Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Seagate Leverage Buyout Essay

Open Document

Below is an essay on "Seagate Leverage Buyout" from Anti Essays, your source for research papers, essays, and term paper examples.

Disk Driv e I ndu st ry
Bac kgro und
Hard disk driv es mak e up the largest sec to r of the info rmation storage industry in 1 999. T he hard disk driv e
mark et c an be c lassified into three separate c ategories, desk to p, enterprise, and mo bile. T he mobile and
desk to p mark ets are ex pec ted to c onv erge in the long run. While the desk top mark et represents
approx imately 5 8% o f the $ 25 billion total hard disk driv e mark et, enterprise margins were nearly double
the margins in the desk to p sec tor (1 0-1 5 % ). Sinc e 1 997 , the number o f disk driv e units sold has gro wn while
pric es hav e dropped dramatic ally , c ausing ov erall rev enues to dec line. T his situation is ex pec ted to
c o ntinue, with rev enue growth lagging f ar behind unit growth due to the v igo rous c o mpetitio n between disk
driv e manuf ac turers.
Gro w th Oppo rtunitie s
One identified growth o pportunity within the disk driv e industry is sto rage network ing, whic h prov ides disk
driv e manuf ac turers the ability to diff erentiate their pro duc ts. T he other identif ied gro wth o ppo rtunity is
within the c onsumer elec tro nic s mark et. While only projec ted to hav e sales o f $ 0.5 billio n in 2000, the
c o nsumer elec tro nic s mark et is ex pec ted to grow ov er 5 0% annually ov er the nex t three y ears.
Seagat e's Underv aluat ion
Bac kgro und
Founded in 1 97 9, Seagate T ec hnology , I nc . is the mark et leading manuf ac turer of c o mputer hard driv es,
o wning 21 .1 % o f the total disk driv e mark et in 1 999, an industry where six c o mpanies ac c ount for 95 % o f
sales. Seagate also had the largest mark et share o f the Enterprise (4 1 % ) and Desk to p (21 .1 % ) disk driv e
mark et sec tors in 1 999.
I n May 1 999, Seagate sold its Network & Storage Management Group to V ERI T A S Sof tware Co rpo ratio n, an
independent manufac turer of sto rage management sy stems, fo r appro x imately 1 5 5 millio n shares o f
V ERI T A S...

Show More


MLA Citation

"Seagate Leverage Buyout". Anti Essays. 12 Dec. 2018


APA Citation

Seagate Leverage Buyout. Anti Essays. Retrieved December 12, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Seagate-Leverage-Buyout-358032.html