Rackable Systems (SGI) was founded in 1999 as a specialist server company. At that time, all the other server making companies used the latest and best high technology chips or software which they bought from ADM or Microsoft to complete their own servers, and then they can provide customers services. SGI wanted to find a new way that they could enter the market without competition, and based on its unique server which meet customer needs better than its competitors and offer customers maximum flexibility and cost-effectiveness. SGI gained a profitable share in the server market and became the first company to try to eliminate the storage, networking, and cooling hardware for each server to work as a stand-alone entity. First of all, they …show more content…
SGI owned some real estate, core patents, and especially a 5,000-strong global customer list, which are important assets to help SGI to establish foreign operations. After the merger, SGI could make superior cluster computing systems and be able to solve large-scale data problems through a combination of hardware, storage, and software solutions. SGI’s ability to leverage its global competence had increased, and started to sell products and take orders from European companies. Hold all these in hand, that SGI got some competitive advantage in the market. For the future, SGI still have a long way to go if it wants to be surviving in this market. First, We recommend that SGI should maintain its competitive advantage by continue its traditional way to focus on meeting customer needs, try to provide unique solutions for the toughest technology and business problems, and try to be the first to market with new component technology. Secondly, SGI should try to create more products and services by using its unique and valuable skills like server design and cooling technology in order to gain more customers and competitive advantages. Finally, try to make some cooperation with its competitors. There are no everlasting friends or everlasting enemies in the world. There are only friends with the same interest.
Internal | Strengths * Innovator. * Once was the industry leader in graphical, supercomputing solutions. *
potential and made history with more than 57 patents at the end of his lifetime.
In addition to your company’s exterior success in developing cutting edge technology in biochemical engineering, and in materials engineering; Your company has developed an inexpensive and efficient way to create high quality computers, with low costs.
For years, AMD held the place of a distant follower of the large microprocessor market leader, Intel. Up to there, the competitor Intel led the market (with a “push” strategy) by creating consumer needs thanks to technological innovations. Those were linked with strong marketing campaign in order to facilitate a quicker adoption process of their new product line. However, in 2003, AMD change its traditional strategy to use a widely different one by switching into a blue ocean strategy. Indeed, AMD has changed course to become a “starter” firm. AMD has decided to launch at first its own brand server microprocessor range, called “Opteron” before one of Intel. At this moment, the firm made the decision to initiate the moves of server segment and therefore take heavier risks in term of investments, sales, pushing partners
Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as
His supporters, on the other hand, celebrated his uncanny business acumen, his flexibility, and his boundless appetite for finding new ways to make computers and electronics more useful through software.”
High level of commitment from the dominant coalition which trickled down the whole organization structure.
IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.
He co-founded Handspring in 1998, and created the Visor, “whose thrift and expandability forced other makers to be more competitive. Visor, is among the fastest–selling computer hardware products ever” (Willis, 2001).
When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case
modern genius for having built two of the world’s most valuable companies, Apple and Pixar,
Intel excels at top-down innovation, where highly differentiated components and electronics command a high gross margin relative to competitors, enabling faster design wins with Original Equipment Manufacturers (OEMs) and development partners. This top-down innovation flow within Intel is so dominant, that the product design teams are significantly more productive than even the most advanced business process management teams (Segerstrom, 2007). Microprocessors and the follow-on Internet, networking, security and integrated motherboard products are all predicated on this top-down innovation cycle that leads to product line proliferation in Intel (Zimmerman, 2010). DRAMS were undifferentiated in structure, lacked industry standards that could create differentiated performance or compatibility based on adherence or alignment to standards or customer requirements (Nicholson, 1997). Intel chose to compete on the only other area of their core strength as a company, which is quality management and yield levels (Clark, Walz, Turner, Miszuk, 1993). Getting the yields for DRAMS to 60%, which for a brief period of time lead the global industry, only served to accelerate a very high level of commoditization in the industry (Voss, 1998).
With the recent passing of Steve Jobs, there has been an intense spotlight focused on both the man and the company he built. Most of the attention has rightfully been focused on Jobs’ passion and creativity, as well as the remarkable period of innovation he preside. As a symbolic leader, the man not only once saving the company from bankruptcy but also building up a well-known brand that had integrate with our daily life – Apple.
As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten
In the component market, integrated circuit technology is threat of new entrants. The growth of integrated circuit technology makes existing component market shrink. EPD has taken aggressive moves to protect its market share from competitors and new entrants. Therefore, in existing market, EPD needs a cost reduction effort more and change their business model into low-margin high-volume business. It means that they should change their evaluation system; the plant should maintain 40% of gross margin. Additionally, they need to introduce new products into market to acquire new source of revenue. EPD has not built the clear strategies and shared them with employees.
Acer's dominance as a global manufacturer of IT hardware products can be attributed to the company's extensive electronics component expertise, depth of experience managing global electronics component supply chains, and well-planned acquisitions. Through a series of successful acquisitions, the company has four successful brands including Acer, eMachines, Gateway and Packard-Bell (DiDominico, Kartika, Sibeck, 1996). Of these three strategic areas that Acer excels in, their logistics and supply chain expertise across each of the geographies they compete in continue to deliver the greatest time-to-market and cost gains (Honi, Taring, Po-Young, 2000). Acer is organized into two segments, the device business group and consolidated products and services or other business group. This second group continues to be instrumental in the success of the "divide and conquer" strategies that Acer is successfully using relative to Lenovo. It is also a critical success factors in their success with global markets and local market competitive strategy. The combination of their depth of expertise with electronic components and supply chain prowess in the high technology industry also give the company a formidable competitive advantage against Dell and the troubled PC marker Hewlett-Packard (Honi, Taring, Po-Young, 2000). Despite all these strengths however, Acer continues to struggle with the areas of consumer branding and consumer awareness