about components and how the components are used within the computer and other technological products. This knowledge is used to make selective purchases and forces the computer industry to offer the products that consumers want. Therefore, it is important that the computer industry establish the ability to produce products based on each consumer뭩 needs. Technology The computer industry is a technology industry and is therefore greatly affected by the technological changes that take place in the world. Technological advances occur very quickly; therefore, companies must stay abreast of these changes and incorporate them into their products in order to remain competitive in the industry. Manufacturers must decide which new technologies will be the most cost-effective to incorporate. Section 5 Internal Environment Competitive Analysis Competition in the diversified personal computer industry is aggressive and numerous. Hewlett-Packard competes with some of the worlds largest companies and smaller highly specialized firms. Hewlett-Packard's competition can be separated into the following areas: personal computer, software, and computer services industry. The personal computer is the largest section of the computer hardware industry. The personal computer industry has recognized an average annual growth of 20% in PC shipments between 1991 and 1998. It is anticipated that the growth will be between 15-20% over the next several years. Lower prices, improved performance, and demand driven by the Internet will provide this growth.(3) The PC segment is the most competitive segment of the computer hardware market. Consolidations and shakeouts of the second and third tier PC vendors have left approximately 65% of the market share with the top 10 vendors. The major competitors in the personal computer industry include Compaq/Digital, Packard Bell-NEC, IBM, Dell and Hewlett-Packard. The chart below shows world wide unit shipments for 1998. As...
