Please key findings from industry analysis into a SWOT Buyer

Please key findings from industry analysis into a SWOT.

Buyers bargaining power-medium threat

The PC industry is vulnerable against the buyer’s bargaining power. This is however a medium threat . In the past years, clients have had more alternative options to personal computer. They include tablets, Smartphones and other handheld gadgets such as IPod. These devices have same capabilities as a PC.

What’s more, the gadgets are sleek, trendier and easily available in the market. With these in mind, they have in the recent years become increasingly popular making personal computers obsolete. Therefore, for the personal computer to compete with alternative devices, it must differentiate itself. By doing so, it will also regain its market share.

Bargaining power of suppliers- low threat

In the PC industry, suppliers can be grouped into three including software suppliers, hardware suppliers and service suppliers. The core of their services and products are standardized and they compete by focusing more on creating ideal or highly advanced products at an affordable price. This is done without making attempts to differentiate them.

Therefore, companies within PC industry are in a position to switch between their suppliers with ease. It is in the hands of a company and which method it is committed to that will in the end determine whether to utilize high or low end supplier or not.

With the quality of a computer being largely determined by their application and microprocessors systems, software and hardware suppliers within the industry play a significant role in product pricing. If a company is employing a high quality method, then higher prices can be expected based on what it is paying its suppliers. For instance, OS X from Apple is one of the best PC’s in the industry and this is reflected in the price of the product.

For service suppliers, there are different services that can be offered within the industry and they include tech support, internet and repair services. These suppliers mainly focus on relational and operational performance to enhance client satisfaction. They also provide a wide range of customer loyalty programs in an effort to lock in and expand their client base, while trying to achieve a competitive advantage over competitors in the market.

New entrants-low threat

PC market is currently dominated by 5 major forces and this is likely to discourage new entrants because the forces have a large market share. Therefore, there is a huge barrier to new entrants because a company has to make a huge investment in terms of research and development to develop quality and innovative products. There is also need to counter large startup costs for customer service, manufacturing and employees.

Threat of substitutes-high threat

Smartphone and tablet industries affect sales of personal computers. They have various major players and their products offer same benefits that PCs offer. As tablets and smartphones continue to be more popular, sales of PCs tend to decline.

Laptops and personal computers currently offer unique applications and are compatible with more software compared to tablets and smartphones. However, if these gadgets attain similar features, they will be all in one ideal alternatives to PCs.

Industry competitors-high threat

Personal computer industry is facing high competition from top manufacturers. They are all fighting for powerful and low cost gadgets and with the most efficient operating system. Companies specialize in different areas to increase competition among rivals especially on pricing.

Importance of Porter 5 Forces Industry Analysis of the Pc Industry

By using the Porters 5 forces model, the global personal computer industry can be efficiently analyzed to get a better understanding of its market status. The analysis also helps it determining the success of the industry based on its driving forces. This is based on the fact that the five forces have a major impact on decision making. Business persons can therefore, use the analysis to determine whether to enter a new market or to invest further into personal computer market.

Solution

Answer:

SWOT Analysis:

Strength:

-The PC services and products are standardized and they compete by focusing on creating ideal and highly advanced products at affordable price

-They have the option to swtich easily between their suppliers whether to go for low end or high end suppliers

-They provide a wide range of customer loyalty programs to lock in and expand their client base to achieve competitive advantage over the competitors in the market

Weakness:

-Buyers bargaining power is moving towards handheld gadgets as they are sleek and tendier and most prefer donot prefer PC\'s nowadays

-Differentiation of products is less and this makes the personal computers obselete

-Personal computers are not portable and cannot be easily accessed

Opportunities:

-Industry has to make huge investments for research and development to develop quality and innovative products

-Personal computers should also be differentiated like other gadgets for sleek and tendier use

-To compete with alternative devices,Pc\'s must differentiate in a unique way to regain their market share

Threats:

-Smartphones and tablet industries have affected the sales of PC\'s and they have gained the market share because of their innovative products that are handheld and portable

-PC industry is facing heavy competition from top manufacturers and aslo from other new entrants in the market

-More substitutes has launched in the market like tablets,smartphones etc and they provide the same features like PC\'s so this has decreased the sales of PC

-Intense competition in the software products

-Customers needs and wants has changed according to the emerging technology

Business persons can enter a new market rather investing more in personal computer market.Because people need has changed recntly due to evolving technology.So lot of portable,sleek and handheld devices are launched innovatively in the market.People will prefer only the innovative handheld devices rather opting for personal computers.So it is not wise to invest in personal computer market without any differentiation or innovation in the product

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