Electronic Assignment Coversheet: Student Number

Sathiamoorthy Ragavendran STRATEGIC DECISION MAKING
31767392 MBS 606
ELECTRONIC
ASSIGNMENT
COVERSHEET
Student Number 31767392
Surname Sathiamoorthy
Given name Ragavendran
Email ragavensathyamoorthy@gmail.com
Unit Code MBS 606

Unit name Strategic decision making
Enrolment mode Internal / external
Date 11-10-20012
Assignment number 1
Assignment name Individual Industry analysis
Tutor Mr.Krishna
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pg. 1
Industry analysis (Dell.Inc)
31767392 MBS 606
Assessment Task 1 Marking Guide

Individual Case Study Report
Layout: Professional layout 4 marks
Introduction shows approach [introduces topic, briefly explains approach,

briefly comments on topic]
Body matches introduction [Body aligns with the introduction]
Conclusion is clear articulated
Clear & easily understood [Text has a logical flow, no grammatical

errors, sentences correctly constructed]
Report complies with the word/page count
Argument & conclusion 18 marks
Issues are identified and discussed
Goals are identified and discussed
Case integrated with theory
Evidence of sourcing a range of suitable references to substantiate

argument
Analysis was critical
Conclusion is clearly defined and flows from the argument
Recommendations link with the analysis in an insight manner
Referencing protocols: Assessment uses standard referencing 3 marks

protocols
Sources have in-text citations [Sources are identified]
In-text citation format [author, date & full page ref if quoting]
Reference list format [full referencing protocols]
pg. 2
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Grade Percentage Mark
HD 80-100% 20/25 or
above
High
Distinction
D 70- 79% 18- 19/25
Distinction
Credit 60-69 % 15 -17/25
Pass 50-59 % 13 – 14/25
Fail Below 50% 11/25 or

below
DNS Fail Fail, the student failed to

participate in assessment
components that has a
combined weighting of
50% or more of the final
mark
pg. 3
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Abstract
Basically the research report contemplates a detail analysis on PC industry. The report identifies
various factors on external and internal environment and delivers recommendation
Issues identified in external analysis
 Industries dominant economic traits
 Competitive forces
 Complementors
 Rivals Position
 The driving forces
 Strategic moves of rivals
Issues identified in internal analysis (Dell.Inc)
 SWOT
 Uniqueness in Dell’s DNA (relativity with the core competency)
 Outlooks of Value chain supporting low cost provider strategy
 Primary and Supporting activities of value chain
 Dell's decline
Finally the report encloses its Recommendations with supportive articles.
pg. 4
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Introduction
PC manufacturing is a technology oriented industry empowering innovation. The abstract of the

report reveals the external climate of PC industry through Porter 5 forces. The analysis is made
in-depth to identify the criticality of the industry. Secondly the report identifies the internal
analyses of Dell on exploring the Dell’s DNA, SWOT and its core competency revealed with in
its value chain. The in-depth analysis identifies certain critical factors on answering 1.what made
dell to do well during 2004-2005? 2. The primary reason for Dell to swim down the graph and
losing its power over HP. Ultimately recommendation defines what/what not the companies in
the industry do to sustain their respective growth.(issue on industrial growth: appendix)
External analysis
Industries dominant economic traits
With this rapid growth (as mentioned above), the number of rivalry is quiet high which
influenced the competition within the industry to be extraordinarily an open challenge by
practicing creative distraction. The common big players are IBM, Dell, Apple, HP, Sony, and
Compaq.
The consumer’s expectation (needs & requirements) changed, comparatively with respect to
1990's. The shifted consumers concentrate on instantaneous access, less complexity, hi-speed
processors, multi-tasking, ease of access, high flexibility and product innovation. The
organizations’ should highly be sensitive in recognizing the pace of technological change and
should match up with the requirement shift. Apple is a good example for matching the
requirement profile and implementing their ideas through innovation.
(Steve Jobs, . “The MacBook has a precision unibody enclosure crafted from a single block of
Apple’s CEO) aluminum, resulting in thinner, more durable and incredibly beautiful design.
defining on of the Apple has invented a whole new way of building notebooks from a single block
products of apple of aluminum. And, just as important, they are the industry’s greenest
which fits the notebooks,”
market needs.
pg. 5
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Vertical integration and the economies of scale are the best way to reduce cost and to improve
efficiency. Expanding the business in different point on the same production path will result in
improving the value chain and allows the management to cut cost to achieve economies of scale.
Acquisitions are typically beneficial as they create synergy, which occurs if the value of a
combined firm after the integration of two, is greater than the sum of the value of the acquiring
firm and the value of the acquired firms before the merger (Ross et al 2008).HP’s Acquisition on
EDS (2008)
The experience of learning curve will define clarity and improvement with respect to the
organization's strategy. The success of DELL was literally from the learning curve, whereas most
of the other PC manufactures tried and failed to gain the estimated output by replicating the
strategy.
Michael Dell on learning curve

