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Introduction In this paper I will discuss the industry structure and the behavior of firms in the Personal Computer Industry The personal computer industry has five leaders Compaq Computer Corporation CCC Dell Computer Corporation International Business Machines IBM Hewlett-Packard and Gateway Industry Survey Apr 2000 The PC industry as discussed in the paper is comprised only of homebusiness use machines not mainframes databases or any kind of servers or super-computers The PC industry is a fast-growing consumer-based oligopoly I will prove the latter through the use of industry characteristics and firm behaviors by giving an overview of each leading firm and their behaviors then by combining them into an industry analysis The companies will be addressed from top leader to bottom Company Overviews Compaq Computer CorporationCCC is the current industry leader CCC boasts a 1999 market share of 128 However this figure has declined slightly from its 1998 share of 134 The dip is due to Dell Computer Corps heavy presence in the small PC market Industry Survey Apr 2000 Compaq has a wide range of PC products from smaller less expensive machines to more costly high-tech systems CCC has been most successful with their smaller machines targeted to the homefamily segment because they are able to sell large quantities However Compaq has been unsuccessful in retaining customers because most of them were pleased with their smaller machines and did not upgrade to CCCs more expensive high-tech systemsHamblen 1-2 Customer retention has been a problem for the forty billion-dollar company Hamblen 1-2 It is my assessment that Compaq does still remain the leader because their products are very easy to buy for the uneducated consumer You may simply walk into the WIZ or BEST BUY and there are five or so Compaq machines all competitively priced with a good range of attributes usually not the best that a veteran user would require For instance CCCs newest product the iPac is a very simple-to-use inexpensive machine
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