IBM

Description

Encompassing products ranging from mice to mainframe computers, the computer hardware industry serves an equally wide range of customers -- from consumers purchasing PC peripherals to multibillion-dollar global corporations installing entire networks. Accordingly, industry players include companies that focus exclusively on enterprise or personal computing, as well as companies that successfully cater to both markets. Market definition plays a key role in a sector marked by frequent acquisitions, rapid spending swings, and bitter price wars. Highly diversified vendors like IBM and Hewlett-Packard (HP) bolster themselves against a volatile hardware market with product and market breadth. Not exclusive to the Western hemisphere, the bigger-is-better strategy is also practiced by Japanese conglomerates such as NEC, Fujitsu, and Toshiba. Having such diverse product lines not only provides some insurance, it also allows technology vendors to be one-stop shops for enterprise customers with equally diverse needs. This model might at first sound like the technology market's equivalent to Wal-Mart, but high-tech products require high-tech services, and these organizations include highly trained (and highly lucrative) armies of consultants and support staff.

Apple

Description

Computers are still an important part of its mix, but these days music-related products are at the top of Apple's playlist. The company scored a runaway hit with its digital music players (iPod) and online music store (iTunes). Apple's desktop and laptop computers -- all of which feature its OS X operating system -- include its Mac mini, iMac, and MacBook for the consumer and education markets, and more powerful Power Mac and MacBook Pro for high-end consumers and professionals involved in design and publishing. Other products include servers (Xserve), wireless networking equipment (Airport), and publishing and multimedia software. The company's FileMaker subsidiary makes database software.RETURN