• "The competitors started coping us seven years ago. The learning curve for them is
difficult. This is eighteen and a half years process and it comes from many many cycles
of learning"
Competitive forces
Threat of new entrants: Moderate
Low capital of investment for investment store, in fact Michael Dell had a low profiled
investment with few cloned IBM machines to be sold out in making profit. High risk in
managing value chain and to achieve economies of scale; may result decrease in profitability.
Rivalry: aggressively strong
Most of the organization is highly innovating to the extent, seeking product differentiation
amount the other products in the market. Product differentiation is the proportional impact from
creative destruction. Schumpeter's central message is that the process of creative destruction
describes the form of competition in capitalism that is capable of dramatic improvements in the
quantity and quality of our lives (Diamond, 2004).which seems to be the primary indicators for
pg. 6
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the organization to match up with the current market (seeking innovation on instantaneous access)
requirement.
High competition: price, quality, inventing new technology.
Buyer’s power: strong
Basically personal computer buyers are price sensitive. The large governments, schools and
organization buys PC's in large volume, seeking advantage in power of bargaining. The power of
buyers shrinks when brand loyalties switching cost are high, thereby the manufacturers can
reduce a threat of buyer power by differentiating their product.
Suppliers: Strong
IT industry is highly influenced by the suppliers, since the major role in manufacturing is from
their supply of goods. There by most of the organization incorporate vertical integration,
resulting cut cost in value chain to achieve economies of scale.
HP's acquisition with EDS

•In this case HP's acquisition with EDS; deliberately to integrate the mass software
productivity with their hardware. But Dell had different strategy by partnering the most
reputed suppliers to gain five most advantages (as discussed in the case) out of them.
Threat of substitutes: moderate
Gadgets are the new substitutes for the computer industry. Any device whose compatibility is
flexible with windows or iOS is a substitute.. Though the compatibility and flexibility improved
in the form of smaller machines, there is still user of computers and laptop, gaining their most
efficient out of it.
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Complementors: moderate
The complementors so called the (sixth force), exerted from the software industry in the form of
technical requirements.
PC
Industry Adobe:as complementors
high end software packages
of Adobe requirements are
technically advanced
equipment’s than the
default requirements. In a
way, they hold a
complementing force over
the hardware industry to
manufacture such
specialized equipment’s.
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pg. 9
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Rivals Position
The rivals mapping (fixed in appendix) explores the detail position of the competitors.
The driving forces
Market requirement holds a high influence over the PC industry. The expectations heightened
seeking more flexibility, compatibility and user friendly. The overall comprehensive needs (from
2008) were more storage memory, faster in accessing and ease to use.
• The future prospects of the computer industry are explosion of data

(forester research 2008), rapidly growing on doubling of data.
Driving force • flexibility, compatibility and user friendly
Technology
The worldwide innovation has increased at an ever-quickening pace. Innovation is the only tool
to capture high market by delivering a unique product. The R&D of an organization should be
healthily fueled with experts to achieve the market requirements.
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Strategic moves of rivals

-HP had a plan to integrate with a computer network infrastructure and lately it was known to be 3com.
-HP's completed its acquisition of EDS in 2008, the HP's executives decided to cut cost by scrutinizing the excess resources
-HP's IT transformation was not just a technology initiative within the organization; it is a business strategy throughout the
organization.
The HP's objectives in IT Transformation

-Reduce IT spend and complexity -Lower energy consumption
-Provide better access to information -Speed delivery of new business services
-Allow quick integration of acquisitions -Improve business continuity
-Accommodate and drive business growth
The transformation focused on five major initiatives

-Next-generation global data centers
-Portfolio management
-Workforce effectiveness
-Building a world-class technology organization and a true enterprise data warehouse.
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The key success factors of HP

•Adequate governance
•Information quality
•Development approach
The key success factors for dell

