For more information
Call 1-800-351-0222
Call 1-800-351-0222
Mid-Sized Office Computers
Term Paper ID:27841
Essay Subject:
Marketing plan for mid-sized office computers in 1989, including discussion of: product description, market overview, environmental analysis, product history, threats & opportunities, & implementation of the plan.... More...
13 Pages / 2925 Words
8 sources, 20 Citations,
TURABIAN Format
$52.00
More Papers on This Topic
Paper Abstract:
Marketing plan for mid-sized office computers in 1989, including discussion of: product description, market overview, environmental analysis, product history, threats & opportunities, & implementation of the plan.
Paper Introduction:
MARKETING PLAN: MID SIZED OFFICE COMPUTERS
Executive Summary
The mid sized office computer business is still expanding rapidly, though less so than in the past. Nascent markets continue to open up like small business, education, and the Pacific Rim countries--in which this firm will focus its attention on in the next years. A recession is possible within the next twelve months, but even if it materializes, this company will likely experience a less than anticipated aggregate sales increase, not a decrease as in many industries. Miniaturization is the key trend in our product line, reducing real cost per information unit and increasing reproductivity in the process. As for potential dangers, Hitachi, Fujitsu, and other big Japanese companies pose a considerable long term competitive threat, which
Text of the Paper:
The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper.
While a few firmshave tried to monopolize the market for software by making theirsincompatible with other hardware, this tactic has generally failed (forexample, Texas Instruments with its home computer). Product Description Computers are machines that perform calculations and process andstore information on a large scale. 5. Wash., DC: Brookings Institutions, 1988.1989, U.S. Togetherwith "software," which provides the programming to the computer itself,called "hardware," such machines have revolutionized business, science, andtechnology.1 Becoming increasingly powerful, they have declineddrastically in cost per unit of information processed during the last fourdecades since their inception. 239. This is critical in the evolving "age of information"that is coming to dominate the increasingly service-oriented economies inthe industrialized world.1 Indeed, even the "newly industrialized" (forexample, Taiwan and Brazil) and "less developed" countries (for example,most of Africa) are becoming more dependent on computerization as theyproceed into the twenty-first century and try to catch up with the UnitedStates, Western Europe, and Japan. And concomitant to competitiveness inhardware has been U.S. leadership in software, which is vital to theefficient use of computers in general. Andmost importantly nowadays, domestic mainframe manufacturers have continuedtheir dominance in the world market. As for potential dangers,Hitachi, Fujitsu, and other big Japanese companies pose a considerable long-term competitive threat, which this firm will meet through continuedinvestment in new product development. Thus, the next decade will witnessthe first serious challenge to American leadership in the computer fieldsince its inception some forty years ago. Even inHollywood, computers are being employed to create film footage with no setsor actors, as in 1984's "The Last Starfighter." As exemplified by the experience with personal computers, the task athand for computer marketers in general is to broaden the customer base bymaking them more "user-friendly" and simultaneously to have more personneltrained to utilize the machine's advantages.5 Up till now, some companieshave bought computers only to find them under-employed for lack of skilledpersonnel. 23.11. Market Overview Domestically, the computer market totals 67 billion dollars, which isabout half the worldwide total.2 This does not include software, in whichU.S. 3. 3. Footnotes 1. Other arrangementssimilar to this include the pooling of resources to purchase and usemainframes. Instead, a realistic model would include elementssuch as continuous investment in creating a superior, closely-heldtechnology; advanced differentiated products over which an innovator holdsa (temporary) monopoly; and the significant monopoly rents received by aninnovator justifying and financing continued investment in research anddeveloping. Flamm, p. Only through some degree ofmonopoly, argued Schumpeter, could the economic benefits of superiortechnology be captured by an innovating firm in a market economy.9Frequently aided by patent protecting, some inefficiency in the allocationof resources attributable to monopoly power is tolerated in exchange forgains from creating new technology. should rise as these countries continue to groweconomically. Various politico-economic factors will act to expand the need for anduse of computers in the future.18 In the field of science, spaceexploration will require more and bigger computers as the sheer size ofprojects increases. 2. But Japanparticularly, along with Western Europe, poses a challenge to the U.S.industry.13 Already Japan dominates the chip market in the U.S. "Competing by Computing." National Journal, 8/6/88, pp. In addition, ascompanies become more international in scope and larger generally, so willthe need exand for more computer power. Such a policy has enabled computer companies likeFujitsu and Hitachi to absorb huge losses in the mid-198 s while they havedone the necessary research and development to help build the nextgeneration of hardware. Edward Feigenbaum & Pamela McCorduck, The 5th Generation (Reading, MA: Addison-Wesley, 1983), p. computers have become approximately 3 percent lessexpensive annually per unit of information processed and stored over thepast four decades. As for opportunities, miniaturization will continue to expand themarket for computers.15 In fact, today's personal computer has the samepower as the "supercomputer" of two decades ago and laptops and portablecomputers continue to become more powerful and lighter. 93-95.1 . Easy-to-Understand Guide to Home Computers (NY: Consumer Guide, 1982), p. G. In thecommercial sector, as the U.S. And this trend promises to continue, asapplications spread beyond computation, word processing, and record keepingto new fields. Environmental AnalysisThe American Computer Industry The U.S. Miniaturization is the keytrend in our product line, reducing real cost per information unit andincreasing reproductivity in the process. Objectives for Next Year As product manager of mid-sized office computers for one of the majormainframe manufacturers in the U.S., I must steer the firm through changesin the computer market and economy in general. 9. NASA (National Aeronautics and Space Administration) hasemployed computers to simulate space travel and the Department of Defenseto design weapons systems and simulate nuclear war among other uses. The market for computers is moving in certain directions into thefuture.16 Price with respect to performance is decreasing nearly 3 percent a year. This has rendered Japanese firms, including those in thecomputer industry, inordinately highly leveraged by American standards, butthey are likely to be bailed out with easy credit if they encounterfinancial difficulty. Horizontal expansion into the fields of nuclear biologyand computational physics is accelerating. In addition, the trend toward more "user-friendly"hardware will also widen the market. Another way to broaden the computer market is through leasing tosmaller organizations.6 By time-sharing, for example, such establishmentsare able to tap into powerful and expensive computers and take advantage oftheir capabilities. In 198 , its Ministry of International Tradeand Industry (MITI) "targeted" supercomputers, the latest generation ofhardware, which means that the government helps provide low-cost financingand other assistance to appropriate companies in the development of theindustry generally and the exploitation of international markets inparticular, much as it did with autos in the 196 s. The 5th Generation. Indeed, by the 195 s, companies like IBM had afirm toehold in the U.S.--and world--computer market. NY: Basic, 1984.Stokes, Bruce. For many smaller businesses, purchasing expensivehardware is not feasible, but time-sharing often is. 3-7.----------------------- 12 Defense spending is on thewane as the Cold War winds down, so this company's sales to the militarywill likewise decline. Flamm, p. computer companies is quitedifferent from the standard economic model of perfectly competitivemarkets.8 The ideal of efficient, competitive markets producing an optimalallocation of resources rests on the assumption of a mature, widelydiffused technology used to produce a standardized commodity. At any rate, the huge exponentialincreases in the power of each succeeding generation of computers hasenabled American hardware to remain highly competitive despite higherprices per individual machine. And while not intendedinitially, technological "spin-offs" benefited the civilian economy too ascommercial uses expanded. A recession ispossible within the next twelve months, but even if it materializes, thiscompany will likely experience a less than anticipated aggregate salesincrease, not a decrease as in many industries. Concurrently, advertising will be re-oriented to periodicalscatering to the education and small and mid-size business communities. "Supercomputers," p. Indeed, some firms have purchased hardware at times more forprestige or to attract high-quality engineers and scientists to theirorganization than for intrinsic need. 4. The rate of technological advance in the computer industry hasexceeded that of any other historically by at least one measure. As to products in general, the company will continue tofocus on special-purpose computers that cater to specific industries, likepetroleum, motion pictures and airlines. 