In 2015, 3 million PCs (desktops and laptops) were sold in the US. Of these, aro
ID: 408501 • Letter: I
Question
In 2015, 3 million PCs (desktops and laptops) were sold in the US. Of these, around 30% were sold to the Enterprise segment, 30% to Small and Medium Businesses (SMBs), and the rest to consumers. Enterprise users paid the highest prices, about $700 per unit on average, while SMBs paid $500 and consumers paid $350 on average.
In the same year, 300,000 laptops were sold: 150,000 to Enterprise users, 100,000 to SMBs and 50,000 to consumers. The main competitors in this space were Dell, which sold 100,000 laptops, and HP, which sold 50,000. The remaining 150,000 units sold were made by other manufacturers.
70% of those who purchased Dell laptops were Enterprise users, 20% were SMBs, and the rest were consumers. For HP and other manufacturers, 40% of laptop purchasers were Enterprise users, 40% were SMB users, and the rest were consumers.
Answer the following:
Assuming every desktop PC user is a potential laptop user, what is the size of the potential market (in $) for laptops?
What percent of the potential market (in $) consists of Enterprise, SMB and Consumer users respectively?
What is the market penetration of laptops for each of the three segments?
What percent of laptop sales (in units and $) are accounted for by each segment?
What is Dell’s market share (of units and $) of laptops in each segment?
Rank the segments in order of attractiveness to Dell for future growth, based on the above answers and using the information provided. Explain your answer.
Explanation / Answer
1. Potential Market is (750X700+800X500+1150X350) X1000 =1327.5 Million
2. ES, SM and rest will have 525:400:402.5 proportion by value in this market which is 39.5%, 30.1% 30.3% respectively.
3. In ES 150/900= 16.6%, in SMB it is 100/900=11.1% and in Rest of the consumers it is 50/1200=4.2%
4. Laptop sales in units is distributed in 3:2:1 which 50%,33% and 17% respectively.
Laptop sales in revenue is distributed in ratio of 105:50:17.5 which is 61%,29% and 10% respectively
PCs Laptop Desktop Price ES 900 150 750 700 SMB 900 100 800 500 Rest 1200 50 1150 350Related Questions
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