•Sell direct
•Build to order business model strategy
The Internal analysis
The detailed SWOT report (attached in appendix), which identifies a clear idea of what Dell’s
pluses and minuses. The following analysis are down, with the support of SWOT report.
The key aspects on dell's success
 Bypassing distributers and

 Build to order strategy.
Dell’s build to order and sell direct strategy benefitted the company on improving manufacturing,
distribution capabilities and procurement scale in the global Computer industry. The strategy
helped dell to take over HP (the global market leader) during 2004-2005, unfortunately slipped
down again during the year 2006.
Uniqueness in Dell’s DNA
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Core competency derives from the collective learning of individual members within the
organization and their ability to work across organization boundaries (Prahalad and Hamel 1990).
Dell’s DNA, sustainable core competency focuses on four unique qualities: demand management,
internal collaboration, leveraging partners, and financial fundamentals. (Fugate, Brain S,
Menter, John T 2004)
 Demand management
The direct model enables the organization to excel at demand management. The processes of
selling directly to customers enable the opportunity of gaining real time collaboration and
synchronization with the customers.
 Internal collaboration
A competency is focusing on "Direct communication”. Kay (1993) architecture does not create
extraordinary organizations by collecting extraordinary people. It does so by enabling very
ordinary people to perform in extraordinary ways. Dell designed its DNA with such exclusive
potent, which implies that dell has created an open climate for achieving internal collaboration. It
is not unrealistic for Michael Dell to email an employee, to discuss issues. In most of the
organization, such culture is not encouraged; in a way, the filtering layers will distort direct
communication.
"The ability to
senior
production-
directly disseminate
control
manager
and react to
Desormeaux. information is our
core competency,"
 Leverage Business partner
Dell's culture not only helps the company to network internally but also helps to leverage its
business partners. Dell touches its partners by integrating supplier's planning and execution
activities with Dell's systems. The company uses its IT to fetch and share information on supply
pg. 13
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and demand trends. The suppliers are also expected to share data such as new technology drivers
and capacity outlooks. In return, Dell provides direct signals of customer demand to suppliers
(partnered in long term) and shares market shifts and resourcing strategies.
 Inline business fundamental
The fundamental business performance relies on value chain (appendix). The uniqueness of dell's
value chain is short and precise in nature. The value chain is highly integrated with business
fundamentals and culture. Since Dell's culture designed to be quick and swift, the response of the
each entity is expected to be quick and instantaneous. In a way, the flows of functionalities are
expected to flow and sync with the company environment.
Basically, many rivals analyzed and tried to implement Dell's strategy; resultant, higher chances
of losing than success. (Kay 2000) summarizes distinctive capabilities as characteristics of a
company that either cannot be copied by competitors or can be achieved with great difficulties.
Since the distinctive core competency enabled a unique DNA, so called competitive advantage
which other rivals found hard to match with their business practice.
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Outlooks of Value chain supporting low cost provider strategy
Primary activities
1.Inbound logistics
Seekingexternal resources
-Close and partnering with supplier
-Just in time order
3.Outbound logistics
-Close to customer
2.Operation -Online sale
-Customized options are to be -Sales and services (cheaper than rivals)
implemented
-Sharper way of Manufacture products
(new plant with highly equipped) 4.Marketing and sales
-Market product sales and service
-Build brand on its own strategy
4.Marketing and sales
-Market product sales and service 5.Service
-Build brand on its own strategy -All activities on service, since
dell's clients are usually large
companies or government
institutions
-Clarifying queries
The primary activities of dell
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Supporting activities
Infrastructure
Administration
Flawless network
Technology control
infrastructure
Activities concerned
with IT development.
HRM Upgrading platforms
Recruiting, developing, Hunt for ease to
motivating and access technology
rewarding
Payroll
Procurement
Negotiation with
suppliers
Lowering the
bargaining power of
Intel and Microsoft
Dell has its core competency in the broad realm of value chain management. In a way, dell's
sustainable competitive advantages are the functions of dell's DNA supported by the value chain
and entitling dell to produce a unique capabilities to sustain the market position as low cost
provider.
Dell's knowledge of competency in forward and backward integration converted and created
customer value in the form of generating low cost machine and service. (Prahalad and Hamel
1990) critical task of management is to create an organization capable of creating products which
customer need but have not yet even imagined. Unimaginably Dell created its products with
pg. 16
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value added services at very low cost; which made the rivals IBM, HP and sun microsystem to
struggle due to their premium pricing on service.
Dell's decline
 Strategic failure
As per the graph (attached in appendix),
Market share operating net profit

