Essay on The Impact of New Companies Entering the Market
Eleni Foreso, Pat Norton, Fabian Rangel and Heidi Hamlin
University of Phoenix
April 29, 2008
Market Trends Impact This paper will analyze the impact of market trends on the computer industry and the organization Dell, Inc. The market trends will be identified within the following areas; market structure, prices, technology, production, cost structure, competitors, regulatory, supply and demand. The paper will also discuss the impact of new companies entering the market.
Market Structure and Pricing This part of the paper will cover market structure, the impact of new companies entering the market, prices, and how each of the following will or will not change, and …show more content…
Production Trends Dell is already dealing with the impact of production trends. Production is becoming more global and outsourcing is the most important trend to this globalization. Low cost production has sparked this trend. Dell already has moved some customer service units to India. The company has also closed the manufacturing facility in Texas. This move was to reduce costs and increase efficiency (Unknown, 2008). Michael Dell believes that although jobs are lost in closing the facility the reaction to the decision will drive production.
Cost Trend Analysis Dell has to realize with current trends of increasing prices, so will theirs. Medical insurance rates across the United States are rising. So