Laptop or we can say notebook, It is a Enhanced type of a computer system. It is based Mobile computer technology; Laptops are usually light in weight. The weight may vary according to the material and machines used in the Laptops.
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Laptops run as mobile system. Means we can charge notebook it contains battery system, from the view of working and processing, notebooks (laptops) work as same as desktop computers, but they are less powerful at the same price of desktop, Laptops are expensive than desktops. Because desktops use materials which are bigger in size and consumes more power, so laptops use smaller and optimized components and power consumption is also less than desktops. Laptops have LCD (Liquid Crystal Display) and most of laptops use memory modules of different types for the place of Random Access Memory.
Laptop has a inbuilt keyboard and device like mouse which is known as Touchpad which is used for moving cursor on the screen.
Which was the first laptop company?? Answer of this question is still confusing because no one can answer the correct name. But now a day many laptops companies in Laptops markets. Following are the name of some popular laptop companies:-
From the All above laptop companies Dell is known as top laptop company in U.K Laptop market. It is the highest laptop market shares and high share value.(evidenced )
Dell provides wide range of Apple is known for its Mac books and run only its Operating system. It is virus free and energy saver.
The project titled “NEW technology and the strategy of the U.K laptop market by comparing of the Dell and Compaq (Hewlett Packard)” will help in understanding the UK’s Laptop market and will analyse that which elements of both laptop companies’ marketing mix make contribution to the success of their products in market and help in Identifying that what type of strategy will be used to maintain and grow their share in the laptop market. Since this project will explore many things about the technology and ideas of laptop companies’ planning in growing sales. But mainly it will explore that how the appropriateness of strategies achieves their goals and will identify the successful and unsuccessful approaches in the marketing sales, and also will give idea about the customers mentality while purchasing the laptops, and this research will also give the idea about Laptop vendors and End-users, and by comparative study, this research will describe that how customers reacts to the changes in market?, and how the laptop technology has been changed in last few years?
Earlier when I took this topic, I didn’t know too much, but now when I completed, I am feeling comfortable because I chose very interesting topic. It gave me the idea about the thoughts of customers while they purchase laptop.
2. History of Laptop companies
This project report will reveal information about two famous laptop companies, which are Dell and HP (Compaq). This section will provide information about history background of both laptop companies. Since these both companies have good market values and more latest technologies.
Dell Laptop Company is not much older than other popular laptop companies, but it became popular and earned more market value in few years. Dell Company was formed by a person named Michael Dell. It is USA’s computer hardware company and the headquarter of this company is in Texas. Currently this company manufactures, supports, and sells Desktop companies, data storage devices, PDAs, servers, laptops, network switches and Mobile phones and many more products related to technology.
In 1996 Dell started selling computers via its website. In 1999 Dell overtook HP and became the Biggest Seller of Desktop computers. But it was known as PC’s limited. So in 2003, in the yearly meeting of the company, all the stockholders approved the company’s new name to ‘Dell Inc’
In 2006, Dell was ranked as 25th largest company in the Fortune 500 list by Fortune magazine. Dell consistently improving its performance in market for last 15 years and providing better service than others. Firstly it was named PC’s limited and its starting capital was 1000 American Dollar. Firstly it started selling IBM supported computers made from stock components. Then after one year, Dell invented its first computer which was called “Turbo PC”. Michael Dell believed that if we sell our product directly to the customers then our company could understand customers’ need bitterly so we can provide better and more effective solution of computers to meet customers’ need
2.1.1 History of Dell Laptops:-
First series of Dell Laptop was released in 1989 and it was named 316LT. it had black and white screen and in 1991 , Dell introduced its first color screen laptops and its cost was nearly $4500- $5000. Since then, Dell is continuously improving its laptop performance and reliability as per customers’ demands and making it customer affordable. In 2006 Dell also started manufacturing AMD processor based laptops and computers. And in this company also purchased Alienware and released a series of laptops with the join name Dell Alienware. The Dell-XPS also, Dell released its many series of laptops. The other popular laptops series of Dell are:-
- Dell- Vostro
2.1 Compaq/HP(Hewlett-Packard )
The Compaq/ HP is the one of the best Desktop and Laptop computer company, it is American company this company came in market in 1982 and later it was merged with HP and now became a brand name. Jim Harris, Bill Murto and Rod Canion formed this company and from starting, Compaq is producing IBM PC supported computers.