1. Rogers & Larsen, p. Implementation Plan To implement the objectives just discussed, sales efforts will beshifted to some extent from defense to education and small businesses.This will be done through direct sales and marketing staff and commissionedagents who focus on the latter two sectors. More pronounced than horizontal is verticalexpansion as firms differentiate the market more sharply with respect tohigh- and low-end product. Kenneth Flamm, Creating the Computer (Wash., DC: Brookings Institition, 1988), p. Hence, the U.S. Its initial cost might be prorated according tosales (like store rentals at a shopping center) and operating costaccording to use. 1981). In the commercial sphere, computer applications continue to expand.Petroleum companies are using them to help find oil, invariably a risky andexpensive undertaking.4 Apple uses its supercomputer to help design itsline of home and business computers. NY: Consumer Guide, 1982.Feigenbaum, Edward, & McCorduck, Pamela. 2 26-28."Supercomputers." Business America, 4/11/88, pp. Everett Rogers & Judith Larsen, Silicon Valley Fever (NY: Basic, 1984), pp. companies account for nearly three-fourths of world sales. 17-18.18. Allen. Cray Research, for example, concentrates on the15-2 million dollar supercomputers while numerous other firms manufacturerrelatively inexpensive personal computers as their specialty.Technological advances are further segmenting the market as parallel andmultiple processing provides machines with unique capabilities andperformance. Software development is key to expansion of the computer market intothe commercial sphere.17 As the market devolves into less sophisticatedusers, pre-developed applications become more important. Stillother applications by the federal government include econometric modeling,car crash simulation, pollution analyses, and the leviathan task of recordkeeping by the likes of the Internal Revenue Service and Social SecurityAdministration. Easy-to-Understand Guide to Home Computers, p. Additionally, overseas sales to the Pacific Rim countries of SouthKorea, Taiwan, etc. As early as the 194 s, economist Joseph Schumpeter noted thedistinction between conventional accounts of competitive markets and thedynamics of technology-driven industries. 32-33.15. C. 12-14.14. Such a policyexemplifies the close cooperation between government and business in thatcrowded, natural resource-poor island which must trade to live.14 Inaddition, banks and industrial companies have close ties often, with theformer investing in and financing the latter, as well as having the samemembers sitting on their respective boards (which is generally illegal inthe U.S.). The national Weather Service (alongwith its overseas equivalent, the European Center for Medium-Range WeatherForecasts) has pioneered the use of computers in weather modeling andforecasting. Martin. 39.13. 2 6.16. Schools and universities willbe targeted for smaller models and small to mid-sized businesses for allmodels. In the case of graphics, Evans andSutherland of Salt Lake City produces a machine that specializes in complexmodeling and simulation. In comparison,the real cost of cotton cloth, the commodity most affected by mechanizationand the introduction of the factory system in the early stages of theIndustrial Revolution, fell 3.4 percent per year between 187 and 1815.This constitutes a foundation for the often stated observation that moderntechnology in general is improving at a faster rate than at any time inhistory.11 Product History Tracing its roots to World War II, the computer was developed largelythough the financial prodding of the federal government, particularly themilitary in its efforts to build the atomic bomb and break enemy codes.After the war, tensions with the Soviet Union led to continued weaponsdevelopment, in which computerization played an increasingly importantrole.12 Advanced military aircraft, missilery, radar, and naval ships allrequired the applications of computer technology. Finally, sales staff and agents will increasetheir efforts in the booming Pacific Rim area. Thisscenario is not applicable when a technology-intensive product likecomputers is considered. This subjectof international competition in computers involves unique facets, includingthe role of government and international trade relations, which areinvariably colored by the vagaries of international politics. Threats and Opportunities The modern computer industry is international in scope, with the U.S.maintaining a substantial lead over its competitors. Industrial Outlook. Duringthe past four decades, the hardware cost of processing information hasdropped by an estimated 28 percent per annum in real terms. The Japanese Economy (NY: St. And commercial andmilitary uses were "synergistical-ly" raising the rate of return ofcomputerization in general with respect to the aggregate economy. In defense, "star wars" and the B-2 bomber (if they survive cuts in funding) are so extreme in scope and costthat advanced supercomputers are inherently part of their programs. 238.2 . Ibid., p. In the financial services sector--banking, insurance, etc.