This website uses cookies to ensure you have the best experience. Learn more

Porter's Five Forces Of Computer Industry

551 words - 3 pages

B. Industry Analysis (Porter’s Five Forces)
1. Rivalry Among Competitors
The competition in personal computer industry is very intense and fierce. The five main manufacturers namely IBM, Dell, Apple, HP and Compaq are in competition to produce the least expensive and most efficient machine. Apple focuses more on innovation while Dell focuses on distribution channel and services, which create differentiation to some extent. Price competition has become severe in the industry as PC has become a more commodity-like product. This in turn has drives the industry to embrace any cost-cutting measures in an effort to increase their decreasing profit margin. Since the quality of a personal computer is largely determined by the microprocessor and application system installed, the profitability and prosperity of the industry is dependent of the profitability and prosperity of ...view middle of the document...

However, this treat would be low since the companies have created strong branding awareness.
3. Bargaining Power of Buyers
Organizations, governments and schools that purchase computers in a large volume have bargaining power in relation to price, feature and service plans. While personal computer buyers are price sensitive and do not exhibit strong brand loyalty. The switching costs are low. This situation places the buyer power in a strong position that can only be countered by manufacturer with strong product differentiation that would increase the switching costs. As long as buyers see little difference in the quality and features of available computers, price will determine their purchasing choice. Hence, the bargaining power of buyers can be consider as strong.
4. Bargaining Power of Suppliers
Personal computers are comprised of various components such as the microprocessor, motherboard, memory storage and peripherals like monitor, keyboard and mouse along with bundled software. Most of the components are highly standardized and widely available from many suppliers. Thus, suppliers of those components have low market power. An exception to these suppliers is INTEL whose has a strong influence over the personal computer industry as it is a single major supplier of microprocessor. The bargaining power of suppliers is moderate because the suppliers are in direct competition with each other to obtain exclusive contracts with the manufacturers to have them use their products.
5. Threats of Substitute products
The features of a personal computer has make it a necessity for many businesses and individuals as it taken many functions away from other products to become a substitute for products such as television, calculators, newspaper, fax machine and so on. However, substitutes of computers do not have as many features and capabilities as a personal computer. Hence, threat from substitutes is moderate in the personal computer industry.

Other Papers Like Porter's Five Forces of Computer Industry

Hieneken Porter's Five Forces Essay

1259 words - 6 pages A. Competitive Environment – Porter’s five forces The global beer market is growing around 36% year on year, however Chahal, (2013) states that sales in the UK beer market are decreasing by 4.8% year on year, forcing the industry to invest in more advertising to stem the flow. According to WSTA, (2013) there are 204,684 licensed premises in the UK and around 26 million people visit regularly on-trade premises. However one of the

Mar-301 Wa1 Porter's Five Forces Model

1622 words - 7 pages | | Written Assignment 1 Frantisek Dzuno 2012-10-MAR-301 Part A Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter's Five Forces Model to discuss that industry's competitive forces and their relative influence. The domestic airline industry has generally been characterized by very high competition and low profit margins. To understand the position of the economic climate in this

Porter's Five Forces Framework for Reliance Mobile

785 words - 4 pages Porter's five forces framework for reliance mobilefgfgfgfdgdfgdfg gfdgfdgdfg fdfd bdfb vbd bv b vb bd bb bbdggdhgfggggggggggggggggggggggggggggggggggggggggggggggggggg ggggggggggggggdddddddddddddddbg bgbgbgb bg bg bg bg bg b gb gbg bg g bg bg b gbg bg bg b g bg b g bg bg bg bgg bg b gbg b gbg bg gg bg bg bg b gb gb g g bg bg b gbg bg bg g gbgbg bg bg bgbg bgb g bg

Five Forces Model of Airline Industry

1235 words - 5 pages Five Forces model of Airline Industry Air travel has changed the way people live and experience the world today. The airline industry is a strategic sector that plays a fundamental role in the globalization of other industries since it promotes tourism, world trade, foreign investment and, therefore, leads to economic growth. However, all airlines within the industry operate in a highly dynamic environment where various legal, social

Five Forces Model of Airline Industry

1644 words - 7 pages Centre. Refer to Subject Guide for further instructions on completing assignment. Any queries on the assignment should be directed to the On-line tutor. You will also be able to access other student enquires and replies – your problems or difficulties may be others! Assignment topic Undertake a market analysis of an industry. Use Michael Porter’s ‘Five Forces Competitive Framework’ as the basis of your analysis. Clearly indicate in your