2.1.1 about HP
Whenever we hear about Compaq, HP also comes in our mind and we think that these both are the same. But the reality is different, actually Bill Hewlett and Dave Packard was the students who formed HP. They were the students of Stanford University. In 2002 they merged with Compaq. Firstly they developed sound oscillators, and then they came in computer market. These days, HP is a common name in laptop and Desktop computer market. And the surveys show that HP tablet PC as well as Laptops are winning the trust and heart of the UK customers.
2.1.2 History of (Hp/Compaq) laptops
The first laptop of Compaq Company was launched in 1983, it was a portable computer based on IBM PCs. All the software which was supported by IBM PC was also supported by Compaq’s portable computers. In 1985, Compaq earned a turnover of half a billion dollars In 1986, Compaq launched its 16 bit computer which was based on Intel processors and had the frequency of 8 MHz and it pushed IBM back on the basis of performance and it became fast computer at that time.
Till few years ago, Compaq was manufacturing products only related to the corporate world. But as the time passed, it came in retailer market and made a boom in computer and laptop market. In 2002, HP made an agreement and merged with Compaq for introducing themselves as the single-biggest entity in the computer industry. After this merge, HP pushed back Lenovo/IBM computer, Dell and other top companies. Compaq also invented Tablet PC notepad which has a pointing device just like pen, After the merging of HP and Compaq, some of the products got new name for example, Compaq’s iPAQ PDAs were renamed by HP iPAQ , and logo of company became HPQ earlier which was CPQ of Compaq and HWP for HP.
HP/Compaq laptops divided its laptops in some categories and manufactures and fixes cost according to their category. Like Versatile performance, mobility, Entertainment powerhouse, Special editions. HP is known as its Pavilion Series and other side Compaq was known as its Presario series of desktop and laptops. These all are categories has the customization option according to the user’s need and customers can customize them and get the best product according to their choice.
The Technical changes in UK laptop market
Changes in laptop technology in last 20 years.
Change is the nature of world, every things changes with time, and after every change, it become better and more effective, just like the Laptops technologies are changing continuously as per the changes in time. As we all know that every technology no longer remains same, the change will be happen when people will want to move to the next and latest technologies with some better improvements then others. Continuously access to the new information and knowledge is provided by currently available technology and new growing technologies.
Technology is changing for example, in first expensive and bulky PCs were developed, after that desktop computers came in market and then portable computers came in use, but throughout last 20 years, the laptop technology has been changed very rapidly, the changes in the laptop companies can be divided into four categories. These categories are as follows :
- Cost of the Laptops
- Storage capacity
- Processing speed
- Size and designs
3.1 Cost of the Laptops:
In earlier time the cost of a laptop was nearly $2500, which was very expensive and an ordinary person can’t afford this price of laptop but with the changes in time, laptops becoming cost effective and in current time, a student can also afford money for laptops and can do his usual school or college work via laptop.
3.2 Storage capacity:
The storage capacity is also a point to be remembered while purchasing a laptop, because when a work is done on the laptop, then it require work to be saved somewhere on the laptop, and it requires storage place, in earlier time when the first portable computer was made , the it had only 32 MB Hard disk, but slowly-slowly storage capacity increased and 64 MB, 512 MB, 4 GB, 16 GB, 80 GB, 320 GB, 500 GB hard disk came in laptops and currently laptop with 500 GB Hard disk is much popular and widely used.
