8/9/2019 The Profitless PC

1/12

Group Assignment I

Case of the Protless PCSubmitted By – Group 6 | Section B

2013010 Arti

2013035 Prani

201303! S" Su20130#0 Saga

2013052 Srish

2013055 %an

201305&%ihuSath(

20130&& )isha

20130!& *ash

20131#& Amru

8/9/2019 The Profitless PC

2/12

+hat are the 'e( characteristics o, the P- inustr(.

• PC industry is highly Price Competitive

 ma'ing a P- is not that i/cut" ,e arriers to entr( to the mar'et

• Margins are low

surie on post4arrant( support an consuting

• Price Fluctuations in industry is high

sua( prices are ecreasing

• Vendors Keep Low Inventories

Prices are 7uctuating

• Its a ris!y industry

-ompetition ees o, inustr( ma'e pro8t margin preictaiit( i

-ustomer eman an esire ,or innoation cou a9ect reenue

margin

8/9/2019 The Profitless PC

3/12

Porters 5 ,orces

"ivalry withinthe industry ishigh with eachvendor trying

to reduceprice# innovate

to as! $orpremium#

provide end toend solution"

Substituteproducts li!e

tablets%smartphones are eating

into the PCmar!et share&

Bao$ s

muand

com

(hreat o$ newentrants is

moderate asbiggest entry

barriers are costand distribution

) can be ta!en careby online plat$orm*

Bargaining power o$buyers is high as

they have multipleoptions to go to as

they are onlyconcerned about

speci+cations andcost&

8/9/2019 The Profitless PC

4/12

,--./0,122 Is the case relevant3

• :es the issues that hae een raise sti hos true ,or the current inustr(

1" )oes not or' on ;

8/9/2019 The Profitless PC

5/12

-urrent state o, P- inustr(

 Fo I)-Cs ,orecast ,or P- saechange since $une 2011" Sou

• Groing eman ,or taets ansmartphones competing ,or P- mar'etshare

•  Dhese aso proie a iae computing pat,ormcurrent(H act as a repacement o, P-

• engthening o, the repacement c(ce ,or P-proucts or prompting consumers to u( cheaperoptions ,or the nees not su/ce (taetsJsmartphones

8/9/2019 The Profitless PC

6/12

Proems at Pra@im• -ompan( ha no particuar target auience

•

Gross margin ,or consumer iision roppe to 12K• Poor 8nancia per,ormance resuting in pummeting stoc

• -ash o, o schoo thoughts s ne thoughts• ;Dhis use to e a technoog( compan(" *o e ust ta' mar'

garage";

• -ommoit( usiness s uiing a serice scape

• Dop taent eaing

+hat cou Pra@im o.• >oo inas approach

• >ocus on sharehoer aue

8/9/2019 The Profitless PC

7/12

+hat is inas Approach• Bui a genuine reationship ith customers

rather than,ocussing on ust ma'ing a sae

• Bui a serice scape – unes peripherasso,tare an consumaesN etter customerserice an technica support

• -reate a presaes sta9 o, aout &00 ho cananser ?uestions in pain

8/9/2019 The Profitless PC

8/12

>ocussing on sharehoer aue

• >ocus on commercia segment – accounts ,or &0K o, Pra@ims saes 4 an iinestment in consumer mar'et

•

Se commercia prouct in consumer segment• Qeuce spens on mar'eting GRA an customer serice in customer segm

• Qeuce cost ut 'eep the seing price high to hae positie contriution munit

Pros Cons

• I$ bottom line improves#shareholder value willimprove

• Consumer segment hadi'erent re8uirement commercial

• "etention o$ top talent   • "is! o$ losing sales sinessentially a price senindustry

• 9ature o$ industry dem

investment in mar!etiactivities

8/9/2019 The Profitless PC

9/12

ocus

• Promotiona an saes inestcreate ma@imum aareness accessiit(

• Inest in QR)" Since Pra@im compan( ,ocus on eeopinso,tare an technoogies thsere the taste o, moern co

• Since current mar'et is satur

ne mar'ets especia(

8/9/2019 The Profitless PC

10/12

8/9/2019 The Profitless PC

11/12

 2N -hange in the prouction setup – ,or consumersegment eices

3N reeancers

3N -ontractua +or',orce instea o, inesting in ,u

or'ers#N Inest in ca centres 4 utsource a part o, or'

5N -reate a serice4ueprint

8/9/2019 The Profitless PC

12/12

Qe,erences

•

httpJJtechan"time"comJ2013J0#J22Jcan4the4pc4resurrect4itse,J 

• httpJJ"theguarian"comJtechnoog(J2012Japet4pc4mar'et4ana(sis 

http://techland.time.com/2013/04/22/can-the-pc-industry-resurrect-itself/http://techland.time.com/2013/04/22/can-the-pc-industry-resurrect-itself/http://www.theguardian.com/technology/2012/apr/25/tablet-pc-market-analysishttp://www.theguardian.com/technology/2012/apr/25/tablet-pc-market-analysishttp://www.theguardian.com/technology/2012/apr/25/tablet-pc-market-analysishttp://www.theguardian.com/technology/2012/apr/25/tablet-pc-market-analysishttp://techland.time.com/2013/04/22/can-the-pc-industry-resurrect-itself/http://techland.time.com/2013/04/22/can-the-pc-industry-resurrect-itself/