Five Forces Analysis In The Pc Industry

Rivalry: (High)
There are five biggest PC manufacturers-Hewlett Packard, Dell, Lenovo and Acer and apple. None of them dominates the market. Therefore, the PC industry is not highly concentrated.
The PC manufacturers focus on the reduction of cost rather than differentiations of the products. By 2011 PC manufacturers’ net profit margin was 5%(excluding apple). The low profit margin causes the intense competition among the PC manufacturers.

The growth of the PC industry grows slowly, because the appearance of the tablets. This limitation of growth will lead to intense competition as well.
Barrier to Entry (moderate):
The Economies of scale is large. The fix cost spending on R&D, selling and marketing is high. Therefore, increasing the production of PCs will reduce per unit cost of the products. Furthermore, large economies of scale require intensive capital investment
The PC industry has already entered the stage of maturity, meanwhile, the production differentiation is low and customers are more sensitive to the price. However, without minimum effective economies of scale, it is hard to lower cost. Thus, the price will be higher than its competitors.
The big PC manufacturers have established strong relationship with it distributors, which make it difficult to access to the distribution channels.
Buyer Power (weak to moderate):
Home consumers represented the biggest segment of PC industries. They are sensitive to the price, but not highly concentrated.
Suppliers Power (Moderate):
There are two major suppliers of hardware in PC industry. One is Intel and the other is AMD. Though they are highly concentrated industry, but they compete with each other for the market share. The buyers always choose the cheap ones to lower their cost, which limits the power of suppliers.
Microsoft is the dominant supplier of software and its OS, therefore, they will exert some pressure to their buyers.
Substitute (High):
Smart phones and tablets are the substitute of the PC. They erode the market share of the PC. They are increasingly functioning like computer.
Another substitution is advanced game devices, like Play station and X-box. Consumers can watch the TV and surf the web and play games online.

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
Five Forces Analysis In The Pc Industry
Hire Writer
myhomeworkgeeks (28431)
New York University

Hire an Expert to Help you

Hire Verified Expert

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Have a homework question? Get help from verified tutors now!

Are You Looking For Assignment Help? We Can Certainly Assist You