3.3 Processing Speed:
When the first portable was launched, then it had a processor of only 8 MHz and at that time, IBM had processor with only 6 MHz, but with the time processor are also changed and speed and processing is increased, Intel Pentium III, Pentium IV, Dual core, Core 2 Duo, Core i3, Core i5, core i7 these all processor are introduced within last 20 years. Currently i7 is latest processor with the speed of 2.9 GHz.
3.4 Size and Design :
With all above features of laptop, laptop is also improved at the view of size and Design, first portable computer was just like as typing machine and had only a little screen, but with the time, laptop improved and now become more attractive in design and more light in weight and small in size, and currently mini laptops are also used, which are called “Net books”
Current laptops technologies in Dell
In Today’s time, many magazines appreciated the Dell’s laptop series and notbooks in U.K., in world, the first portable computer was made in 1981, and after few years, Dell launched its first laptop.
In 1984, Dell started manufacturing his own laptop, and after 5 years in 1989, Dell launched its first laptop. It was named the 316LT. this notebook had a black & white display
In 1991, Dell launched its first laptop with a color screen and it was released at the Spring Comdex computer tradeshow in Las Vegas. And the price for this laptop was $4,500
Dell launched its notebook first time with the lithium ion battery in this year. And this year, Dell broke every industry record for long battery life, and made the battery longer so with charging once, laptop can work easily for long time.
In this Dell introduced Wi-Fi inbuilt in Laptops. And again Dell made a Boom in Laptop industry, Wi-Fi is a the name for products who allow access to a wireless local area network or wireless Internet connection.
Dell added Blu-ray Disc technology to the laptop of its series, Dell latitude D series was announced. In this series. D-420, D-520, D-620, D-820 were came in market, Dell started selling its Inspiron Series globally
2006 to till Now
In July 10, 2007, Dell launched its Vostro series , this was sold under the Home and small business lines, When Dell introduced vostro series, it retired its Dimension line. with vostro, Dell provided short er technical support time, if a customer want to get 24/7 technical support, then he has a option to purchase full support. Dell customers also got Express card expansion slot in vostro.
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After that, Dell introduced its best laptops models and series in market, Dell Studio, Dell Lattitude, Dell XPS, these latest models and technologies came with fastest processor options, HDMI ports, LED blacklit screens. eSATA ports, backlit Keyboard, variation in screen size of laptops, maximum products are available on Dell website for sale, many customizable colors, designs and features are available, dell also included a Face recognition and a finger print scanner system in some countries in the end 2009, Dell released Studio laptops with the a mobile Core i7 processor, but Dual core and core 2 duo options were also available, but they were categorized as lower level options, in 2010 Dell also introduced net books with extra improved features.
How do Dell and Compaq sustain their position in market?
Every company in the market have a position and always want to sustain its position in the market. For this, Every company uses some strategies and some process for making their sales better and remain top on the market. Dell and HPQ(Compaq) also follows some strategies and some process for growing their sales.
Dell works on following strategies to sustain its position in market –
Partnership with Suppliers
Research & Development
Direct Sales :
Direct sales means direct to customer. This is the best and most successful strategy of the Dell, this was followed for providing best product on effective cost. It was also called “Eliminate the Middleman” Strategy, Everyone knows that if a product is Sold directly to the end user, then it will reduce the cost of the product. Just like that Dell also sells its products direct to its customers. So that middleman will be eliminated and customer will get good quality product on company cost. Dell removed all the middleman retailers and started selling laptop directly to customers via Websites and other sources.
Partnership with Suppliers :
Dell planned to make combination with other suppliers, who sell Dell laptops. The Dell made partnership agreement with suppliers for the profit of both parties. Dell convinced them to Sell Dell laptops more and more with extreme priority. For that, Dell will provide them Dell laptops on low cost for Selling with Good Margin. When a supplier will get good margin on a laptop, then obviously he will focus on selling that particular product more and more. Dell’s this Strategy worked very effectively and got better results.
