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Vandalay Industries Competitive Analysis

2480 words - 10 pages

MKT 441Vandalay IndustriesVandalay industries is a mid-sized company and a manufacturer of desktop and laptop computer systems. Several competitors exist which have an impact on the marketing opportunities available to Vandalay Industries. The marketing objectives of Vandalay industries must be able to consider and overcome the marketing tactics of competitors such as Dell and Hewlett Packard. In an effort to determine the best marketing tactics available to Vandalay Industries, several topics must be considered, include competitors, a sales forecast, and a SWOT analysis.Competitive AnalysisVandalay Industries is a manufacturer of desktop and laptop computer systems. The primary competitor in the US market for low-priced desktop and laptop computers is Dell, a company which represents 32% of the market. Hewlett-Packard follows closely behind Dell with 25%. As of mid-2008, Apple and Acer vied for third place with 8.1% and 8.5% respectively (Los Angeles Times, 2008). Had Acer not acquired Gateway in 2007, Apple would surely have taken the third-place position in U.S. market share.The majority of computer systems produced by Vandalay Industries are purchased by small businesses and individuals. As a small to mid-sized company, Vandalay Industries must use the internet as a primary means of marketing. Dell sells most of it's equipment directly to consumers whereas Hewlett Packard computers can be found on the shelves of most consumer electronics stores. Vandalay Industries' computers can be purchased directly over the internet or by contacting a telephone sales representative. Therefore, Dell is the primary competitor, though as Vandalay Industries' computers become more readily available in consumer electronics stores, competition from Hewlett Packard's and Acer will become more of an issue. However, Apple does not produce PC-compatible computers and although Apple is close to representing a third of the market share in desktop and laptop computers, Apple computers are not a significant threat as comparing an Apple to a PC is similar to comparing an apple to a pear; similar but different enough to say that one who buys an apple will most likely not be convinced to buy a pear instead.One of the most important keys to success for a computer manufacturer is the product cycle (Berkson, B., Maged, G., Shah, R., and Tantzen, B., 1997). When a new product is introduced, the manufacturer can improve profits by bringing that product to market as quickly as possible. Innovation is important as well, though Dell does not introduce much in the way of original or novel ideas, preferring to produce computers built on-demand from readily available hardware. Hewlett Packard does introduce novel and innovative products, but few can match the quantum leaps in innovation produced by Apple. Any computer equipment vendor must be able to distribute the product quickly, while maintaining as small of an inventory as possible because as new systems become available, older...

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