Scribd Logo
Upload

Welcome to Scribd!

  • 32 views

    Case of The Profitless PC

    Uploaded by

    Nripesh Pokhrel
    - Praxim should focus on building customer relationships, bundling products to provide one-stop solutions, educating customers for retention, and utilizing its commercial division's services to boost post-sales support in the customer division. - Porter's 5 forces analysis shows high buyer power due to options, medium supplier power due to ability to switch, medium threat of substitutes from new technologies, high barriers to entry due to investment/branding needs, and high rivalry with little product differentiation. - Since 1998, the PC industry has evolved to focus on design/ecosystems like Apple, customization like Dell, and tiered product portfolios targeting different consumer segments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Case of The Profitless PC

    Uploaded by

    Nripesh Pokhrel
    32 views1 page
    - Praxim should focus on building customer relationships, bundling products to provide one-stop solutions, educating customers for retention, and utilizing its commercial division's services to boost post-sales support in the customer division. - Porter's 5 forces analysis shows high buyer power due to options, medium supplier power due to ability to switch, medium threat of substitutes from new technologies, high barriers to entry due to investment/branding needs, and high rivalry with little product differentiation. - Since 1998, the PC industry has evolved to focus on design/ecosystems like Apple, customization like Dell, and tiered product portfolios targeting different consumer segments.

    Original Description:

    Case analysis of Profitless PC

    Original Title

    Profitless PC

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    - Praxim should focus on building customer relationships, bundling products to provide one-stop solutions, educating customers for retention, and utilizing its commercial division's services to boost post-sales support in the customer division. - Porter's 5 forces analysis shows high buyer power due to options, medium supplier power due to ability to switch, medium threat of substitutes from new technologies, high barriers to entry due to investment/branding needs, and high rivalry with little product differentiation. - Since 1998, the PC industry has evolved to focus on design/ecosystems like Apple, customization like Dell, and tiered product portfolios targeting different consumer segments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    32 views1 page

    Case of The Profitless PC

    Uploaded by

    Nripesh Pokhrel
    - Praxim should focus on building customer relationships, bundling products to provide one-stop solutions, educating customers for retention, and utilizing its commercial division's services to boost post-sales support in the customer division. - Porter's 5 forces analysis shows high buyer power due to options, medium supplier power due to ability to switch, medium threat of substitutes from new technologies, high barriers to entry due to investment/branding needs, and high rivalry with little product differentiation. - Since 1998, the PC industry has evolved to focus on design/ecosystems like Apple, customization like Dell, and tiered product portfolios targeting different consumer segments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 1

    Case of the Profitless PC

    Q1. What as per your analysis should Praxim do? Why?


    According to my analysis, Praxim should heed to a combination of Lindas and Mikes suggestions and do the
    following:

    Focus on building customer relationship and increasing the brand value


    Bundling of products to provide a one-stop solution for the consumers
    Aid in customer knowledge to gain long-term benefits in form of customer retention and network effects
    Cross-utilization of the service capabilities of the commercial division to boost the post-sales in the
    customer division

    In a highly competitive market where everyone is playing on the latest technological innovations, it makes more
    sense to create a niche positioning in the market. Retrospectively, Apple has followed the same strategy by
    means of brand building and positioning itself as a premium product by means of design and bundling.

    Q2. Which strategic model/s did you use to analyze the situation?
    For the analysis, the Porters 5 forces model has been used.

    Buyer Power: High. The consumer has a wide array of options to choose from, especially when all the
    brands are providing the same benefit.
    Supplier Power: Medium. With increasing number of players in any market, the suppliers have the
    power to switch to any of the brands, although the volumes would restrict this power from increasing to
    a high extent.
    Threat of Substitutes: Medium. With high amount of technological innovation taking place in this
    market, there is a threat of shift of the consumer from the current offerings to a new gadget (smartphone,
    tablets, etc.) for their basic uses.
    Barrier to entry: High. The industry requires significant investment, and brand building to be able to
    make a mark.
    Rivalry: High. A high number of PC manufacturers working on the same technology, and little to
    differentiate.

    Q3. How has the PC industry evolved since 1998?


    The PC industry has been more or less a consumer-driven one since the late 90s. The major infliction points in
    this industry in terms of its evolvement have been a few albeit substantial to talk of. Apple, with the highest
    revenues and profit today, had introduced the parameter of design and a closed, but well serviced, ecosystem to
    boost its image in the minds of the consumer. Also, it focused on retailing as a major driver of its sales in the
    consumer market. Another significant change was the focus on customization of the PC for each consumer. Dell
    which mastered this front, reaped benefits by realizing that each consumer has different needs. All in all, the
    whole industry started moving towards a tiered product portfolio for different segments of its consumers. While
    some focused on the tiered segments alone, some focused on creating reliability like the brand Thinkpad, some
    on the design and ecosystem like Apple, and some on customization like Dell.

    You might also like