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CHAPTER- I
i) INTRODUCTION
The project entitled “A Study on Personal Computer Marketing
in Palakkad“is a Marketing study based project based on the Indian
industry and the company SAFE Software and Integrated Solution
Pvt Ltd, Plakkad.
The computer industry rarely stands still, and the ability to respond to a
changing environment is fundamental to survival. While change is
normally incremental, more dramatic transformations have taken place on
occasion as well, driven by new technologies such as the microprocessor,
the personal computer and the Internet, by corporate strategies such as
IBM’s decision to rely on outside suppliers for key components in its
original PC, or by the success of new business models, such as Dell’s
direct sales/build-to-order approach. The emergence of the PC and IBM’s
strategy for entering the market led to a transformation of the industry
structure from vertical integration to horizontal specialization, and to the
creation of a global production network for computer hardware. Dell’s
success is now transforming the industry from supply-driven to demand-
driven production, literally reversing the polarity of the supply chain.
Major changes in firm and industry structure have been driven mainly by
competitive pressures in the industry and strategic responses to those
pressures. However, information technology has played a vital role in
enabling many of these changes. Motivated in part by the desire to
demonstrate the capabilities of their own products, computer companies
have long been leaders in using IT to improve their own processes and to
1
coordinate activities within the firm. In addition, they have developed IT
networks linking suppliers, customers and business partners to improve
efficiency throughout the value chain. The Internet has been especially
important in supporting the shift to demand-driven production by making
it easier to coordinate information-intensive processes across a global
production network.
SCOPE OF THE PROJECT
a. The main aim of the project is a detailed study on the
companies’ strategy on Personal Computer Sales and the type of
services offering for customers.
b. The project analyzes the present scenario in Indian PC market.
c. The project includes the companies’ information of the
companies Computer Sales and service
d. Can go through the Indian Market share in PC assembling
Development Industry.
e. History of PC Assembling in India.
f. The company can implement new marketing ideas and
techniques.
g. Customer feed back on services and products.
ABOUT HARDWARE INDUSTRY
The first adding machine, a precursor of the digital computer was devised
in 1642 by the Blaise Pascal. In 1670s Gottfried Wilhelm improved on
this machine by devising one that could also multiply instead of just
adding and subtracting. During 1880s the American statistician Herman
Hollerith conceived the idea of using perforated cards for processing data.
2
Employing a system that passed punched cards over electrical contacts,
he was able to compile statistical information for the 1890 U.S. census.
In the 19th century, the British mathematician and inventor Charles
Babbage (the pioneer of digital computer - refer to Babbage’s Folly)
worked out the principles of the modern digital computer. The Analytical
Engine was designed to handle complicated mathematical problems.
3
ii) OBJECTIVES
PRIMARY OBJECTIVES
• To study the progress of the company in marketing and its
implementation.
• To Study the Hardware Market
• To identify the factors that affects the Market system of Safe.
• To know the Customer’s opinion about the ongoing service
support provided by the company.
• To study the type of services offered
SECONDARY OBJECTIVES
• To study products and services offered by the firm.
• To understand organizational structure of safe
4
iii) METHODOLOGY
The project is based on descriptive research design.
The project includes data’s from different sources from the
company, from the customers and from Internet.
For the project, data collected through two sources
• Primary data
• Secondary data
PRIMARY DATA
The primary data are those, which are collected for the first time and
thus happen to be original in character. The data’s includes
information collected through interview with President, Secretary,
managers, Hardware Engineers, consultant and staffs of the existing
customers and other PC users. Internet also guide to collect the
data’s about the information of the current trend in PC market and its
history.
SECONDARY DATA
The secondary data are those, which have already been collected by
someone else, which have been passed through statistical process.
Industry profile, company profile and product profile are some of the
secondary data, which have been used for the project.
The Data were analyzed through the application of various statistical
tools like chart, simple percentage etc.
5
LIMITATION OF THE STUDY
• Covering the total customers is practically difficult one so that
limited to certain numbers according to the type of customers.
• The study has restricted only to kerala. Hence the result of
the study cannot be generalized for the entire state.
• Time constraints were an important factor, which limited the
detailed study.
• Unavailability of important staffs also made difficult in
collecting valuable information
• As some information is very important for the company to
disclose, that information is not added in this project.
6
CHAPTER -II
COMPANY PROFILE
i) BRIEF INTRODUCTION OF THE COMPANY
SAFE SOFTWARE AND INTEGRATED SOLUTION Pvt. Ltd,
Palakkad, has been in the Co-operative Banking Computerization field
for the past 16 years. Now they are one of the leading Private Limited
companies providing Total Solution (Banking Software, system software,
computer hardware, networking, training & Consultancy) for
computerization in Co-operative Banking Sector in Kerala. Their
expertise in Software, Hardware & Networking Maintenance reach many
satisfied customer Banks in Palakkad, Eranakulam, Thiruvananthapuram,
Kasargode,Trichur, Kannur and Andaman Nicobar Island. Most of their
customer- Banks are looking for single point maintenance for their
Software, Hardware and Networking related problems. They confidently
took up this responsibility and satisfactorily provided Total Computer
Solution to all their Customers. They have full-fledged and well-equipped
computer software, hardware and network training and maintenance
facility in Palakkad town. More than 75 employees are working in this
organization. Safe’s training and maintenance centre has a group of
highly qualified and experienced personnel.
ISO CERTIFICATION
Safe is an ISO 9001:2000 company strictly following the quality
management standard product and service supports to their customers.
7
ORGANISATIONAL HIERARCHY – HARDWARE SECTION
8
MD
Chief Technical Officer
Regional
Manager
Customer
Relation
Manager
Marketing
Manager
Hardware
Consultant
Service
Engineers
Marketing
Executives
Hardware
Engineer
Network
Adinistrat
or
Supervisor
Service
Engineers
ii) HISTORY OF THE ORGANIZATION
SAFE an Overview
The Company being a Specialized and Complete Banking Solution
Provider has as Heads, Skilled Professionals having Experience of more
than 30 years in Banking and Auditing and more than 16 years of
Experience in Co-operative Banking Computerization and cater all the IT
requirements of Banks.
• Established in 1993 in Palakkad.
• Started as a Cooperative Banking Software Development
Company.
• Support Centers at Kochi, Thrissur, Kannur, Kahnjangad and
Kasargod.
• Full-fledged Software Development & High-end
HW/SW Maintenance Centers.
• High-end Software, Hardware and Networking Training Centers in
Palakkad.
• Leading Total Solution Providers in Co-operative Banking Sector
in Kerala.
• More Than Thirteen Years of Experience in Cooperative Banking
computerization.
• Fastest Growing Total Solution provider.
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• Highly Professional and Dedicated Personnel.
• Operating in Kerala and Outside.
Total Solution Providers
They have been in the Co-operative Banking Computerization field for
the past 15 years. Now they are one of the leading Private Limited
companies providing Total Solution (Banking Software, system software,
computer hardware, networking & Consultancy) for computerization in
Co-operative Banking Sector in Kerala. Their expertise in Software,
Hardware & Networking Maintenance reach more than 200 satisfied
customer Banks in Palakkad, Trichur, Thiruvanandapuram, kasargode,
Eranakulam and Kannur. Most of their customer- Banks are looking for a
single point maintenance for their Software, Hardware and Networking
related problems. Safe confidently under took this responsibility and
satisfactorily provided Total Computer Solution to all their Customers.
They have full-fledged and well-equipped computer software, hardware
and network training and maintenance facility in Palakkad town. Their
training and maintenance centre has a group of highly qualified and
experienced personnel. Also, Safe makes available to their clientele all
standard computer hardware, peripherals and stationary items at very
competitive rates.
10
Banking Software
M/s Safe Software & Integrated Solutions Pvt. Ltd., Palakkad, have
exhaustive experience in computerization of District Co-Operative Bank),
Co-operative Urban Bank) and Primary Co-Operative Banks (Kannur,
Palakkad, Trichur & Ernakulam) in Kerala. Safe have more than hundred
successful installations to their credit in Kerala State. Safe have very
reliable and time-tested switching solutions for high-end retail banking.
These switching solutions are widely accepted by number of large banks
and software companies. Safe have detailed the features and
implementation plan of the software in the enclosed manual. Their
Banking Software is being made use of by a number of Co-operative
Banks in Palakkad, Trissur, Kannur and Ernakulam districts.
High-end Banking Delivery Channels
Safe implement switching solutions for high-end retail banking. This
technology is widely accepted by number of large banks and software
companies. Safe confidently propose this relatively inexpensive and
highly reliable solution to District Cooperative banks and to Urban banks
for various Retail Banking Delivery Channels like- Any Branch Banking,
ATM, Web Banking and Tele Banking
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Disaster Recovery
Latest requirement in the banking sector is for a reliable and legal
DISASTER RECOVERY plan. Safe have various confirmed and time-
tested Disaster Recovery and Backup Solutions for banking sector, which
Safe provide to the end-user through authorized DIGITAL SIGNATURE
Service Providers. Safe also provide complete Data Transfer solutions for
inter-branch consolidation and other activities.