expense margin
2006
2006 2006
The graph interprets the above three keys by clearly stating Dell as lost its control.
The Vision deliberately delivers "to become one of the top three companies". YES dell had a
sprinting phase on sales during 2004-2005.but what made dell to decline from its phase?
Basically dell relied on single formula strategy- "We make PC's cheap" and nothing more about
that. Dell’s first step in PC selling was with the same formula on cloning IBM machines. Dell
assumed that this single formula strategy will never mature even when the market shift. In fact
Dell assumed that “we know market well, we have the strategy to penetrate in to it easily”. Since
they had a hick, they decided to expand in their product line. Their strategy on value chain
supported them to grow faster, but up to a certain extent. lately their graph decline simply
because they had nothing to grow anymore, i.e. they had no ability to produce a new growth.
Fixation is a common mistake influenced over most of the upper layer management, it is a point
of being still and question "why to change something that works excellent?.
Don Richie, CEO “Their whole emphasis is on getting the box out cheaper and
of Sequel Data
Systems (HP faster than anyone else. They pay no attention to the service side
exclusive partner) of the business"
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The single Formula strategy of dell attain its growth up to certain optimal level get terminated.
Lately is hard to find a strategy for growth. “The business should have reinvention strategy in
order to develop Competitive advantage (Prahalad and Hamel 1989)”. When its all you can do to
keep up with the growth your current business model is providing; you sustain and don't feel the
urgency to build a new platform" (Clayton Christensen 2007). It’s better to Nurture the next
growth platform before it's needed.
The right strategic decision should implied not on expanding the product line, it should be
focused on improving their competitive advantage on re-structuring a new growth.
The creative part of developing strategy is finding the sweet spot that aligns the
firm’s capabilities with customer needs in a way that competitors cannot match
given the changing external context – factors such as technology, industry
demographics, and regulation. (David J.Collis and Michael G.Rukstad)
They should have been concentrating on the customer needs, and not the cost. Dell was basically
a computer maker, not a manufacturer. Expanding the product line, toppled the situation from
bad to worse. Lost control on suppliers, since they had a huge in number from different countries.
 Service outsourcing
Dell's clients are huge players such as government department, universities and multinational
organizations. The only motive of Outsourcing is cost reduction, dell out sourced its service in a
foreign land to reduce cost. Since the clients were huge players, dell was not able to control on
servicing. This made them to lose clients for a year and dealt tough time on following up to
regain client.
Recommendations
 Narrow focus on single formula strategy, will tempt management to ignore other
resources. Core competency should be given importance, but the focus should not turn
towards a narrow perspective by avoiding and ignoring the other resources.
 It is very important to identify the rival’s strategy and their future moves, in order to take
proactive measures. Assessing the current tactical advantages of known competitors will
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not help to understand the resolution, stamina and inventiveness of potential

competitiveness. (Prahalad and Hamel 1989).
 Out sourcing has the only benefit of cost reduction. Thereby the management should
analyze in-depth to identify the risk using relational mapping strategy, since most of the
outsourcing strategy breakdown either by service level or contractual implications.
(failure rate of out sourcing: appendix ).
Chicago-based Chicago-based law firm Gordon & Glickson PC released results of study in
law firm out sourcing, which 80 percent of the 85 Fortune 1,000 companies
Gordon & surveyed said they outsource some IT functions and 54 percent reported
Glickson PC serious complaints concerning their outsourcing relationships
 The decisions should be taken under the Strategic fit mapping. I.e. any decision that is
made by the organization must be from the impact of internal and external environment.
It reflects the open systems approach, which sees organisations as a set of interdependent parts that
form a whole, which in turn is interdependent with larger environments (Zeithaml et al. , 1988). The
theoretical framework postulates that fit, match or congruence between a firm's strategy and
environmental or organisational contingencies leads to enhanced business performance (Andrews, 1971;
Zajac et al. , 2000).
 PC industry has its own place on innovation; the organization should hold a resourceful
R&D to intervene the market.
Innovation of products and services has become an increasingly important

