took its No.1 competitor, Compaq as the worlds leading direct computer systems company and stands as a premier supplier of technology for the Internet infrastructure.In similar fashion, Dell has been gaining market share in the higher margin PC server market segment, which is closely tied to and compliments the corporate PC market. The PC server market has been dominated by Compaq, Hewlett-Packard and IBM, however Dell announced Q4 Fiscal 2000 results that were surprisingly strong in this product segment. For the quarter, Dell shipments were up 43 percent overall, more than four times the industry rate and at multiples of the industry in all product categories, customer segments and geographic markets. Shipments of Dell Power Edge servers increased 63 percent and Dell accounted for 30 percent of global server growth, expanding at more than three times the industry rate and adding two full points of market share (Dell Delivers, 2001). 3Companies in industries identified to be in the maturity stage understand that it is critical to increase market share domestically and aim toward expansion in less mature and emerging international markets. Growth at twice or more the overall industry rate in most geographic areas and product markets is a goal for Dell during the 2001 fiscal year.So, to revisit the problem a softening, or flat at best, industry market in the context of overall dampened consumer confidence coupled with the fact the PC industry is in a late growth or early maturity stage. The personal computer industry seems headed for a price war in its efforts to adjust to a slowing market. The entire industry is experiencing higher inventories and simultaneously intensifying competitive market environment. Several firms have dropped out of the retail computer market. And Apple has serious financial problems. To a considerable extent, what happens during the shakeout has been predetermined by how well the brand has been position...