--economicmodeling is being used more extensively to render investing and bankingmore profitable and efficient to clients and firms alike. Feigenbaum & McCorduck, pp. 8. In thepast decades, such hardware sales have risen at 1 -2 percent annual rates,exhibiting some cyclicality in the recession of the early 198 s. computer industry can be described as oligopolistic, witheach firm carving out highly delineated niche markets based on technicalspecifications.7 Analogous to the commercial aircraft industry, IBMdominates the computer sector like Boeing that for passenger planes. C. This "Schumpeterian" view of theeconomics of technology and innovation has been particularly applicable tothe U.S. NY: St. Suffice itsay, however, that, like the auto industry, the arena of computers islargely a global one nowadays. And research and development will concentrate on new systemsfilling other singular industrial niches, whose markets are highlyprofitable for this firm. Compatibility is theoperative trend in the industry, and this will no doubt enhance the overalluse of computers and widen their applications. Silicon Valley Fever. Ranging in size from the smallpersonal computer (PC) to the industrial super-computer, they are complexelectronic entities whose major component is the silicon chip. 26-1. And as the world evolves intothree major trading blocs--North America, Japan and East Asia, and theEuropean Economic Community--competition for markets will sharpen, creatingthe necessity of more computerization. 1989, U.S. Inaddition, sales of specialized computer systems will be intensified,directed at relevant industries like petroleum, motion pictures, andairlines. Ibid., p. andglobally, and Western Europe after 1992's unification of national marketswill no doubt encourage a stronger computer industry there. 126. Nascent markets continue to open up--likesmall business, education, and the Pacific Rim countries--in which thisfirm will focus its attention on in the next years. 134-36. Martin, 1981.Easy-to-Understand Guide to Home Computers. "Supercomputers," p.3.19. BibliographyAllen, G. Recession is possible within the year, so corporatesales are forecast at only slightly higher than this year's. But Japan presents the most formidable challenge to U.S. 7. A mission to Mars and construction of a space stationexemplify such enormity and complexity. "Supercomputers," Business America, 4/11/88, p. As toexpanding markets, the education and small business sectors will be focusedon. Overall,the U.S. Bruce Stokes, "Competing by Computing," National Journal, 8/6/88, p. Dupont and other chemical andpharmaceutical firms employ their computers in process and quality control. 4. preeminencein the world computer market. computer industryhas succeeded largely because it has created a "technological monopoly" ofsorts that allows it to relegate price secondarily to capability andperformance. And downsizing helps keep pricesdown, along with increases in volume and economies of scale. For example, companies at an industrial park or retailers at ashopping center can buy and install such a unit at a central location andtap into it when needed. 3.17. 2 8. 6. MARKETING PLAN: MID-SIZED OFFICE COMPUTERS Executive Summary The mid-sized office computer business is still expanding rapidly,though less so than in the past. The nature of competition among U.S. Creating the Computer. 2 27. In contrast, U.S. The Japanese Economy. Rogers & Larsen, pp. Product segmentation withregard to financial services and graphics is becoming more delineated asnew, smaller firms enter the market. 1.12. Ibid., pp. is still the major supplier of computers to the world, but Japanis challenging that position, particularly in the next generation of"supercomputers," the most powerful, state-of-the-art hardware.Traditionally, this country has initiated and subsequently dominated themarket for the most advanced mainframe computers, leaving the older, lower-tech models to be increasingly manufactured abroad. Concomitantly,there will be a substantial increase in the number of programers,technicians, scientists, engineers, and other trained personnel workingwith computers. Flamm, p. Reading, MA: Addison-Wesley, 1983.Flamm, Kenneth. The federal government has been a major computer customer and a primeimpetus to its development.3 Los Alamos and Livermore NationalLaboratories have employed them for complex computations in the fields ofnuclear physics and fusion research. Industrial Outlook (Wash., DC: Commerce Dept., 1989), p. computer industry.Productivity Computers exemplify a product whose continual technologicalimprovement has increased productivity with regard to "information." Byenlarging the capacity and raising the speed for processing and storinginformation, U.S. enters the "post-industrial age" and mustincreasingly depend on high technology to compete with the rest of theworld, computers will take on greater importance in new product and servicedevelopment and economic efficiency to keep costs down. Wash., DC: Commerce Dept., 1989.Rogers, Everett, & Larsen, Judith. Thus, the future points to both anexpanding aggregate market for computers and greater segmentation of thatmarket. Thus,computers represent a hugely successful example of government-inspiredindustrial policy, which might have applications for today. computer companies tend to focusmuch more on the short term and may begin to suffer from the country's much-publicized shortcomings in education. pp.
If this paper is not what you are looking for, you can search again:
or
We can write a Custom Essay just for you.
Browse Essays by Subject