strategy to achieve competitive advantage.(Joseph R. Carter , Phillip L.
Carter , Robert M. Monczka and Thomas V. Scannel 2011).
Creative destruction should be practiced, else there are rivals whose is having a chance of
penetrating your market. Diamand and Arthor (2006) evidentially concluded that” truth and
importance of creative destruction is being increasingly accumulated and recognized”.
 Never get fixated with any strategy, (Prahalad and Hamel 1989) being orthodox have
very few chances on revitalization. Practice of Re engineering will impact on innovation
and re invention of competency.
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Conclusion
Globalization plays an important role on PC industry. The growth of PC industry is so high, as

primarily mentioned in the report, it’s up to players who play and the way they play. Players who
take step corresponding to the market shift with innovation will have high chances to survive.
The report ultimately explores certain recommendation; supported with relevant articles to
strength its primary points. The growth of the industry (2008), the globe is shifting towards cloud
computing and the organizations should shift their focus to invent innovation over cloud
computing.
Gartner Research expects cloud computing to be a $150 billion business

Gartner by 2014, and according to AMI partners, small and medium businesses
Research are expected to spend over $100 billion on cloud computing by 2014.
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Reference
Arthur, M. and Diamond,Jr. 2006. "Schumpeter's Creative Destruction: A Review of the

Evidence*." Journal of Private Enterprise 22 (1): 120-146.
http://search.proquest.com/docview/215108274?accountid=12629;
David,.J.C and Michael.G.R. 2008. “can you say what your strategy is?.” Harvard business
review: pg 82-89.
“Dell K-10 report” (2002, 2005-2008).
Hamel,G., and C.K Prahalad. 1989. “Strategic intend: to revitalize corporate performance.”
Harvard business review: pg 63-73.
Hamel,G., and C.K Prahalad. 1990. “The core competence of the corporation.” Harvard business
review: pg 79-91.
“Hp Annual report” 2008
Jordon and Glickson P.C 1998"Sometimes Outsourcing Causes Pain." Service News 18 (12): 33-
33. http://search.proquest.com/docview/221041909?accountid=12629;
Joseph R. C, Phillip L.C , Robert M. M, and Thomas V.S. 2011 “Innovation sourcing--the
suppliers' perspective” Supply Chain Management Review. 15.6 p18.
Jay B. B., David.J,and Mike.W. 2011 “The future of resource based theory: Revitalization or
decline” Journals of management, pg1299-1306
Santala, Matti and Petri Parvinen. 2007. "From Strategic Fit to Customer Fit." Management
Decision 45 (3): 582-582. doi:http://dx.doi.org/10.1108/00251740710745133.
Sean,M., Zhi Li, Subhajyothi,B., and Anand,G.2008“Cloud computing-the business perspective”.

University of florida.
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Appendix
The growth of worldwide information technology scales from 1.2 trillion (2007) to 1.5 trillion (2010), which is a compounded growth
rate of 7.7 percent. The expected projection for the year,
Hardware (in Billions) Software (in Billions) Service (in Billions)
560 327 613
Basically, the Computer have exploded throughout United states and the world over the past 30 years – from 2,000 units shipped in
1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million per year by 2003. Thereby it is very clear on the growth strategy;
organization should be open and act proactive to enhance their business in their industry.
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What market position do rivals occupy
1.8
1.6
1.4 HP
1.2 Dell
1 acer Lenova
low to high
0.8 toshiba
0.6
0.4
0.2
0
0 0.5 1 1.5 2 2.5 3 3.5
pg. 23
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pg. 24
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20
18
16
14
12
market share(%)
10 operating expense (%)

net profit margin (%)
8 operating profit margin (%)
0
2002 2004 2005 2006 2007 2008
Source: Dell K-10 report (2002, 2005-2008)
pg. 25
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Strength Dell is the World's largest PC maker. Profits for the 3 months to July 2005
were in excess of $1 billion US, representing a growth of around 28%. For
the last couple of years it has held its position as market leader (it took it
from rivals Hewlett-Packard). The Dell brand is one of the best known and
renowned computer brands in the World.
Dell cuts out the retailer and supplies directly to the customers. So a customer
selects a generic PC model, and then adds items and upgrades until the PC is
kitted out to the customer's own specification. Components are made by
suppliers, never by Dell. PC's are assembled using relatively cheap labor.
Strengths are internal resources and capabilities that have the potential to be
core competencies. DELL’s core competencies are their cost strategy. In
consistent to being an integrated cost leader, DELL also produce high quality
PCs by using their Direct Business Model approach and sells them directly to
the customers. With this innovative process, DELL cuts out the intermediary,
excluding the associated cost as the company can understand the customers’
needs better and can provide the most effective computing solutions to meet
those needs.
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Weakness The company has such a huge range of products and components from many
suppliers from so many countries. In 2004 Dell had to recall 4.4 million laptop
adapters because of a fear that they could overheat, causing electric shocks or
fires.
DELL’s weaknesses are single sourcing, new product market and reliance on
corporate clients.
Dell is a computer maker, not a computer manufacturer. It buys from a group of

