P were to have financial troubles, competitors such as IBM are posed and ready to snatch up lost market share. The same can be said about HP, it뭩 the nature of the game. One company뭩 downfall becomes another뭩 windfall. Major suppliers: Major suppliers include firms such as Intel, the number one supplier to all PC manufacturers for chips. HP is susceptible just like any of the other PC manufacturers to Intel뭩 prices and availability. This gives Intel the corner in the market, and strength when it comes to affecting HP뭩 operations. If HP does not have the components needed to make its products, customers do not receive their products, resulting in unhappy customers. Section 4 External Environment Industry Environment The diversified computer industry (PCs, imaging products, servers, e-services, software, etc.) has become the world뭩 largest revenue generator and one of the most rapid growing industries during the past 10 years. Multiple new entrants and incumbents are fighting for market share and profits. Company profitability does not always depend on its longevity due to short product life cycle. Differentiation versus Commodity The personal computer, imaging and network servers industry is becoming a commodity producer. Home and business desktop PCs, imaging products, and network servers are very common and are supplied by nearly every vendor in the industry. Components for PCs, imaging products, and network servers are attainable in large quantities from a variety of suppliers and at very affordable prices. There is a great amount of similarity in the products due to the fact that vendors are using the same suppliers for their components. Because of this, price becomes a more important factor when trying to sell PCs and imaging products. E-services and software are product segments where differentiation does exist. E-services require the newest technology and IT professionals that can provide ...