Hardware Support Center
Safe have the pleasure to introduce their newly organized Hardware
Maintenance team. A well-experienced communications engineer who
has number of years of maintenance experience in the fields of
Communications and Computer to his credit heads the team. The team
also consists of an experienced Microsoft Certified Systems Engineers.
Their maintenance engineers are innovative in their attitude and are
guided by the latest available maintenance management techniques to
achieve a high level of QOS. Safe have already undertaken Hardware &
Network Annual Maintenance Contract in many Co-operative banks in
Palakkad Dist. and have provided an impressive level of service and
reliability to the satisfaction of all Their customer banks.
12
COMPANIES SOFTWARE PRODUCTS
PRODUCT ANALYSIS
PRODUCTS
1. SIBS
The group has developed a Complete Banking Software Package-
SIBS (SAFE INTEGRATE BANKING SOFTWARE) using State-of-
the Art Client/Server Technology. The Product has over 20 Core
Modules and Other Add on Modules covering all the Essential
Operations of a Branch and Head Office including:-
1.1 BRANCH AUTOMATION
It cover Share Capital & Dividend , Deposit (SB,CA, Fixed ), Loans
and Advances, Gold /Jewell Loan , Investment & Borrowings ,
Suspense Accounting , Bills Collection ,Clearing Remittance , Cash
Credit, Over Draft, Locker, Kurries /Chitties, Cash Management,
Miscellaneous, Inventory /Consumer (Sales,Purchase,Stock),
Miscellaneous, Loan Recovery & Monitoring System
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1.2 HEAD OFFICE AUTOMATION
It covers HO & Consolidation, PayRoll, Investment &
Borrowing inter Branch, Basic Statistical Returns , Balance Sheet
Analysis , Branch Performance and Bank Reconciliation.
1.3 ADD ON MODULES
Performance Monitoring & Resource Management, ALM, Asset
Tracking, Contact Management, Budgeting, Extension Counter , ATM
Interface, Internet Banking, Wap Banking , Tele Banking Interface ,
Basic Statistical Returns , Balance Sheet Analysis , Branch Performance.,
Dispatching. Customer Terminal , Audit Terminal
SIBS FEATURES
• Bank’s Overall Development
• Customer Satisfaction.
• Complete M.I.S for Analyzing, Decision Making &
Administrative Purpose.
• Up gradation & Implementations of Latest Technologies to
increase the overall effectiveness of the system.
• Cost Saving through Over All Progress, Minimum
Maintenance and Increased Productivity
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• The Need for a Complete Banking Software Under 3 Tier
Client/Server Architecture that would take the Bank into 21st
Century with Confidence and
• With out becoming obsolete or inflexible.
SIBS ADVANTAGES
• User Friendly
• More than 600 Reports (Accounting , MIS & Graphical)
• Screen Layout Resembles the Normal Banking Transaction
• Simple Day Begin & Day End Procedure
• Elimination of Redundant effort
• Improved Management control
• Enhanced Customer services
• Facility to monitor individual customers and accounts
• Monitoring Systems for Different Sections
• Branch MIS for Performance Analysis
• Capacity to generate Adhoc Internal reports
• Automatic generation of MIS & Statutory reports
SIBS has a Graphical user interface and uses Multi-tasking
capability of Windows. Besides these it has security features,
automated signature verification, photograph storage and retrieval.
15
SIBS - Total Branch Automation (TBA ) Salient Features
• Maximum parameterization
• Modular structure
• Structured design
• Multiple levels of security
• Signature – photographs storage and retrieval
• Floppy based direct debit & credit to Avoid Manual Entry
• Batch processing of back office operations
• Object Oriented programming
• Branch MIS
• Data Transfer to HO (Through Modem, Internet, RAS, Floppy)
2. SIHAS
SIHAS- SAFE Integrated Hospital Automation Software, The
Complete Co-operative Hospital Software that combines the latest
technology with the Hospital expertise of professionals who have
been with the co-operative Hospital system for the past 5 years
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brought to you by SAFE, a company whose top priority is customer
Satisfaction.
SCHOLAR - Smart school Management System
“We recognize that education, knowledge, information and
communication are at the core of human progress, endeavour and well-
being“The success of this system lies in correct knowledge dissemination
process blended with smooth and efficient functioning of management
systemScholar –The Complete School Management system is specially
made for Educational Institutions for hassle free Management of the
Institution. It provides a fully automated system from admission of a
student and tracks it up to the TC. Everything in school from academic to
extra curricular and even health records of the students are constantly a
click away in this software
SAMS
Attendance Monitoring and Access control are the key factors to be
focused for the comfortable and efficient working of any establishment.
This is the area where Smart card/Biometric solutions play a significant
role. SAMS has the advantage of both these interfaces for achieving this
purpose. The Payroll section will use the data collected through the
attendance monitoring system to calculate the pay of each employee.
EASY SHOP
Easy Shop is an integrated solution for retail management with Location
wise inventory management, Purchase order generation, Reorder level
maintenance and variety of reports. Easy Shop also takes care of all Stock
maintenance on the store and accounts report based on the purchase, sales
and other expenses
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SMS Solutions
In today’s work environment, daily deadlines, appointments and meetings
are predictable. And often, one is hard pressed for time. In such a
situation SMS Solution comes as a great convenience. SMS service
allows you to do transactions on your mobile phone without making a
call, using the SMS facility. It keeps you informed about the significant
transactions in your account. All one needs to do this type, out a short
text message on the mobile and send it out to a pre-designated number.
The response is sent back as an SMS message. With our SMS system, the
mobile becomes a powerful input/output device through which all kinds
of transactions can be performed with assured security and data integrity.
IVRS Solutions
Interactive Voice Response System is a runtime application in the state-
of-art communication system that facilitates 24-hours-a-day, 365-days-a-
year communication between Service Provider and its customers.
Customers can make call over a telephone line, and the Service provider
can provide information over the same telephone line. With our IVR, the
simple telephone instrument becomes a powerful input/output device
through which all kinds of transactions can be performed with assured
security and data integrity.
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CHAPTER- III
ANALYSIS ABOUT HARDWARE MARKETING
About Personal Computers Sales Value Chain
The personal computer is a based on a modular architecture whose
components, peripherals, and software can be designed independently and
integrated into the final system using standard technical interfaces
(Ulrich, 1995). This product architecture, which became the dominant
design with the introduction of the IBM PC in 1981, led most PC makers
to rely on outside suppliers of most components and peripherals. The
result was a horizontally segmented industry structure in which most
firms compete in one or two segments only, making components,
subassemblies, systems or peripherals, developing software, or providing
sales, distribution, technical support and other services (Grove, 1996).
Today, all of the components needed to assemble a desktop PC are
19
available from a vast network of suppliers and a finished system can be
built with little more than rudimentary technical knowledge.
By the mid-1990s, the PC industry had matured into a fairly well-
established industry structure, based on specialization of functions across
the value chain (Figure 1). PCs were assembled by the major vendors
using standard assembly line production methods, with production
volumes set to meet demand forecasts. Components and sub-assemblies
were shipped by component manufacturers and contract manufacturers to
meet production schedules. Finished systems were sent to distributors,
who held inventory for sale to retailers and resellers, who also held
inventory for sale to the final customer. All of this entailed high levels of
inventory throughout the system, and many transfers and touches of the
product on the way to the customer. The biggest winner under this
industry structure was Compaq Computer, which supplanted IBM as the
number one PC vendor in the U.S. and worldwide in 1994 by combining
aggressive pricing with widespread distribution and a reputation for high
quality.
Figure 1. Indirect sales value chain
This apparently stable industry structure was disrupted by a series of
changes in the late 1990s. One factor was the rapid decline in PC prices,
which had long remained in the $2500 range. By the end of the
millennium, thanks to falling component costs, and a shift of
20
Final
Customer
Components
makers
Contract
manufacturers
PC makers Distributors Resellers/
retailers
R&D,
Manufacturing
Design, engineering,
Final assembly,
Marketing
Distribution Sales,
Configuration,
Installation, service
Manufacturing
manufacturing to low-cost locations, the average selling price of a PC had
been cut in half. While much of the price decline reflected lower
components costs, price wars among PC makers had driven gross margins
down as well. In addition, there was acceleration in the rate of product
cycles, driven by competition in the microprocessor market that led Intel
to speed up its introduction of new processor generations. This led to
faster depreciation of components and finished goods, putting a premium
on minimizing inventory throughout the value chain (Curry and Kenney,
1999).
Direct sales and demand-driven production
A more fundamental destabilizing force in the industry was the success of
the direct sales, build-to-order (BTO) strategy exemplified by SAFE .
