POTERS FIVE FORCES MODEL APPLIED TO COMPUTER INDUSTRY

THREAT OF NEW ENTRANTS

(Barriers to entry)Switching CostAccess to distribution channelsCapital requirementGovernment policiesProduct Differentiation

BARGANING POWER OF BUYERS

• The strength of the PC buyers has basically evolved from the personal computers becoming commodity like item.

• Backward Integration.

BARGANING POWER OF SUPPLIERS• Suppliers exerts power in the industry by

threatening to increase price.• Power supplier can squeeze industry

profitability.• In the computer industry.• Supplier is dominated by few firms.• Suppliers product is an important input to the

buyer product• Suppliers product has few substitute.

THREAT OF NEW SUBSTITUTES

• PDA : Personal digital assistant is a mobile device also known as a palmtop computer. Newer PDAs commonly have color screen and audio capability, enabling them to be used as mobile phones(Smart phones) web browser or portable media players. Many PDAs can access the internet, intranets or extranets via Wi-Fi or wireless wide area network. Many PDAs employ touch screen technology

Contd….

• SmartPhone: Smartphone is a mobile phone offering advance capabilities often with PC- like Functionally. There is no standard definition of the smartphone. Fore some, a smartphone is a phone that runs complete operating system software providing standardized interface and platform for application developers. For others, smartphone is simply a phone with advance features like e-mail, internet and e- book readers capabilities and/or a built in full keyboard or external USB keyboards.

Contd….

• Palmtops:In a hand held PC or H/PC For short, is a term for a computer built around a form factor which is smaller than any standard laptop computer it is some time referred as Palmtops.

RIVELARY AMONG EXISTIM FIRMS

• Jockeying for strategic position.• Using price competition.• Staging advertising battles • Increasing consumer warranties and service • Making new product introduction

CUTTHROTE COMPETITON IS LIKELY TO OCCUR WHEN…

• Market share • Lack of differentiation• Price competitors • Divers competitors • Staging advertising battle

SWOT- ANALYSIS OF HCL INFOSYSTEM

StrengthHCL is a well-known brand.Aggressive Marketing Strategy.Strong Channel of Distribution.Products available can provide solutions to

any environment.Customized products for every type of

customer.

WEAKNESS

Not been able to establish an entry barrier for competitors.

Services provided are not up to the mark.

Channel Partners of HCL are not much capable in order to provide best services to the potential customers.

Services provided are not up to the mark.

Channel Partners of HCL are not much capable in order to provide best services to the potential customers.

OPPORTUNITY

HCL products due to their price and quality factor over the other competitors are gaining popularity. HCL should capitalize on to this and can have the maximum sales out of it.

The new technology that is being provided by HCL is one big opportunity for HCL and HCL should come to the market continuously with innovative and new technology products.

Lower rates of different models give opportunity to HCL for grabbing the desktop market.

ThreatsPossibility of more new entrants into the same

business cannot be ruled out.

HCL laptops and desktops are facing a tough competition from Compaq, HP and IBM in higher segments and from Sahara and Assemblers in lower segment.

HCL is also facing a tough competition from Compaq and HP in higher & middle segment and from Sahara in lower segment of Laptops market.

PROBLEM STATEMENTPreliminary mapping of the market for HCL

Desktop & Laptop using channel partner inputs.

OBJECTIVE To evaluate the growth of HCL Desktop &

Laptop in Delhi & NCR area in the following context.

Satisfaction level of channel partners Various promotional activities that channel

partners are doing to promote HCL Desktop& laptop in Delhi&NCR

Contd….

Trade Loyalty for HCL brand To find out the consumer preference of HCL

Desktop &Laptop in Delhi &NCR area among various Desktop & laptop brands.

To find out customer satisfaction level towards HCL laptops & Desktop in Delhi & NCR

RESEARCH METHODOLOGYResearch Design Sampling and Determination of sample size Sampling Plan: After deciding on the research approach and

instruments, the marketing researcher must design a sampling plan. This plan calls for three decisions:

1. Sampling Unit: The first question that arises when you decide to survey is: Whom to survey? The marketing researcher must define the target population that will be sampled.

The target population for my survey was customers and Channel Partners of HCL Infosystems Ltd. and my sampling frame was NCR Delhi.

2. Sample Size: Next important question arises: What is the size of population to be surveyed? Large samples give more reliable results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. A total of 154 interviews of Channel Partners and 100 interviews of customers were conducted in NCR Delhi region

Contd… Sampling Procedure: The other most important question in research is: How

to choose the respondents? To obtain a representative sample of the population, a probability sample of the population should be drawn. Probability Sampling allows the calculation of confidence limits for sampling error. Three types of probability sampling are described When the cost or time involved in probability sampling is too high, marketing researchers will take Non probability sampling. Some marketing researchers feel that non-probability samples are very useful in many circumstances, even though they do not allow sampling error to be measured

Contd…

Data source To meet with customers and Channel Partners and

asked to fill structured questionnaire. Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment.

Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.

Contd….

Collect the Information The data collection phase of marketing research is generally the most

expensive and most prone to error. The information collected should be both accurate and relevant as per as the requirements of research project. Depending on the requirement, the researcher has to work out a suitable data collection method.

Data Collection Methods can broadly be classified into two major categories listed below:

Primary Methods: When a researcher directly collects data then this method is known as primary method e.g. interview and questionnaire methods.

Secondary Methods: The data are termed secondary data when they were not originally collected for use in the research project under consideration; they were collected rather for use by some other person or for some other project.

Contd….

• Analysis of the Information • The next step in the marketing research

process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distributions. Averages and measures of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings.

