Case Study Example | Topics and Well Written Essays - 500 words - 1

Case Study Example Both companies are facing the prospects of the impending technological obsolescence of the personal computers, should they not be able to update their product design and construction to the present trend in consumer. Clients’ tastes are moving towards maximum integration, involving all-in-one solutions for personal, business, and other consumer applications. The industry is thus experiencing a consolidation that is forcing IT hardware, OS and applications developers to combine into converged firms; those unable to do so will have to quickly develop internal capabilities to meet the integrated technology – which is highly unlikely – or certainly lose out market share to the competition (International Business Times, 2011). New trends include (1) growing popularity of tablet computers and other mobile web surfing gadgets that are expected to eventually and totally replace personal computers; (2) cloud computing, which involve wharehousing data in third party servers; and (3) verticalisation, which involves an integration of product stages such that hardware, operating systems and applications developers tend to assimilate each others’ businesses. Presently, neither Dell nor HP are in the position to significantly meet these trends in the immediate future. Looking back, the same strategies that gained early success for Dell and HP are no longer relevant. Dell relied on supply chain cost-cutting efficiencies, while HP on product diversification (calculators to computers to printers). These early strategies were not proprietary and were quickly copied by competitors. Admittedly, a major strategic error was for DELL and HP to cut down on their R&D just as Apple surged on with its iPod , iPhone and iPad products. Consequently, HP and Dell sales are cut down (The Economic Times, 2011). The two company’s leadership in the PC technology has also become the reason for its present inadequacy. PCs are still seen