Under this model, PC makers assemble systems as orders come in,
usually allowing customers to choose from a set of configurations, and
ship the product directly to the customer (Figure 2). Direct sales bypass
distributors and retailers, taking out their profit margin. Meanwhile,
business processes were fundamentally altered by the shift from supply-
driven (build-to-forecast) to demand-driven (build-to-order) production.
The direct sales/build-to-order model reduced inventory across the supply
chain, giving it a significant cost advantage. It also allowed PC makers to
achieve product differentiation through customization, in an industry
whose products were otherwise almost impossible to tell apart (Kraemer
et al., 2000; Dedrick and Kraemer, 2002).
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Figure 2
Direct sales value chain
The direct model, particularly as executed by Dell, achieved superior
performance in measures such as net profit margin, return on equity and
inventory turnover, and also enabled the PC vendor to develop a close
relationship with the final customer. Indirect sellers such as Compaq,
IBM and HP worked with channel partners to develop hybrid direct
delivery processes, leading to major improvements in efficiency across
the industry. For instance, the industry average for inventory turnover
rose from 12.9 turns per year in 1998 to 53.5 turns in 2001 (Kraemer et
al., 2000; Hoovers Online, 2002).
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Component
Makers
Contract
manufacturese PC maker
Final
customer
The final factor in the transformation of the industry was the widespread
adoption of the Internet by PC makers and their customers in the late
1990s. Dell and Gateway had been selling PCs directly to customers for
over a decade by 1995, when the Internet first became available for
commercial use, and had managed to capture a combined U.S. market
share of just 10%. By 2000, that share had tripled to over 30%. While the
Internet was not the only factor, it did play to the advantage of the direct
vendors, who found it easy to offer online sales using the same
infrastructure for product configuration and order fulfillment already in
place to support telephone or catalog sales. With no distributors or
resellers to contend with, there was no problem with channel conflict
when the direct vendors began to sell online. The Internet also allowed
computer makers to offer a variety of services such as customized
extranets to large customers, and online support to smaller ones.
The shift from indirect to direct selling and supply-driven to demand-
driven production has been accompanied by changes in the way that PCs
are produced and by whom. The result has been a subtle but significant
transformation of the overall industry structure and of individual firms’
supply chains.
Impacts of IT, the Internet and E-commerce on the PC
Industry
What impacts have internal IT and interfirm networks had on the PC
industry? I found that the Internet and other forms of e-commerce,
combined with internal IT applications, have enabled many of the recent
changes in the structure of the industry.
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• The capabilities of tightly integrated internal IT systems have
supported the shift from supply-driven to demand-driven production
by linking the entire order fulfillment process, from order-taking to
delivery. The internal IT systems of PC makers are able to handle
large amounts of complex data and transmit necessary information to
internal units and external partners to fulfill their functions. The
internal IT systems of CMs and distributors are important resources
that enable these firms to expand their capabilities and geographic
scope. As a result these firms can offer a wider range of value chain
activities, and PC makers can outsource an entire set of processes to
them.
• Use of the Internet enables greater speed and flexibility in the supply
chain, which is especially important in demand-driven processes. The
Internet provides a common infrastructure and set of standards to all
firms, without the need for investment in expensive proprietary
network infrastructure. As a result, at least some forms of information
can be exchanged quite easily, such as product and price information,
sales and production forecasts, inventory information, and technical
documentation. This information is sufficient to support a wide
range of transactions, given the standardization of most products and
some processes.
• The Internet and EDI support the industry’s modular production and
distribution network by standardizing information sharing, and allow
for greater flexibility in designing the value chain. Direct shipment
from a contract manufacturer to the customer is simpler and faster
than having the product change hands several times, but requires
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complex information flows to trigger and record physical actions and
financial transactions.
• The Internet is well-suited to direct sales, and has led to
disintermediation of the supply chain for an increasing share of PC
sales, which no longer go through distributors and resellers. The cost
advantages of the direct model would likely have caused disruption
with or without the Internet, but the Internet accelerated the shift in
market share and the urgency of other players to react. This
disintermediation has not been nearly as pronounced outside of the
U.S. market, however.
• Both internal and inter firm IT investments can lead to higher
returns on investment as transaction volumes increase. The investment in
an order management system is mostly a fixed cost, with the marginal
costs of handling additional transactions being very low. By contrast,
each time a physical good is handled, there is a marginal cost. If
information can be used to reduce the number of times a product is
handled, or to reduce the need for inventory, the cost savings can be
significant.
To summarize, the driving forces behind the changes in the PC industry
have been a combination of the direct sales model, falling prices
throughout the industry, and faster product cycles increasing the
importance of inventory costs. The use of IT, the Internet and e-
commerce have enabled many of the changes in the industry and have
helped shape the new forms of industry organization that have emerged.
Personal Computer Timeline
25
The industry began in 1977, when Apple, Radio Shack and Commodore
introduced the first off-the-shelf computers as consumer products. The
first machines used an 8-bit microprocessor with a maximum of 64K of
memory and floppy disks for storage. The Apple II, Atari 500, and
Commodore 64 became popular home computers, and Apple was
successful in companies after the VisiCalc spreadsheet was introduced.
However, the business world was soon dominated by the Z80 processor
and CP/M operating system, used by countless vendors in the early
1980s, such as Vector Graphic, NorthStar, Osborne and Kaypro. By
1983, hard disks began to show up, but CP/M was soon to be history.
The IBM PC - Goodbye CP/M, Hello DOS
In 1981, IBM introduced the PC, an Intel 8088-based machine, slightly
faster than the genre, but with 10 times the memory. It was floppy-based,
and its DOS operating system from Microsoft was also available for the
clone makers (MS-DOS). The 8088 was cleverly chosen so that CP/M
software vendors could easily convert their software.
Early 1980s - dBASE, Lotus and the Clones
dBASE II was introduced in 1981 bringing mainframe database functions
to the personal computer level and launching an industry of compatible
products and add-ons. Lotus 1-2-3 was introduced in 1982, and its refined
interface and combined graphics spurred sales of IBM PCs.
The IBM PC was successfully cloned by Compaq and unsuccessfully by
others. However, by the time IBM announced the PC AT in 1984,
vendors were effectively cloning the PC and, as a group, eventually
grabbed the majority of the PC market.
26
Mid-1980s - Apple's Lisa and Mac
In 1983, Apple introduced the Lisa, a graphics-based machine that
simulated the user's desktop. Although ahead of its time, Lisa was
abandoned for the Macintosh in 1984. The graphics-based desktop
environment caught on with the Mac, especially in desktop publishing,
and the graphical interface (GUI) worked its way to the PC world with
Microsoft Windows as well as Ventura Publisher, which ran under a
runtime version of the GEM interface.
Late 1980s - The Mac Gained Ground
In 1986, the Compaq 386 ushered in the first Intel 386-based machine. In
1987, IBM introduced the PS/2, its next generation personal computer,
which added improved graphics, 3.5" floppy disks and an incompatible
peripheral bus to fend off the cloners. In the same year, OS/2, jointly
developed by IBM and Microsoft, was introduced, and more powerful
Macintoshes, such as the Mac SE and Mac II, opened new doors for
Apple. In 1989, the PC makers introduced 486-based computers, and
Apple came out with faster Macs.
The 1990s - The Winner Is Windows
In 1990, Microsoft introduced Windows 3.0, which became a huge
success within a couple of years. Software vendors developed Windows
versions of almost everything. In 1991, Microsoft and IBM decided to go
it alone, each working on their own version of the next operating system
(IBM's OS/2 and Microsoft's Windows NT). NT gained significant
market share, but OS/2 never caught on.
Lower Prices, Faster PCs and Laptops
27
In the early 1990s, Gateway and other mail-order vendors began to slash
hardware prices. All the others followed, and the PC price wars began.
In 1993, Intel introduced its Pentium CPU to provide more speed for
graphical interfaces. The once text-based PC became a graphics
workstation competing with machines that cost 100 times as much only a
few years before. Within a couple of years, the home market would
explode with low-cost, high-performance PCs.
Inspired by Radio Shack's Model 100 introduced over a decade before
and ignited by companies such as Toshiba and Zenith, the laptop market
had explosive growth throughout the 1990s. More circuits were stuffed
into less space, providing computing power on the go that few would
have imagined back in 1977.
The End of the 1990s - Dot-Com Fever
In 1995, the personal computer became a window into the Internet for
global e-mail and access to the fastest growing information bank the
world has ever witnessed. Although graphical Web browsers such as
Mosaic and Netscape were the catalyst, had the personal computer not
been in place, the Web in all of its glory would have never exploded onto
the scene.
