Jump to ContentJump to Main Navigation
The Market MakersHow Retailers are Reshaping the Global Economy$
Users without a subscription are not able to see the full content.

Gary G. Hamilton, Benjamin Senauer, and Misha Petrovic

Print publication date: 2011

Print ISBN-13: 9780199590179

Published to Oxford Scholarship Online: May 2011

DOI: 10.1093/acprof:oso/9780199590179.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 15 December 2018

Market Making in the Personal Computer Industry

Market Making in the Personal Computer Industry

Chapter:
(p.291) Chapter 11 Market Making in the Personal Computer Industry
Source:
The Market Makers
Author(s):

Jason Dedrick

Kenneth L. Kraemer

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199590179.003.0012

In this chapter, Jason Dedrick and Kenneth L. Kraemer analyze a transformation in the personal computer (PC) industry. In the traditional structure of the PC industry, PCs were marketed through a variety of channels from direct sales forces, to corporate resellers and electronic superstores. The connection between the PC manufacturer and the final consumer was weak (via advertising) or non-existent. In the mid-1990s, a major shift began in the US market toward direct sales of PCs, led by Dell Computer, which allowed PC makers better to match demand and supply. Dell Computers pioneered a new type of PC maker, which was basically as an assembler of parts made by contract manufacturers and assembled according to the consumers’ specifications. This approach cut out the distributor and retailer, putting the PC maker/brand-name merchandiser in the role of market maker. Direct sales accounted for over half of all PC sales by 2005, dominating the corporate market and augmented by the consumer acceptance of e-commerce. The direct sales model has made smaller inroads outside the USA. Currently, there are three major retail models in the US PC consumer market. The first is the traditional indirect model and the second is the PC maker as retailer. The third, which might be called the retailer as PC maker, includes the private label brands sold by some retailers, such as Wal-Mart and CompUSA, and local “white-box” makers that sell primarily to small businesses. In terms of impacts on suppliers, PC makers have adopted just-in-time practices and moved to vendor-owned inventory to reduce costs. As PC firms have focused on retailing and marketing, they have outsourced even new product development to a contingent of original design manufactures, mostly in Asia.

Keywords:   personal computers, evolution of PC industry, pc market makers, dell Computers, pc suppliers

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .