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Competition

In: Business and Management

Submitted By sjrauch
Words 397
Pages 2
Sarah Rauchenberger
Five Forces Industry Analysis Michael Porter explains in detail the largest factors influencing profitability in any industry in the article The Five Competitive Forces that Shape Strategy and gives his opinion on what to do once they are identified. These five factors can be evaluated with respect to the Personal Computer (PC) industry based off of a 2012 case study of Apple Inc. Rivalry among existing competitors, the first and most obvious of the five competitive forces, is a strong force in the PC industry with great impact on profitability. Rivalry is high because the competition in the computer industry is very intense among very few serious competitors. The top four PC vendors (Hewlett-Packard, Dell, Lenovo, and Acer) accounted for 53.6% of worldwide shipments in 2011. Leadership in the industry has shifted numerous times, leading to slight differentiation and price competition by each company in an attempt to get ahead. Threat of new entrants is a weak competitive force for the PC industry. The presence of the four existing dominant players and significant barriers to entry deter new competitors from seriously entering the market. A new company would need to heavily invest in research and development and quickly generate brand recognition, and therefore would be unlikely to cause a large threat. Bargaining power of buyers

Michael Porter explains in detail the largest factors influencing profitability in any industry in the article The Five Competitive Forces that Shape Strategy and gives his opinion on what to do once they are identified. These five factors can be evaluated with respect to the Personal Computer (PC) industry based off of a 2012 case study of Apple Inc. Michael Porter explains in detail the largest factors influencing profitability in any industry in the article The Five Competitive Forces that Shape

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