28
COMPANY ANALYSIS
PRODUCT ANALYSIS OF THE COMPANY
Brand Peripherals
Server Normal PC Printer Scanners Monitor UPS Modem
Wipro * * * * * *
HCL * * * *
Compaq * * * *
Ibm * * *
Cannon * *
Hykon *
29
Index * *
Other
Brands * * * * * * *
PRODUCT SALES INFORMATION
WIPRO
30
WIPRO
31
WIPRO
CUSTOMER Server
Normal
PC Printer Scanners Monitor UPS Modem
BANKS 36 135 75 35 175 38
HOSPITALS 2 22 12 4 25 5
SOCIETIES 24 82 38 20 110 26
SCHOOLS 4 68 15 4 75 10
SHOPS 12 46 35 80 45
0
20
40
60
80
100
120
140
160
180
200
Server Normal PC Printer Scanners Monitor UPS
BANKS
HOSPITALS
SOCIETIES
SCHOOLS
SHOPS
32
HCL
33
HCL
Customer Server
Normal
PC Printer Scanners Monitor UPS Modem
BANKS 45 125 155 45 42
HOSPITAL
S 1 15 25 5 2
SOCIETIES 9 82 110 26 15
SCHOOLS 2 68 75 10 7
SHOPS 16 15 30 45 10
HCL
0
20
40
60
80
100
120
140
160
180
Server Normal
PC
Printer Scanners Monitor UPS Modem
BANKS
HOSPITALS
SOCIETIES
SCHOOLS
SHOPS
34
COMPAQ
COMPAQ
CUSTOMER Server
Normal
PC Printer Scanners Monitor UPS Modem
BANKS 28 125 15 155
HOSPITALS
SOCIETIES 6 48 50 110
SCHOOLS 3 68 60 75
SHOPS 8 18 15 30
COMPAQ
35
0
20
40
60
80
100
120
140
160
180
Server Normal
PC
Printer Scanners Monitor UPS Modem
BANKS
HOSPITALS
SOCIETIES
SCHOOLS
SHOPS
IBM
36
IBM
37
IBM
CUSTOMER Server
Normal
PC Printer Scanners Monitor UPS Modem
BANKS 15 40 52
HOSPITALS
SOCIETIES 3 18 20
SCHOOLS
SHOPS 7 16 22
0
10
20
30
40
50
60
Server Normal
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Printer Scanners Monitor UPS Modem
BANKS
HOSPITALS
SOCIETIES
SCHOOLS
SHOPS
CANNON SALES ANALYSIS
38
CANNON
CUSTOMER Server
Normal
PC Printer Scanners Monitor UPS Modem
BANKS 15 6
HOSPITALS
SOCIETIES 18 4
SCHOOLS
SHOPS 61 5
CANNON SALES ANALYSIS
39
0
10
20
30
40
50
60
70
Server Normal
PC
Printer Scanners Monitor UPS Modem
BANKS
HOSPITALS
SOCIETIES
SCHOOLS
SHOPS
OTHER BRANDS SALES ANALYSIS
40
OTHER
BRANDS
CUSTOMER Server
Normal
PC Printer Scanners Monitor UPS Modem
BANKS 71 23 5 45 35
2
HOSPITALS 15 41 4 15 5
SOCIETIES 82 18 2 14 26
SCHOOLS 4 15 5 4 15 10
SHOPS 15 14 22 40 45
OTHER BRANDS SALES ANALYSIS
41
0
10
20
30
40
50
60
70
80
90Server
Norm
alPC
Printer
Scanners
M
onitor
UPS
M
odem
BANKS
HOSPITALS
SOCIETIES
SCHOOLS
SHOPS
MARKETING ANALYSIS
Marketing and sales effectiveness
Marketing and Sales Effectiveness is a category of technologies and
services that refers to improving business results through optimizing the
efforts of Marketing and Sales, which, if properly aligned, make each
42
business group more effective. Marketing and Sales Effectiveness is
frequently seen in Technology, Pharmaceutical, Manufacturing,
Insurance, and Financial markets.
Marketing and Sales Effectiveness encompasses all activities taking place
for demand creation, such as lead generation and marketing
communications. It also includes sales readiness and productivity.
Marketing and Sales Effectiveness also requires strategic business and
sales channel alignment for optimum success.
This would manifest itself as a set of technologies, business processes,
and services which enable companies to integrate processes and systems
to achieve business goals.
Structure of Sales & Marketing Division of the Organization
43
MANAGING
DIRECTOR
MARKETING
MANAGER
MARKETING
EXECUTIVES
MARKETING
EXECUTIVES
MARKETING
EXECUTIVES
MARKETING
EXECUTIVES
At safe there is a marketing manger who is in charge of controlling
the sales and marketing activities. He looks after the management of
the sales force. He directs, motivates, and controls the selling
activities. He is in charge of sales campaign. He is responsible for
the management of advertising and sales promotion program. The
manager has to direct and supervise the overall marketing activities.
Managing director negotiates the sales contracts. Marketing
executives convince the customers to buy their products through face
to face relationship or interpersonal interaction.
44
MARKETING AREAS OF SAFE
The main areas of SAFE’S market and customers are from kerala.
This includes customers in banking, Societies, Hospitals, Schools,
and Web Sites etc. Out of these customers the main customers are
Banks and Societies. Support centre are offered from all district so
as to support the customer. Customer service is the main priority of
safe.
MARKETING STRATEGY
45
A marketing strategy is a process that can allow an organization to
concentrate its (always limited) resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage.
Marketing strategy as a key part of the general corporate strategy
A marketing strategy is most effective when it is an integral component
of corporate strategy, defining how the organization will engage
customers, prospects and the competition in the market arena for success.
It is partially derived from broader corporate strategies, corporate
missions, and corporate goals. They should flow from the firm's mission
statement. They are also influenced by a range of micro environmental
factors.
CUSTOMER SUPPORT AND RELATIONSHIP
• Full support at Any time
• Offering cost effective solution.
• Suggesting latest available technology.
• Regular customer feed back
• Believe in long term customer relationship
46
• Relationship to develop customer business
• Locally spread customers support centers.
CHAPTER-IV
1. FINDINGS AND RECOMMENDATIONS
Findings
47
1. Customers have lack of awareness about hardware
peripherals.
2. Safe making delay to introduce new technologies.
3. Safe mainly concentrates domestic market only.
Recommendations
1. SAFE should try to deliver and Implement their hardware
without delay because some customers complained about the
delay in the implementation of the hardware.
2. SAFE should give support and give training to the customers
in hardware maintenance
3. They must concentrate more on marketing of other product
like Hospitals, Personal users etc.
4. Safe must introduce new technologies and implement it
quickly.
5. They must concentrate more on marketing outside of kerala.
2. CONCLUSIONS
The PC industry has undergone a significant shift in structure since the
mid-1990s, driven by industry-wide competitive pressures and by the
ascendance of Dell Computer to the top of the industry. IT has supported
48
the transformation of the industry structure in several ways. Internal IT
systems enable firms to take over multiple steps in complex processes
such as configure-to-order production, and also are developed as generic
assets that can be offered to multiple partners. Inter firm IT systems
enable processes to be standardized and automated between firms. The
Internet in particular, with its open, non-proprietary standards, has
reduced asset specificity and reduced the costs associated with market
transactions, and increased firms’ flexibility in the design of individual
product value chains.
As we argued at the beginning of this paper, IT, the Internet and e-
commerce have enabled organizational restructuring, such as the shift
from supply-driven to demand-driven production and the formation of
different value chains to most effectively support demand-driven
production processes. They have also enabled changes in the structure of
the industry’s global production network. For the most part, however,
major changes were actually driven by competitive pressures in the
industry. With this growing need of sales service in IT sector a proper
planning in all department is required to reach the top level from other
competitors.
Appendix
Questionnaire
Personnel details
Name :
Company name :
49
1. Which PC using in your Organization?
 Wipro
 Compaq
 IBM
 HCL
 Cannon
 Other PC
2. What are the Company accessories available in our organization?
Server
Normal
PC Printer Scanners Monitor UPS Modem
Name
Numbers
3. What are the advantages of adopting SAFE‘s Service?
 Accuracy
 Efficiency
 Customer Satisfaction through speedy clearance
 Automation
4. Which type of Hardware Company you prefer?
50
 Companies from abroad
 Companies in Kerala
 Companies from outside of Kerala
5. Why you using Hardware companies in Kerala. ?
 Very good customer service
 Low cost/ Low investment
 Domestic preference
 Get immediate service support
6. Your Hardware purchasing decision will mostly influenced by?
 Nearest Customers
 Advertisement
 Marketing Executives
 Other Customers opinion
7. What is your opinion about Safe’s service?
 Excellent
 Very Good
 Good
 Bad
51
8. What Type of Service opted?
 AMC
 AMLC
 Call Service
9. Have you used any other hardware of other companies?
 YES
 NO
10. How do you rate the Hardware with regard to upgrades and
implementing the latest technology?