Five Forces Analysis In The Pc Industry

303 words - 2 pages Five Forces Analysis of PC Industry Threats of Entry The threats of new entrants in the PC industry are low in the U.S. market. The advanced technology is required to make and design PC. The US PC market was dominated by a few big names in year 2007, for example HP, Dell, Apple, and they have their own differentiate products. It is thus hard for new competitor to break into the established brand and customer loyalty. Each firm has contract

Porter's 5 Forces Model of Inditex Group

627 words - 3 pages 2.3 Porter’s 5 forces Model 2.3.1 Threat of new entrants The apparel industry has very low entry barriers. Entering the market does not require huge amount of capital. The setup can be as simple as a person selling his own designed apparel online which only required relatively low skills level. In fact, the fashion retailing is a diversified market with numerous single shop retailers, local chain stores, international fashion chain stores

Five Forces Analysis of Fiat

1148 words - 5 pages The industry analysis framework we have chosen to analyse the car industry in Ireland is the 5 forces framework by Michael Porter. Rivalry â†'between firms them selves. The various players in a particular sector or niche who are trying to do the same things. They are constantly jockeying for position and trying new things out, (product and process innovation) in order to develop a strategic edge and hence a stronger position in this

Porter Five Forces Analysis of Bengal Meat

913 words - 4 pages Assignment on Porter five forces analysis of Bengal Meat Submitted To Dr. Mohammad Sakhawat H Bhuiyan Assistant professor, USB | University of Liberal Arts Bangladesh. Submitted By Name | ID | Pervej Molla | 112011148 | Date of Submission: 14/12/2014 About Bengal Meat: Bengal Meat Processing Industry is the export oriented world class meat industry. They produce safe healthy meat and meat products that are of the highest

Report to: Porter’s Five Forces of Starbucks Corporation

1193 words - 5 pages Report to: Starbucks Corporation Abstract In this essay, an analysis will be provided to show the relative importance of each of the Porter’s Five Forces for the strategic position of Starbucks - an American global coffee company, in its coffee house industry compared to that of Costa Coffee and Café Nero Introduction Starbucks as a global coffee company has strong position in its industry, there are however variable external factors

The Role Of Computer Generated Imagery In The Movie (Film) Industry

895 words - 4 pages The Role of Computer Generated Imagery in the Film Industry Computer Generated Imagery is the special effects used in motion pictures to create a visual depiction of an illusion that can not be easily created in real life. Directors of major motion pictures have been using these technologies since the early days of the personal computer. Early on, when and special effects were in their beginning stages, it was difficult to make efficient and

Related Essays

Wine Industry Porter's Five Forces

2878 words - 12 pages Porter’s Five Forces Wine Industry Contents 1. Bargaining power of buyers………………………………………………………………………….1 2. Bargaining power of suppliers………………………………………………………………………2 3. Rivalry between existing companies………………………………………………………….…4 4. Threat of new entrants………………………………………………………..……………………….5 5. Threat of substitutes…………………………………………………………………………………….6 6. References………………………………………………...……………………...…………………………8 1

Porter's Five Forces Analysis

1823 words - 8 pages Five Forces Analysis Introduction (1) • Devised by Michael Porter • It a framework for the analysis of the structural factors that  shape competition within an industry • The five forces: • Determine the profitability of an industry • Assess how attractive and potentially profitable is an industry Introduction (2) • This is a framework for understanding an industry or an  organisation’s position with respect to the forces operating

Porter's Five Forces Essay

1183 words - 5 pages PHARMACEUTICAL INDUSTRY I begin with discussing how Michael Porter’s five external environmental forces threat of entry, threat of rivalry, threat of substitutes, threat of suppliers, and threat of buyers affect the pharmaceutical industry as a whole. The pharmaceutical industry consists of firms that develop, patent, and distribute drugs. This industry has important economies in research and development (R&D), also, the product is

Porter's Five Forces Essay

1963 words - 8 pages  Porter’s 5 Forces- Textile Industry NAICS code: 313310 SIC code: - 2231 Olga Bosovik NAICS code: 313310 SIC code: - 2231 Textile Fabric Mills→ Establishments in the textile mills industry are primarily engaged in manufactures a variety of fabrics, thread, yarn, textile bags, canvases and curtains and linens. I. RIVALRY AMONG EXISTING FIRMS· Concentration of companies is low in this industry