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Arti Mehta
Pranit Sood
S. Suchita
Sagar Jain
Srishti Arora
Vandana
Vidhusekhar
Sathyanathan
Disha Sharma
Nashit Ansari
Amruta
Porters 5 forces
Bargaining power of
buyers is high as
they have multiple
options to go to as
they are only
concerned about
specifications and
cost.
Substitute
products like
tablets/smartpho
nes are eating
into the PC
market share.
Rivalry within
the industry is
high with each
vendor trying
to reduce
price, innovate
to ask for
premium,
provide end to
end solution.
Threat of new
entrants is
moderate as
biggest entry
barriers are cost
and distribution
( can be taken care
by online platform)
Bargaining power
of suppliers is low
as there are
multiple vendors
and the industry is
facing stiff
competition based
on price
next killer app-the device that's coming after the PC-TV combo. Whoever gets there first will
leapfrog the competition. #Quoted from case
Problems at Praxim:
Company had no particular target audience
Gross margin for consumer division dropped to 12%
Poor financial performance resulting in plummeting stock price
Clash of old school thoughts vs new thoughts
This used to be a technology company. Now we just talk marketing
garbage.
Commodity business vs building a service scape
Cons
Pros
Cons
Execution Plan
Company Level:
Differentiation strategy with a Product
Life Cycle Focus
Promotional and sales investments to
create maximum awareness and
accessibilty
Invest in R&D. Since Praxim is technology
company, focus on developing new
software and technologies that could
serve the taste of modern consumer
Since current market is saturated, explore
new markets especially EMEA
Execution Plan
Consumer Level:
1)Better STP Tap the Untapped
Office users (B2B segment)
Less specification needs than industrial users
Bulk sales
References
http://techland.time.com/2013/04/22/can-the-pc-industryresurrect-itself/
http://www.theguardian.com/technology/2012/apr/25/tab
let-pc-market-analysis