 Excellent
 Very Good
 Good
 Bad
11. Any positive or negative aspects of your hardware noticed by
you?
P________________________________
N________________________________-
_________________________________
__________________________________
52
i) Bibliography
MARKETING MANAGEMENT Philip Kotler
MARKETING MANAGEMENT Philip Kotler &
Gary Amstrong
FUNDAMENTALS OF MARKETING William. J. Stanton
MANAGEMENT Michael. J. Etzel
Bruce. J. Walker
RESEARCH METHODOLOGY C.R. Kothari
METHODOLOGY AND TECHNIQUES Wilkinson &
OF SOCIAL RESEARCH Bhandarkar
ESSENTIALS OF MODERN Mrityun Joy
MARKETING Banerjee
www.safenetin.net
www.google.com
53

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System project

  • 1. CHAPTER- I i) INTRODUCTION The project entitled “A Study on Personal Computer Marketing in Palakkad“is a Marketing study based project based on the Indian industry and the company SAFE Software and Integrated Solution Pvt Ltd, Plakkad. The computer industry rarely stands still, and the ability to respond to a changing environment is fundamental to survival. While change is normally incremental, more dramatic transformations have taken place on occasion as well, driven by new technologies such as the microprocessor, the personal computer and the Internet, by corporate strategies such as IBM’s decision to rely on outside suppliers for key components in its original PC, or by the success of new business models, such as Dell’s direct sales/build-to-order approach. The emergence of the PC and IBM’s strategy for entering the market led to a transformation of the industry structure from vertical integration to horizontal specialization, and to the creation of a global production network for computer hardware. Dell’s success is now transforming the industry from supply-driven to demand- driven production, literally reversing the polarity of the supply chain. Major changes in firm and industry structure have been driven mainly by competitive pressures in the industry and strategic responses to those pressures. However, information technology has played a vital role in enabling many of these changes. Motivated in part by the desire to demonstrate the capabilities of their own products, computer companies have long been leaders in using IT to improve their own processes and to 1
  • 2. coordinate activities within the firm. In addition, they have developed IT networks linking suppliers, customers and business partners to improve efficiency throughout the value chain. The Internet has been especially important in supporting the shift to demand-driven production by making it easier to coordinate information-intensive processes across a global production network. SCOPE OF THE PROJECT a. The main aim of the project is a detailed study on the companies’ strategy on Personal Computer Sales and the type of services offering for customers. b. The project analyzes the present scenario in Indian PC market. c. The project includes the companies’ information of the companies Computer Sales and service d. Can go through the Indian Market share in PC assembling Development Industry. e. History of PC Assembling in India. f. The company can implement new marketing ideas and techniques. g. Customer feed back on services and products. ABOUT HARDWARE INDUSTRY The first adding machine, a precursor of the digital computer was devised in 1642 by the Blaise Pascal. In 1670s Gottfried Wilhelm improved on this machine by devising one that could also multiply instead of just adding and subtracting. During 1880s the American statistician Herman Hollerith conceived the idea of using perforated cards for processing data. 2
  • 3. Employing a system that passed punched cards over electrical contacts, he was able to compile statistical information for the 1890 U.S. census. In the 19th century, the British mathematician and inventor Charles Babbage (the pioneer of digital computer - refer to Babbage’s Folly) worked out the principles of the modern digital computer. The Analytical Engine was designed to handle complicated mathematical problems. 3
  • 4. ii) OBJECTIVES PRIMARY OBJECTIVES • To study the progress of the company in marketing and its implementation. • To Study the Hardware Market • To identify the factors that affects the Market system of Safe. • To know the Customer’s opinion about the ongoing service support provided by the company. • To study the type of services offered SECONDARY OBJECTIVES • To study products and services offered by the firm. • To understand organizational structure of safe 4
  • 5. iii) METHODOLOGY The project is based on descriptive research design. The project includes data’s from different sources from the company, from the customers and from Internet. For the project, data collected through two sources • Primary data • Secondary data PRIMARY DATA The primary data are those, which are collected for the first time and thus happen to be original in character. The data’s includes information collected through interview with President, Secretary, managers, Hardware Engineers, consultant and staffs of the existing customers and other PC users. Internet also guide to collect the data’s about the information of the current trend in PC market and its history. SECONDARY DATA The secondary data are those, which have already been collected by someone else, which have been passed through statistical process. Industry profile, company profile and product profile are some of the secondary data, which have been used for the project. The Data were analyzed through the application of various statistical tools like chart, simple percentage etc. 5
  • 6. LIMITATION OF THE STUDY • Covering the total customers is practically difficult one so that limited to certain numbers according to the type of customers. • The study has restricted only to kerala. Hence the result of the study cannot be generalized for the entire state. • Time constraints were an important factor, which limited the detailed study. • Unavailability of important staffs also made difficult in collecting valuable information • As some information is very important for the company to disclose, that information is not added in this project. 6
  • 7. CHAPTER -II COMPANY PROFILE i) BRIEF INTRODUCTION OF THE COMPANY SAFE SOFTWARE AND INTEGRATED SOLUTION Pvt. Ltd, Palakkad, has been in the Co-operative Banking Computerization field for the past 16 years. Now they are one of the leading Private Limited companies providing Total Solution (Banking Software, system software, computer hardware, networking, training & Consultancy) for computerization in Co-operative Banking Sector in Kerala. Their expertise in Software, Hardware & Networking Maintenance reach many satisfied customer Banks in Palakkad, Eranakulam, Thiruvananthapuram, Kasargode,Trichur, Kannur and Andaman Nicobar Island. Most of their customer- Banks are looking for single point maintenance for their Software, Hardware and Networking related problems. They confidently took up this responsibility and satisfactorily provided Total Computer Solution to all their Customers. They have full-fledged and well-equipped computer software, hardware and network training and maintenance facility in Palakkad town. More than 75 employees are working in this organization. Safe’s training and maintenance centre has a group of highly qualified and experienced personnel. ISO CERTIFICATION Safe is an ISO 9001:2000 company strictly following the quality management standard product and service supports to their customers. 7
  • 8. ORGANISATIONAL HIERARCHY – HARDWARE SECTION 8 MD Chief Technical Officer Regional Manager Customer Relation Manager Marketing Manager Hardware Consultant Service Engineers Marketing Executives Hardware Engineer Network Adinistrat or Supervisor Service Engineers
  • 9. ii) HISTORY OF THE ORGANIZATION SAFE an Overview The Company being a Specialized and Complete Banking Solution Provider has as Heads, Skilled Professionals having Experience of more than 30 years in Banking and Auditing and more than 16 years of Experience in Co-operative Banking Computerization and cater all the IT requirements of Banks. • Established in 1993 in Palakkad. • Started as a Cooperative Banking Software Development Company. • Support Centers at Kochi, Thrissur, Kannur, Kahnjangad and Kasargod. • Full-fledged Software Development & High-end HW/SW Maintenance Centers. • High-end Software, Hardware and Networking Training Centers in Palakkad. • Leading Total Solution Providers in Co-operative Banking Sector in Kerala. • More Than Thirteen Years of Experience in Cooperative Banking computerization. • Fastest Growing Total Solution provider. 9
  • 10. • Highly Professional and Dedicated Personnel. • Operating in Kerala and Outside. Total Solution Providers They have been in the Co-operative Banking Computerization field for the past 15 years. Now they are one of the leading Private Limited companies providing Total Solution (Banking Software, system software, computer hardware, networking & Consultancy) for computerization in Co-operative Banking Sector in Kerala. Their expertise in Software, Hardware & Networking Maintenance reach more than 200 satisfied customer Banks in Palakkad, Trichur, Thiruvanandapuram, kasargode, Eranakulam and Kannur. Most of their customer- Banks are looking for a single point maintenance for their Software, Hardware and Networking related problems. Safe confidently under took this responsibility and satisfactorily provided Total Computer Solution to all their Customers. They have full-fledged and well-equipped computer software, hardware and network training and maintenance facility in Palakkad town. Their training and maintenance centre has a group of highly qualified and experienced personnel. Also, Safe makes available to their clientele all standard computer hardware, peripherals and stationary items at very competitive rates. 10
  • 11. Banking Software M/s Safe Software & Integrated Solutions Pvt. Ltd., Palakkad, have exhaustive experience in computerization of District Co-Operative Bank), Co-operative Urban Bank) and Primary Co-Operative Banks (Kannur, Palakkad, Trichur & Ernakulam) in Kerala. Safe have more than hundred successful installations to their credit in Kerala State. Safe have very reliable and time-tested switching solutions for high-end retail banking. These switching solutions are widely accepted by number of large banks and software companies. Safe have detailed the features and implementation plan of the software in the enclosed manual. Their Banking Software is being made use of by a number of Co-operative Banks in Palakkad, Trissur, Kannur and Ernakulam districts. High-end Banking Delivery Channels Safe implement switching solutions for high-end retail banking. This technology is widely accepted by number of large banks and software companies. Safe confidently propose this relatively inexpensive and highly reliable solution to District Cooperative banks and to Urban banks for various Retail Banking Delivery Channels like- Any Branch Banking, ATM, Web Banking and Tele Banking 11
  • 12. Disaster Recovery Latest requirement in the banking sector is for a reliable and legal DISASTER RECOVERY plan. Safe have various confirmed and time- tested Disaster Recovery and Backup Solutions for banking sector, which Safe provide to the end-user through authorized DIGITAL SIGNATURE Service Providers. Safe also provide complete Data Transfer solutions for inter-branch consolidation and other activities. Hardware Support Center Safe have the pleasure to introduce their newly organized Hardware Maintenance team. A well-experienced communications engineer who has number of years of maintenance experience in the fields of Communications and Computer to his credit heads the team. The team also consists of an experienced Microsoft Certified Systems Engineers. Their maintenance engineers are innovative in their attitude and are guided by the latest available maintenance management techniques to achieve a high level of QOS. Safe have already undertaken Hardware & Network Annual Maintenance Contract in many Co-operative banks in Palakkad Dist. and have provided an impressive level of service and reliability to the satisfaction of all Their customer banks. 12
  • 13. COMPANIES SOFTWARE PRODUCTS PRODUCT ANALYSIS PRODUCTS 1. SIBS The group has developed a Complete Banking Software Package- SIBS (SAFE INTEGRATE BANKING SOFTWARE) using State-of- the Art Client/Server Technology. The Product has over 20 Core Modules and Other Add on Modules covering all the Essential Operations of a Branch and Head Office including:- 1.1 BRANCH AUTOMATION It cover Share Capital & Dividend , Deposit (SB,CA, Fixed ), Loans and Advances, Gold /Jewell Loan , Investment & Borrowings , Suspense Accounting , Bills Collection ,Clearing Remittance , Cash Credit, Over Draft, Locker, Kurries /Chitties, Cash Management, Miscellaneous, Inventory /Consumer (Sales,Purchase,Stock), Miscellaneous, Loan Recovery & Monitoring System 13
  • 14. 1.2 HEAD OFFICE AUTOMATION It covers HO & Consolidation, PayRoll, Investment & Borrowing inter Branch, Basic Statistical Returns , Balance Sheet Analysis , Branch Performance and Bank Reconciliation. 1.3 ADD ON MODULES Performance Monitoring & Resource Management, ALM, Asset Tracking, Contact Management, Budgeting, Extension Counter , ATM Interface, Internet Banking, Wap Banking , Tele Banking Interface , Basic Statistical Returns , Balance Sheet Analysis , Branch Performance., Dispatching. Customer Terminal , Audit Terminal SIBS FEATURES • Bank’s Overall Development • Customer Satisfaction. • Complete M.I.S for Analyzing, Decision Making & Administrative Purpose. • Up gradation & Implementations of Latest Technologies to increase the overall effectiveness of the system. • Cost Saving through Over All Progress, Minimum Maintenance and Increased Productivity 14
  • 15. • The Need for a Complete Banking Software Under 3 Tier Client/Server Architecture that would take the Bank into 21st Century with Confidence and • With out becoming obsolete or inflexible. SIBS ADVANTAGES • User Friendly • More than 600 Reports (Accounting , MIS & Graphical) • Screen Layout Resembles the Normal Banking Transaction • Simple Day Begin & Day End Procedure • Elimination of Redundant effort • Improved Management control • Enhanced Customer services • Facility to monitor individual customers and accounts • Monitoring Systems for Different Sections • Branch MIS for Performance Analysis • Capacity to generate Adhoc Internal reports • Automatic generation of MIS & Statutory reports SIBS has a Graphical user interface and uses Multi-tasking capability of Windows. Besides these it has security features, automated signature verification, photograph storage and retrieval. 15
  • 16. SIBS - Total Branch Automation (TBA ) Salient Features • Maximum parameterization • Modular structure • Structured design • Multiple levels of security • Signature – photographs storage and retrieval • Floppy based direct debit & credit to Avoid Manual Entry • Batch processing of back office operations • Object Oriented programming • Branch MIS • Data Transfer to HO (Through Modem, Internet, RAS, Floppy) 2. SIHAS SIHAS- SAFE Integrated Hospital Automation Software, The Complete Co-operative Hospital Software that combines the latest technology with the Hospital expertise of professionals who have been with the co-operative Hospital system for the past 5 years 16
  • 17. brought to you by SAFE, a company whose top priority is customer Satisfaction. SCHOLAR - Smart school Management System “We recognize that education, knowledge, information and communication are at the core of human progress, endeavour and well- being“The success of this system lies in correct knowledge dissemination process blended with smooth and efficient functioning of management systemScholar –The Complete School Management system is specially made for Educational Institutions for hassle free Management of the Institution. It provides a fully automated system from admission of a student and tracks it up to the TC. Everything in school from academic to extra curricular and even health records of the students are constantly a click away in this software SAMS Attendance Monitoring and Access control are the key factors to be focused for the comfortable and efficient working of any establishment. This is the area where Smart card/Biometric solutions play a significant role. SAMS has the advantage of both these interfaces for achieving this purpose. The Payroll section will use the data collected through the attendance monitoring system to calculate the pay of each employee. EASY SHOP Easy Shop is an integrated solution for retail management with Location wise inventory management, Purchase order generation, Reorder level maintenance and variety of reports. Easy Shop also takes care of all Stock maintenance on the store and accounts report based on the purchase, sales and other expenses 17
  • 18. SMS Solutions In today’s work environment, daily deadlines, appointments and meetings are predictable. And often, one is hard pressed for time. In such a situation SMS Solution comes as a great convenience. SMS service allows you to do transactions on your mobile phone without making a call, using the SMS facility. It keeps you informed about the significant transactions in your account. All one needs to do this type, out a short text message on the mobile and send it out to a pre-designated number. The response is sent back as an SMS message. With our SMS system, the mobile becomes a powerful input/output device through which all kinds of transactions can be performed with assured security and data integrity. IVRS Solutions Interactive Voice Response System is a runtime application in the state- of-art communication system that facilitates 24-hours-a-day, 365-days-a- year communication between Service Provider and its customers. Customers can make call over a telephone line, and the Service provider can provide information over the same telephone line. With our IVR, the simple telephone instrument becomes a powerful input/output device through which all kinds of transactions can be performed with assured security and data integrity. 18
  • 19. CHAPTER- III ANALYSIS ABOUT HARDWARE MARKETING About Personal Computers Sales Value Chain The personal computer is a based on a modular architecture whose components, peripherals, and software can be designed independently and integrated into the final system using standard technical interfaces (Ulrich, 1995). This product architecture, which became the dominant design with the introduction of the IBM PC in 1981, led most PC makers to rely on outside suppliers of most components and peripherals. The result was a horizontally segmented industry structure in which most firms compete in one or two segments only, making components, subassemblies, systems or peripherals, developing software, or providing sales, distribution, technical support and other services (Grove, 1996). Today, all of the components needed to assemble a desktop PC are 19
  • 20. available from a vast network of suppliers and a finished system can be built with little more than rudimentary technical knowledge. By the mid-1990s, the PC industry had matured into a fairly well- established industry structure, based on specialization of functions across the value chain (Figure 1). PCs were assembled by the major vendors using standard assembly line production methods, with production volumes set to meet demand forecasts. Components and sub-assemblies were shipped by component manufacturers and contract manufacturers to meet production schedules. Finished systems were sent to distributors, who held inventory for sale to retailers and resellers, who also held inventory for sale to the final customer. All of this entailed high levels of inventory throughout the system, and many transfers and touches of the product on the way to the customer. The biggest winner under this industry structure was Compaq Computer, which supplanted IBM as the number one PC vendor in the U.S. and worldwide in 1994 by combining aggressive pricing with widespread distribution and a reputation for high quality. Figure 1. Indirect sales value chain This apparently stable industry structure was disrupted by a series of changes in the late 1990s. One factor was the rapid decline in PC prices, which had long remained in the $2500 range. By the end of the millennium, thanks to falling component costs, and a shift of 20 Final Customer Components makers Contract manufacturers PC makers Distributors Resellers/ retailers R&D, Manufacturing Design, engineering, Final assembly, Marketing Distribution Sales, Configuration, Installation, service Manufacturing
