SIC Code 3571 – The Electronic & Computers Industry Overview The electronic & computers industry consists of hardware, software, service and an endless array of products, our team chose to narrow the research to PC’s. Including as well computers and computer storage devices such as: DVD drives, and computer peripheral equipment, such as printers and scanners; communications equipment (wireless telephones and telephone switching equipment) and some others. The future of this industry is evolution. An enormous opportunity is open due to all mobile device markets and services such as consulting and Cloud computing that are growing fast. Social networking is changing how companies and customers interact with each other, we can often see employees bring their own devices to work and complement enterprise software with their own hand-picked.
Also, the competitive factors that should be considered by the companies are new technologies, custom built laptops and PC’s, reliability (brand penetration and alliances) and customer service. A big change happened over the past ten years. Companies have transformed production by reducing their dependence on labor (employment falling 45% in the past decade) and increased their productivity by automatizing their processes (450% increase over the same period). Also manufacturing plants have moved to cheaper labor cost countries. In the future, the industry will keep seeing mergers and alliances between companies to complement their services and product to better satisfy their customers such as the alliance between Dell and Lexmark.
Apple was founded in 1977. Its mission statement is “Apple will be a leader in providing simple, powerful, high-quality information products and services for people who learn, communicate, and create”. Apple is distinguished by stylish product innovation and entrepreneurship. The Company’s products and services include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a portfolio of consumer and professional software applications, the iOS and Mac OS® X operating systems, iCloud®, and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through the iTunes Store®, App StoreSM, iBookstoreSM, and Mac App Store. The business strategy is innovation to bring the users new products and solutions. The company continues to expand its platform for discovery and delivery of third party digital content and applications thought iTunes store.
The company sells many of its products and resells third-party products in most of its major markets directly to consumers and businesses through its retail and online stores. The Company’s retail stores are typically located at high-traffic locations in shopping malls and urban shopping districts. By operating its own stores and locating them in desirable high-traffic locations, the company is better positioned to ensure a high quality customer buying experience and attract new customers. The company also sells its hardware and software products to enterprise and government customers in each of its geographic segments, and also has solutions to help educators teach and students learn. Apple’s 2011 Total Revenue was $108.2 M and a Net Income of $25.9 M. Dell
Dell was founded in 1984. Its mission statement is “To be the most successful computer company in the world at delivering the best customer experience in markets we serve”. Dell designs, develops, manufactures, market, sell, and supports a wide range of products, solutions, and services. As products segments it has: servers and networking, storage, software and peripherals, mobility and desktop PC. The business strategy is supported in the fact that Dell built its reputation as a leading technology provider through listening to customers and developing solutions that meet customer needs. A few years ago, the company initiated a broad transformation to become an end-to-end technology solutions enterprise.
Dell is expanding their business solution portfolio, which includes servers, networking, and storage offerings. In services, Dell is adding more capabilities to provide end-to-end technology solutions to customers, including managed security services focused on threat intelligence and security consulting, and on growing their end-user computing business (desktop and mobility offerings). In 2011 Dell acquired more than ten companies whose offerings and intellectual property enhance its solutions business. Dell’s 2011 Total Revenue was $61.5 M and a Net Income of $2.6 M. Key Competitors
The competition within this industry is extraordinarily cutthroat. Top player companies within this industry are Hewlett-Packard Company, Apple Inc., IBM Corporation, Dell Inc., Sony and Gateway among others. Dell is the world’s number one direct-sale computer vendor providing a broad range of computer and entertainment products for the consumer and enterprise markets. Sony has refocused its approach to selling computers: instead of appealing primarily to consumers, it is now targeting business customers (mostly small and medium-sized companies).
HP’s Personal Systems Group (PSG) markets desktop and notebook PCs to consumer, businesses, government agencies, and schools. Apple is the world’s top computer manufacturer, holding a niche status in a market dominated by “Wintel” machines (computers using Microsoft Windows software and Intel processors). Gateway is perhaps the purest PC player among the leading computer manufactures, which has been hit hard by slowing sales in that industry.