulator/ http://www.idc.com/getdoc.jsp?containerId=p rUS24466513 http://www.idc.com/getdoc.jsp?containerId=p rUS24322313