  • 21. manufacturing to low-cost locations, the average selling price of a PC had been cut in half. While much of the price decline reflected lower components costs, price wars among PC makers had driven gross margins down as well. In addition, there was acceleration in the rate of product cycles, driven by competition in the microprocessor market that led Intel to speed up its introduction of new processor generations. This led to faster depreciation of components and finished goods, putting a premium on minimizing inventory throughout the value chain (Curry and Kenney, 1999). Direct sales and demand-driven production A more fundamental destabilizing force in the industry was the success of the direct sales, build-to-order (BTO) strategy exemplified by SAFE . Under this model, PC makers assemble systems as orders come in, usually allowing customers to choose from a set of configurations, and ship the product directly to the customer (Figure 2). Direct sales bypass distributors and retailers, taking out their profit margin. Meanwhile, business processes were fundamentally altered by the shift from supply- driven (build-to-forecast) to demand-driven (build-to-order) production. The direct sales/build-to-order model reduced inventory across the supply chain, giving it a significant cost advantage. It also allowed PC makers to achieve product differentiation through customization, in an industry whose products were otherwise almost impossible to tell apart (Kraemer et al., 2000; Dedrick and Kraemer, 2002). 21
  • 22. Figure 2 Direct sales value chain The direct model, particularly as executed by Dell, achieved superior performance in measures such as net profit margin, return on equity and inventory turnover, and also enabled the PC vendor to develop a close relationship with the final customer. Indirect sellers such as Compaq, IBM and HP worked with channel partners to develop hybrid direct delivery processes, leading to major improvements in efficiency across the industry. For instance, the industry average for inventory turnover rose from 12.9 turns per year in 1998 to 53.5 turns in 2001 (Kraemer et al., 2000; Hoovers Online, 2002). 22 Component Makers Contract manufacturese PC maker Final customer
  • 23. The final factor in the transformation of the industry was the widespread adoption of the Internet by PC makers and their customers in the late 1990s. Dell and Gateway had been selling PCs directly to customers for over a decade by 1995, when the Internet first became available for commercial use, and had managed to capture a combined U.S. market share of just 10%. By 2000, that share had tripled to over 30%. While the Internet was not the only factor, it did play to the advantage of the direct vendors, who found it easy to offer online sales using the same infrastructure for product configuration and order fulfillment already in place to support telephone or catalog sales. With no distributors or resellers to contend with, there was no problem with channel conflict when the direct vendors began to sell online. The Internet also allowed computer makers to offer a variety of services such as customized extranets to large customers, and online support to smaller ones. The shift from indirect to direct selling and supply-driven to demand- driven production has been accompanied by changes in the way that PCs are produced and by whom. The result has been a subtle but significant transformation of the overall industry structure and of individual firms’ supply chains. Impacts of IT, the Internet and E-commerce on the PC Industry What impacts have internal IT and interfirm networks had on the PC industry? I found that the Internet and other forms of e-commerce, combined with internal IT applications, have enabled many of the recent changes in the structure of the industry. 23
  • 24. • The capabilities of tightly integrated internal IT systems have supported the shift from supply-driven to demand-driven production by linking the entire order fulfillment process, from order-taking to delivery. The internal IT systems of PC makers are able to handle large amounts of complex data and transmit necessary information to internal units and external partners to fulfill their functions. The internal IT systems of CMs and distributors are important resources that enable these firms to expand their capabilities and geographic scope. As a result these firms can offer a wider range of value chain activities, and PC makers can outsource an entire set of processes to them. • Use of the Internet enables greater speed and flexibility in the supply chain, which is especially important in demand-driven processes. The Internet provides a common infrastructure and set of standards to all firms, without the need for investment in expensive proprietary network infrastructure. As a result, at least some forms of information can be exchanged quite easily, such as product and price information, sales and production forecasts, inventory information, and technical documentation. This information is sufficient to support a wide range of transactions, given the standardization of most products and some processes. • The Internet and EDI support the industry’s modular production and distribution network by standardizing information sharing, and allow for greater flexibility in designing the value chain. Direct shipment from a contract manufacturer to the customer is simpler and faster than having the product change hands several times, but requires 24
  • 25. complex information flows to trigger and record physical actions and financial transactions. • The Internet is well-suited to direct sales, and has led to disintermediation of the supply chain for an increasing share of PC sales, which no longer go through distributors and resellers. The cost advantages of the direct model would likely have caused disruption with or without the Internet, but the Internet accelerated the shift in market share and the urgency of other players to react. This disintermediation has not been nearly as pronounced outside of the U.S. market, however. • Both internal and inter firm IT investments can lead to higher returns on investment as transaction volumes increase. The investment in an order management system is mostly a fixed cost, with the marginal costs of handling additional transactions being very low. By contrast, each time a physical good is handled, there is a marginal cost. If information can be used to reduce the number of times a product is handled, or to reduce the need for inventory, the cost savings can be significant. To summarize, the driving forces behind the changes in the PC industry have been a combination of the direct sales model, falling prices throughout the industry, and faster product cycles increasing the importance of inventory costs. The use of IT, the Internet and e- commerce have enabled many of the changes in the industry and have helped shape the new forms of industry organization that have emerged. Personal Computer Timeline 25
  • 26. The industry began in 1977, when Apple, Radio Shack and Commodore introduced the first off-the-shelf computers as consumer products. The first machines used an 8-bit microprocessor with a maximum of 64K of memory and floppy disks for storage. The Apple II, Atari 500, and Commodore 64 became popular home computers, and Apple was successful in companies after the VisiCalc spreadsheet was introduced. However, the business world was soon dominated by the Z80 processor and CP/M operating system, used by countless vendors in the early 1980s, such as Vector Graphic, NorthStar, Osborne and Kaypro. By 1983, hard disks began to show up, but CP/M was soon to be history. The IBM PC - Goodbye CP/M, Hello DOS In 1981, IBM introduced the PC, an Intel 8088-based machine, slightly faster than the genre, but with 10 times the memory. It was floppy-based, and its DOS operating system from Microsoft was also available for the clone makers (MS-DOS). The 8088 was cleverly chosen so that CP/M software vendors could easily convert their software. Early 1980s - dBASE, Lotus and the Clones dBASE II was introduced in 1981 bringing mainframe database functions to the personal computer level and launching an industry of compatible products and add-ons. Lotus 1-2-3 was introduced in 1982, and its refined interface and combined graphics spurred sales of IBM PCs. The IBM PC was successfully cloned by Compaq and unsuccessfully by others. However, by the time IBM announced the PC AT in 1984, vendors were effectively cloning the PC and, as a group, eventually grabbed the majority of the PC market. 26
  • 27. Mid-1980s - Apple's Lisa and Mac In 1983, Apple introduced the Lisa, a graphics-based machine that simulated the user's desktop. Although ahead of its time, Lisa was abandoned for the Macintosh in 1984. The graphics-based desktop environment caught on with the Mac, especially in desktop publishing, and the graphical interface (GUI) worked its way to the PC world with Microsoft Windows as well as Ventura Publisher, which ran under a runtime version of the GEM interface. Late 1980s - The Mac Gained Ground In 1986, the Compaq 386 ushered in the first Intel 386-based machine. In 1987, IBM introduced the PS/2, its next generation personal computer, which added improved graphics, 3.5" floppy disks and an incompatible peripheral bus to fend off the cloners. In the same year, OS/2, jointly developed by IBM and Microsoft, was introduced, and more powerful Macintoshes, such as the Mac SE and Mac II, opened new doors for Apple. In 1989, the PC makers introduced 486-based computers, and Apple came out with faster Macs. The 1990s - The Winner Is Windows In 1990, Microsoft introduced Windows 3.0, which became a huge success within a couple of years. Software vendors developed Windows versions of almost everything. In 1991, Microsoft and IBM decided to go it alone, each working on their own version of the next operating system (IBM's OS/2 and Microsoft's Windows NT). NT gained significant market share, but OS/2 never caught on. Lower Prices, Faster PCs and Laptops 27
