Porter

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Threat of New Entrants: MEDIUM The quantity of capital that is required to be part of the computer industry including the current established brands, economies of scale and access to distribution channels, makes barrier to entry relatively high. What it keeps raising the entry level is the way current companies enjoy the demand side attributes in which consumers prefer to purchase technological products from the biggest and most reliable companies. Nevertheless, some factors that make the entry barrier lower for small starting companies is the cost of client switch in which PCs are open systems that can be manufacturer by any third party company. Government does not restrict any type of the entry to the consumer technology market and the current big companies aren’t showing any defensive action against new companies. The Power of Suppliers: MEDIUM Most of the companies within the consumer technology industry rely on either manufacturing its own parts or buy different type of components from different distributors to build their product and sell it on the market. Although, one of the things that most computer manufacturers do not have is the ability to create one of the vital parts of a computer, the Central Processing Unit or also named known as a CPU. The only two suppliers that can provide the CPU required in every computer in the market are Intel and AMD in which Intel dominates around 65.3% of the market share followed by Qualcomm, Samsung, and then AMD with merely 6.4% of the market share. Although Qualcomm and Samsung are into the mobile device market, the domination that Intel has in the CPU market gives it a high bargaining power over other big tech companies. One of the most essential parts in building a computer i... ... middle of paper ... ...oks that is going the same trend in 2014. Also, the companies suffer from price competition meaning that the highly fixed cost of the industry makes competitors to produce in bigger quantities so they can sell it and distribute cost for more units. And when that happens, it forces competitors to reduce their prices close or equal to their mean cost. Stakeholders: LOW The current major stakeholders that are investing within the industry are environmentalist and e-waste companies in which there purpose is the dumping of a total of 47.4-million computers, 27.2 million televisions, and 141 million mobile devices annually into landfills. Programs such like these are collaboration with the big companies such as Hewlett-Packard, IBM, and Dell. Their purpose is to start up a computer-recycling program that will help recycle their products for a fee of $10 per item.

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