Introduction In this paper I will discuss the industry structure and the behavior of firms in the Personal Computer Industry. The personal computer industry has five leaders: Compaq Computer Corporation (CCC), Dell Computer Corporation, International Business Machines (IBM), Hewlett-Packard, and Gateway, (Industry Survey, Apr. 2000). The PC industry, as discussed in the paper, is comprised only of home/business use machines, not mainframes, databases, or any kind of servers or super-computers. The PC industry is a …showed first 75 words of 1002 total…

…showed last 75 words of 1002 total…of the PC market and a very healthy reputation for quality PC’s and peripherals, (Industry Survey, Apr. 2000). HP has had some growth in the past few years but has failed to match the industry growth rates. The company’s years of poor quality put a considerable hurt on their future growth; while HP was busy filling in the hole it dug for itself, industry leaders like Compaq and Dell were basking in their success.