  • 28. In the early 1990s, Gateway and other mail-order vendors began to slash hardware prices. All the others followed, and the PC price wars began. In 1993, Intel introduced its Pentium CPU to provide more speed for graphical interfaces. The once text-based PC became a graphics workstation competing with machines that cost 100 times as much only a few years before. Within a couple of years, the home market would explode with low-cost, high-performance PCs. Inspired by Radio Shack's Model 100 introduced over a decade before and ignited by companies such as Toshiba and Zenith, the laptop market had explosive growth throughout the 1990s. More circuits were stuffed into less space, providing computing power on the go that few would have imagined back in 1977. The End of the 1990s - Dot-Com Fever In 1995, the personal computer became a window into the Internet for global e-mail and access to the fastest growing information bank the world has ever witnessed. Although graphical Web browsers such as Mosaic and Netscape were the catalyst, had the personal computer not been in place, the Web in all of its glory would have never exploded onto the scene. 28
  • 29. COMPANY ANALYSIS PRODUCT ANALYSIS OF THE COMPANY Brand Peripherals Server Normal PC Printer Scanners Monitor UPS Modem Wipro * * * * * * HCL * * * * Compaq * * * * Ibm * * * Cannon * * Hykon * 29
  • 30. Index * * Other Brands * * * * * * * PRODUCT SALES INFORMATION WIPRO 30
  • 31. WIPRO 31 WIPRO CUSTOMER Server Normal PC Printer Scanners Monitor UPS Modem BANKS 36 135 75 35 175 38 HOSPITALS 2 22 12 4 25 5 SOCIETIES 24 82 38 20 110 26 SCHOOLS 4 68 15 4 75 10 SHOPS 12 46 35 80 45
  • 32. 0 20 40 60 80 100 120 140 160 180 200 Server Normal PC Printer Scanners Monitor UPS BANKS HOSPITALS SOCIETIES SCHOOLS SHOPS 32
  • 33. HCL 33 HCL Customer Server Normal PC Printer Scanners Monitor UPS Modem BANKS 45 125 155 45 42 HOSPITAL S 1 15 25 5 2 SOCIETIES 9 82 110 26 15 SCHOOLS 2 68 75 10 7 SHOPS 16 15 30 45 10
  • 34. HCL 0 20 40 60 80 100 120 140 160 180 Server Normal PC Printer Scanners Monitor UPS Modem BANKS HOSPITALS SOCIETIES SCHOOLS SHOPS 34
  • 35. COMPAQ COMPAQ CUSTOMER Server Normal PC Printer Scanners Monitor UPS Modem BANKS 28 125 15 155 HOSPITALS SOCIETIES 6 48 50 110 SCHOOLS 3 68 60 75 SHOPS 8 18 15 30 COMPAQ 35
  • 36. 0 20 40 60 80 100 120 140 160 180 Server Normal PC Printer Scanners Monitor UPS Modem BANKS HOSPITALS SOCIETIES SCHOOLS SHOPS IBM 36
  • 37. IBM 37 IBM CUSTOMER Server Normal PC Printer Scanners Monitor UPS Modem BANKS 15 40 52 HOSPITALS SOCIETIES 3 18 20 SCHOOLS SHOPS 7 16 22
  • 38. 0 10 20 30 40 50 60 Server Normal PC Printer Scanners Monitor UPS Modem BANKS HOSPITALS SOCIETIES SCHOOLS SHOPS CANNON SALES ANALYSIS 38
  • 39. CANNON CUSTOMER Server Normal PC Printer Scanners Monitor UPS Modem BANKS 15 6 HOSPITALS SOCIETIES 18 4 SCHOOLS SHOPS 61 5 CANNON SALES ANALYSIS 39
  • 40. 0 10 20 30 40 50 60 70 Server Normal PC Printer Scanners Monitor UPS Modem BANKS HOSPITALS SOCIETIES SCHOOLS SHOPS OTHER BRANDS SALES ANALYSIS 40
  • 41. OTHER BRANDS CUSTOMER Server Normal PC Printer Scanners Monitor UPS Modem BANKS 71 23 5 45 35 2 HOSPITALS 15 41 4 15 5 SOCIETIES 82 18 2 14 26 SCHOOLS 4 15 5 4 15 10 SHOPS 15 14 22 40 45 OTHER BRANDS SALES ANALYSIS 41
  • 42. 0 10 20 30 40 50 60 70 80 90Server Norm alPC Printer Scanners M onitor UPS M odem BANKS HOSPITALS SOCIETIES SCHOOLS SHOPS MARKETING ANALYSIS Marketing and sales effectiveness Marketing and Sales Effectiveness is a category of technologies and services that refers to improving business results through optimizing the efforts of Marketing and Sales, which, if properly aligned, make each 42
  • 43. business group more effective. Marketing and Sales Effectiveness is frequently seen in Technology, Pharmaceutical, Manufacturing, Insurance, and Financial markets. Marketing and Sales Effectiveness encompasses all activities taking place for demand creation, such as lead generation and marketing communications. It also includes sales readiness and productivity. Marketing and Sales Effectiveness also requires strategic business and sales channel alignment for optimum success. This would manifest itself as a set of technologies, business processes, and services which enable companies to integrate processes and systems to achieve business goals. Structure of Sales & Marketing Division of the Organization 43 MANAGING DIRECTOR MARKETING MANAGER MARKETING EXECUTIVES MARKETING EXECUTIVES MARKETING EXECUTIVES MARKETING EXECUTIVES
  • 44. At safe there is a marketing manger who is in charge of controlling the sales and marketing activities. He looks after the management of the sales force. He directs, motivates, and controls the selling activities. He is in charge of sales campaign. He is responsible for the management of advertising and sales promotion program. The manager has to direct and supervise the overall marketing activities. Managing director negotiates the sales contracts. Marketing executives convince the customers to buy their products through face to face relationship or interpersonal interaction. 44
  • 45. MARKETING AREAS OF SAFE The main areas of SAFE’S market and customers are from kerala. This includes customers in banking, Societies, Hospitals, Schools, and Web Sites etc. Out of these customers the main customers are Banks and Societies. Support centre are offered from all district so as to support the customer. Customer service is the main priority of safe. MARKETING STRATEGY 45
  • 46. A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategy as a key part of the general corporate strategy A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and the competition in the market arena for success. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of micro environmental factors. CUSTOMER SUPPORT AND RELATIONSHIP • Full support at Any time • Offering cost effective solution. • Suggesting latest available technology. • Regular customer feed back • Believe in long term customer relationship 46
  • 47. • Relationship to develop customer business • Locally spread customers support centers. CHAPTER-IV 1. FINDINGS AND RECOMMENDATIONS Findings 47
  • 48. 1. Customers have lack of awareness about hardware peripherals. 2. Safe making delay to introduce new technologies. 3. Safe mainly concentrates domestic market only. Recommendations 1. SAFE should try to deliver and Implement their hardware without delay because some customers complained about the delay in the implementation of the hardware. 2. SAFE should give support and give training to the customers in hardware maintenance 3. They must concentrate more on marketing of other product like Hospitals, Personal users etc. 4. Safe must introduce new technologies and implement it quickly. 5. They must concentrate more on marketing outside of kerala. 2. CONCLUSIONS The PC industry has undergone a significant shift in structure since the mid-1990s, driven by industry-wide competitive pressures and by the ascendance of Dell Computer to the top of the industry. IT has supported 48
  • 49. the transformation of the industry structure in several ways. Internal IT systems enable firms to take over multiple steps in complex processes such as configure-to-order production, and also are developed as generic assets that can be offered to multiple partners. Inter firm IT systems enable processes to be standardized and automated between firms. The Internet in particular, with its open, non-proprietary standards, has reduced asset specificity and reduced the costs associated with market transactions, and increased firms’ flexibility in the design of individual product value chains. As we argued at the beginning of this paper, IT, the Internet and e- commerce have enabled organizational restructuring, such as the shift from supply-driven to demand-driven production and the formation of different value chains to most effectively support demand-driven production processes. They have also enabled changes in the structure of the industry’s global production network. For the most part, however, major changes were actually driven by competitive pressures in the industry. With this growing need of sales service in IT sector a proper planning in all department is required to reach the top level from other competitors. Appendix Questionnaire Personnel details Name : Company name : 49
  • 50. 1. Which PC using in your Organization?  Wipro  Compaq  IBM  HCL  Cannon  Other PC 2. What are the Company accessories available in our organization? Server Normal PC Printer Scanners Monitor UPS Modem Name Numbers 3. What are the advantages of adopting SAFE‘s Service?  Accuracy  Efficiency  Customer Satisfaction through speedy clearance  Automation 4. Which type of Hardware Company you prefer? 50
  • 51.  Companies from abroad  Companies in Kerala  Companies from outside of Kerala 5. Why you using Hardware companies in Kerala. ?  Very good customer service  Low cost/ Low investment  Domestic preference  Get immediate service support 6. Your Hardware purchasing decision will mostly influenced by?  Nearest Customers  Advertisement  Marketing Executives  Other Customers opinion 7. What is your opinion about Safe’s service?  Excellent  Very Good  Good  Bad 51
  • 52. 8. What Type of Service opted?  AMC  AMLC  Call Service 9. Have you used any other hardware of other companies?  YES  NO 10. How do you rate the Hardware with regard to upgrades and implementing the latest technology?  Excellent  Very Good  Good  Bad 11. Any positive or negative aspects of your hardware noticed by you? P________________________________ N________________________________- _________________________________ __________________________________ 52
  • 53. i) Bibliography MARKETING MANAGEMENT Philip Kotler MARKETING MANAGEMENT Philip Kotler & Gary Amstrong FUNDAMENTALS OF MARKETING William. J. Stanton MANAGEMENT Michael. J. Etzel Bruce. J. Walker RESEARCH METHODOLOGY C.R. Kothari METHODOLOGY AND TECHNIQUES Wilkinson & OF SOCIAL RESEARCH Bhandarkar ESSENTIALS OF MODERN Mrityun Joy MARKETING Banerjee www.safenetin.net www.google.com 53