concentrated hi-tech component manufacturers. Whilst this is a tremendous
advantage in terms of business operations, allowing Dell to focus on marketing
and logistics, the company is reliant on a few large suppliers, and to an extent is
locked in for periods of time (i.e. unable to switch supply dues to the lack of
large suppliers in the World).
Catch holding the same strategy.

single formula strategy
DELL’s weaknesses are single sourcing, new product market and reliance on
corporate clients.
Competition and substitute availability
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Opportunities Dell is pursuing a diversification strategy by introducing many new products

to its range. This initially has meant good such as peripherals including
printers and toners, but now also included LCD televisions and other non-
computing goods. So Dell competes against iPod and other consumer
electronics brands.
Dell is making and selling low-cost, low-price computers to PC retailers in the

United States. The PC's are unbranded and should not be recognized as
being Dell when the consumer makes a purchase. Rebranding and rebadging
for retailers, although a departure for Dell, gives the company new market
segments to attack with the associated marketing costs.
. The innovations reflect Dell's ability to incorporate direct customer

feedback into every product. These enhancements have increased:
· Performance
· Reliability
· Usability
· Environmental friendliness.
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Threats The single biggest problem for Dell is the competitive rivalry that exists in
the PC market globally. As with all profitable brands, retaliation from
competitors and new entrants to the market poses potential threats.
Dell, being global in its marketing and operations, is exposed to fluctuations

in the World currency markets. Although it is a very lean organization.
Changes in exchange rates could leave the company exposed to potential
loses in parts of its supply chain.
DELL’s threats are technological changes that are expected since technology
can only get better.
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Source: Gorgen and Glickson P.C
pg. 30

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Sathiamoorthy Ragavendran STRATEGIC DECISION MAKING

31767392 MBS 606

Given name Ragavendran

Unit Code MBS 606

Enrolment mode Internal / external

Assignment name Individual Industry analysis

Optional Comments to Tutor:

E.g. If this is a group assignment, list group members here

Assessment Task 1 Marking Guide

Layout: Professional layout 4 marks

Introduction shows approach [introduces topic, briefly explains approach,

Body matches introduction [Body aligns with the introduction]

Conclusion is clear articulated

Clear & easily understood [Text has a logical flow, no grammatical

Report complies with the word/page count

Argument & conclusion 18 marks

Issues are identified and discussed

Goals are identified and discussed

Case integrated with theory

Evidence of sourcing a range of suitable references to substantiate

Analysis was critical

Conclusion is clearly defined and flows from the argument

Recommendations link with the analysis in an insight manner

Referencing protocols: Assessment uses standard referencing 3 marks

Sources have in-text citations [Sources are identified]

Reference list format [full referencing protocols]

Grade Percentage Mark

D 70- 79% 18- 19/25

Credit 60-69 % 15 -17/25

Pass 50-59 % 13 – 14/25

Fail Below 50% 11/25 or

DNS Fail Fail, the student failed to

various factors on external and internal environment and delivers recommendation

Issues identified in external analysis

 Industries dominant economic traits

 The driving forces

 Strategic moves of rivals

Issues identified in internal analysis (Dell.Inc)

 Uniqueness in Dell’s DNA (relativity with the core competency)

 Outlooks of Value chain supporting low cost provider strategy

 Primary and Supporting activities of value chain

Finally the report encloses its Recommendations with supportive articles.

PC manufacturing is a technology oriented industry empowering innovation. The abstract of the

Industries dominant economic traits

Michael Dell on learning curve

Threat of new entrants: Moderate

Rivalry: aggressively strong

High competition: price, quality, inventing new technology.

Buyer’s power: strong

HP's acquisition with EDS

Threat of substitutes: moderate

The driving forces

• The future prospects of the computer industry are explosion of data

Strategic moves of rivals

The HP's objectives in IT Transformation

The transformation focused on five major initiatives

The key success factors of HP

The key success factors for dell

The Internal analysis

The key aspects on dell's success

 Bypassing distributers and

Uniqueness in Dell’s DNA

 Leverage Business partner