Case Study Example | Topics and Well Written Essays - 500 words - 1

Case Study ExampleBoth companies are facing the prospects of the impending technological obsolescence of the personal computers, should they not be able to update their product design and construction to the present trend in consumer.Clients tastes are moving towards maximum integration, involving all-in-one solutions for personal, business, and other consumer applications. The industry is thus experiencing a consolidation that is forcing IT hardware, OS and applications developers to combine into converged firms those unable to do so will have to quickly develop internal capabilities to meet the integrated technology which is super unlikely or certainly lose out market share to the competition (International Business Times, 2011).New trends include (1) growing popularity of tablet computers and other wide awake web surfing gadgets that are expected to eventually and totally replace personal computers (2) cloud computing, which involve wharehousing data in third party servers and (3) verticalisation, which involves an integration of product stages such that hardware, operating systems and applications developers tend to assimilate each others businesses. Presently, neither Dell nor HP are in the position to significantly meet these trends in the immediate future.Looking back, the same strategies that gained early success for Dell and HP are no longer relevant. Dell relied on supply chain cost-cutting efficiencies, season HP on product diversification (calculators to computers to printers). These early strategies were not proprietary and were quickly copied by competitors. Admittedly, a major strategic error was for DELL and HP to cut pop out on their R&D just as Apple surged on with its iPod , iPhone and iPad products. Consequently, HP and Dell sales are cut down (The Economic Times, 2011).The two companys leadership in the PC technology has also become the reason for its present inadequacy. PCs are still seen