Dell Strategic Group Analysis

.1.2. Strategic Group Analysis

Price

Product/service range

Competitor Name

4

Dell Inc.

5

3

ACER

4

7

APPLE

2

6

Sony

6

4

LENOVO

4

2

HCL

2

5

HP

6

The life cycle of an industry will strongly affect the level of competition within an industry. This is the case because a high growth rate allows most competitors to grow without having to take margin from other organisations. In opposition, low growth rates will increase competitive rivalry as organisations have to grow at the expenses of their competitors.

1.1.3. Industry Life Cycle

Total Industry Sales

Year

2008

1546

2009

1433

2010

2394

2005

534

2006

701

2007

962

Analyze Life Cycle

The Indian IT hardware industry has witnessed an incredible growth in 2010 by 42% after the market shrank of 7.3% last year. The compound annual growth rate of the market in the period 2005–09 was 28%. Net books (27%), notebooks (90%) saw huge growth with respect to last year. International MNC's accounted for 52%, while domestic brands only accounted for 13%. The slowdown the industry faced due to the global economic recession has been over and has witnessed an incredible comeback with record sales. Dell was the market leader in PC sales overtaking HP for the first time which ruled the market for years. Dell also is the number one in large enterprise sales when it overtook IBM in 2008. Stiff competition lies in the market for years to come as India market is the world’s fastest growing market in the industry with all global players shifting their focus to India. Dell is the only international company to have its own manufacturing facility in the market and it has finally paid off by being the leader overthrowing HP. Other components of the industry involve servers, storage and other accessories like printer, UPS etc.