Research and Development:
The Dell always believed in selling laptops directly. Its “Direct to Customer” Strategy helped in getting much improvement and new Ideas of Development in technology. One of the reasons of Dell for being popular is the continuous and better development in Laptop Technology and product quality. Dell is consistently improving products and quality. The most important thing is that Dell always comes with a Product better than last one. So from last few years, Dell is winning heart of the customers specially students and professional persons. Dell’s research & development department is very progressive and this strategy help a lot for being popular in Laptop industry.
Dell’s customer services are Excellent and impressive. Dell provides 24×7 customer support. This Strategy helps Dell in making trust on customer about Service after sales. Because selling a product is not much harder but after selling, maintenance and providing support is very hard and important. Dell provides many types of customer services for improving company value. Dell provides technical support, Replacement of Defected product, online technical support, information about problems related to laptop. In early years Dell was moving backward because of its customer services. So after that company’s chairman Michael Dell ordered to improve customers services and it helped in receiving Feedback from customers and it was a big help for Dell in improving product quality.
HP(Compaq) works on following strategies to sustain its position in market –
Telling Stories approach
Using Digital Media
Opening doors a little
Store to store strategy
Telling Stories approach:
Telling stories approach means transferring and giving message in a narrative or detailed way. This strategy generally follows the rule that “Tell a story, what a customer want to hear” means on what thing a customer believe, or what product and technology a customer want to buy, HPQ’s this approach help in making good relation with customers and made believe and develop relationship between customer and the Brand. This is most old and effective approach to make a laptop or company’s brand efficient, effective and in touch.
Using Digital Media:
Using Digital Media approach has four different parts. Which are shown below:-
First part is Partnering with MySpace, MySpace is a social networking site and HP made a partnership with this site to make a trust in customers about the brand and this strategy became successful in many aspects. The second part in this approach is contests on youtube.com for creating videos and by this HPQ got good results. Many people took part in this contest and got prizes and came to know about the products of HP(Compaq). The third part is HP idea labs. In this HP made and strategy which helped in getting better ideas from customers about the improvement in brands and getting good results.
Opening doors a Little :
A laptop company uses its Developer team’s mind and its thinking in developing laptops. The employees who work in the company always thinks and try to develop something better than current. But what will happen if a company gets ideas from the customers and use it for improving its product quality. HP started this approach for getting new ideas from the customers and it helped in using customer’s talent in designing new products and technologies. For example recently HP started a competition on MTV to Design new notebooks and give these designs to HP and get money and many more prizes. After starting of this show, many customers participated in the contest and did their best in designing notebook with new technology. By this competition, HP got many new ideas for manufacturing and improving its laptops.
Store to store strategy :
Store to store strategy is an approach for improving sales of laptops. Basically it is a mini island type store within a large retail outlet. This island store is independent, exclusive to its own products and laptops, atmosphere and associates. The main aim of this strategy is to provide customers with an experience and that experience will exceed the expectations of the customers.
Since every company follow different type of strategies to sustain its position in the laptop market . Dell has its strategies related to customers needs and HP has company need related strategies. Dell considers that the laptop market in other area of world is same as US and UK. But HP thinks that every region in the world carries variability in laptop market. So it changes its target according to the location and region. HP follows the principle of Polycentrism. Whereas Dell follows the principle of ethnocentrism.
How the customer responds to the changes in market?
Whenever there happens a change in market, customer quickly responds to the market, it may be Positive respond or may be negative respond and the companies also get affected by these changes, because whenever a change happens, a customer thinks that there should be new thing or new technology in the market. And according to that change, customers responds to the market.
Due to changes in Market –
- Customer Require more efficient technology with effective cost.
- Customer will require product delivery in short time,
- Customer will move toward new technology, so that old product technology will be ignored.
- New offers and schemes will be available in market.
- Competition will be more and more.
When there will be a change in market and new technology will be introduced, then customer will think that he should get best laptop on reasonable price. Then it will be more difficult for a laptop company to manage good quality product on low cost.
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