Contd…

Presentation of findings As a last step of market research process, Results (findings) are

extracted from the Analysis of information and are presented to the related party. The researcher should present major findings that are relevant to the major marketing decisions facing management. The findings should be written in a concise, simple and objective orientated language.

For the purpose of my project, the analysis was conducted on the

basis of following conditions. I have earlier suggested that I am going to categorize the scores into various intervals. Now I have attached scores to all the parameters according to their importance.

To study the market share and growth of HCL Desktop & Laptop in NCR Delhi area and to suggest the strategy to increase it further

TOOLS USED FOR ANALYSIS

QuestionnairePercentage Analysis

The findings of this project are as follows:

Channel Partner survey Channel partners are experienced about the product. HCL is one of the key players in Laptops and Desktops in NCR Delhi and

have a close competition with Compaq, HP and Dell. HCL, Compaq and HP are the companies that are on the top in the mind

of Brand Oriented or Brand Aware Customers in NCR Delhi. Cost and quality are two major factors that are taken into consideration

by people while making the purchase. HCL is not focusing much on advertising in comparison to its competitors. As per channel survey People are more concerned about the after sales

service which is a weakness for HCL, since, it does not have good after sale service in comparison to the other market player.

Contd…

Customer Survey People are not very much aware about HCL’s other offerings like

software development, networking, Internet services, facility management and high end solutions; they only know that HCL deals in desktops, laptops and servers.

Most of the people think that HCL is a typical hardware firm and has no relations with software or software development.

Customer feels that computer is necessary as per customer survey. Awareness of HCL brand is high as 90% had heard about HCL. As per the customer survey 60% found that HCL is having

competitive pricing as compare to other MNC.

The conclusion of this project is as follows:

HCL is one of the market leaders in the field of Home PCs but the situation is not the same in Laptops and Desktops segment. Hewlett Packard (HP) retains the top slot with a market share of 37.8 per cent, while Lenovo occupies the second position and Acer third. But to sustain this leadership company have to improve its advertising policy. HCL can get more market share in Laptops and Desktops by increasing the expenditure on advertising.

Most of the people associate HCL with hardware products and very few know that HCL also provides IT solutions and software services too. They believe that HCL is typically a hardware company, hence, HCL have to break this myth and prove itself in other fields too.

Undoubtedly, HCL is a leader in after sales service but to cope up with this cutthroat competition HCL should improve in other fields too, for e.g., Quality and Technology are a few major names in the category and the list may go on and on. Corporate image of HCL is pretty good as compared to Compaq, HP and IBM. HCL should try to be more focused in its approach whether it is an end user client or a big deal with a big corporate or institution or organization.

Suggestions and Recommendations

HCL has a good brand image in the field of home PCs. But HCL is not popular in business

segment where Laptops and PCs are required. Company should also promote these products and utilize its brand image.

HCL is also not advertising much for its products frequently in print media and in television channel etc. advertising should be made frequent to let the people remembered the name of HCL Laptops and Desktops.

Relationship between the customer and the company is base of growth for any company. Company should maintain good relationship with its big customers such as institutions, corporate, schools, colleges and should also have good relations with end users. Company can send cards and invitation to the customers from time to time or on certain occasions.

Hoardings of company’s product should be kept at prime locations where maximum people can see it.

Until and unless after sales service of the company is not good, it is not possible for the company to increase the sales, HCL is also facing this problem in some areas of NCR Delhi. Hence it is recommended that company should open a few more service centers in the city.

LEARNING FROM THE STUDY It was a great opportunity for me to do my summer internship in HCL Infosystems Ltd., which is one of the

prestigious companies in India. It was a starting for me to get the knowledge of real corporate world. Today experience and knowledge of things is much more important than the degrees in hand. Although the learning’s were numerous in number but I have concluded a few as major learning’s and they are as follows:

I got such a good project at HCL Infosystems Ltd., which gave me the opportunity to meet the various people in the corporate as well as Government offices. Before this I have visited a few organizations but the experience of these visits have been and will be of tremendous help in my career. I came to know how to interact people of different attitude and of different mindsets, which will definitely help me in future.

Planning a day in advance and the activities that I am going to perform during that day gave me confidence in my planning and implementation. This project also exposed me and my skill sets to the corporate world, where I came to know my flaws and rectified them, but I sincerely believe that there is always some room of improvement.

I learnt how to communicate through non-verbal means in corporate world. • I was also an active member at customer demonstrations, which gave me confidence and knowledge

about how to convince a customer and handle all sorts of queries. I need to mention here that I was given a target to sell two Laptops on a given day by my Company mentor, and I able to sale laptops on that day. Although this may be considered a very small achievement by somebody, but for a newcomer youth like me it was a hugely satisfying moment.

•

BIBLIOGRAPHY

• Books• Marketing Management - Philip Kotler (Eleventh

Edition, Pearson Education, Inc.)• Principles of Marketing – Philip Kotler, Gary

Armstrong (Eleventh Edition, Pearson Education, Inc.)

• Marketing Research - G.C. Berry (Third Edition, Tata McGraw Hills)

• Marketing Research - An Applied Orientation – Naresh K Malhotra (Fourth Edition, Pearson Education, Inc. Pearson Prentice Hall)

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Contd…

Websites • http://www.hclinfosystems.com• http://www.hclperipherals.com• http://www.hcl.in• http://www.hclstore.com• http://www.google.com• http://www.channeltimes.com• http://www.idcindia.com• http://www.khoj.com• http://www.mit.gov.in• http://www.dqindia.com•