5 Porter's Forces

Introduction 1.Threat of new entrants 2.Bargaining power of
buyers
5 PORTER'S FORCES
Market has been increased during the
past few years in Personal Computers.
PC is the most essential and most
wanted techniques these days. Its
demand has increased day by day with
fresh changes (Asiedu, 2015). Besides
this, nowadays, PC has an uncertain
future because of new gadgets. The rise
of mobile technology and innovative
devices most of the generation
preferred small and handy devices. The
five porters analysis can help us better
to understand the competitive position
of HP computers or of industry as well.
It is the most essential and competitive
tool to determine the actual position of
the company. This also helps company
to make effective strategies to reduce
the impact of competitive pressure and
generate new competitive sources. This
a five porter's analysis of HP is given
below:
Threat of new entries in the industry is
low in case of Computers because of
the significant investment. In this PC
industries most of the customers
believe on the existing brand rather
than new brands. It requires brand
image and company existence in the
market. This sector requires huge
investment and having advanced ides
to enhance the sales revenue in
technological industry (Dälken, 2014).
Another reason of the low entrants in
the sector is new brand has to make its
foray into the industry to get good
response from the customers. With the
help of this advantage, HP Computers
has to adopt new ideas and make
existing customers happy and satisfied.
It also helps HP computers to take
advantages of competitive resources.
Overall, barriers to entry of new firms
are involved less.
Bargaining power of buyers is low to
moderate. In accordance to the market
research, the power of other players is
comparatively low and having less
consumer loyalty and brand image. This
factor helps to reduce the bargaining power
of the buyers (E. Dobbs, 2014). Besides this,
competitive advantage helps company to
build great image in front of the customers
and competitors as well. HP computers
have great techniques and superb growing
ideas for selling effective services and get
back good customer response and brand
image in the market. Moreover, HP itself is
the leading brand through which customer
cannot bargain the amount and purchase at
per the real price of the product and
services. HP provides after sales services
and customer support service to resolve the
issues of customers. There is only one
factor which may increasing the bargaining
power of buyers is that increasing the role
of mobile technologies and smartphone.
Due to this, company faces big challenges
and issues. HP responds towards providing
the best services to the buyers as per their
demands (Hatch and Howland, 2015).
3. Bargaining power of
suppliers
In the Personal Computers industry
balances are always titled in the favour
of suppliers. This threat may affect the
company in case when number of
suppliers is less. In the case of HP
computers, it has low threat of low
suppliers. It is very important for the
suppliers to maintain the good relation
with the company to maintain its ow
profit margin. Besides this, company
always approach those suppliers who
provide quality of services to the
customers. HP has strict policy to adopt
quality of services and products
through the suppliers in order to get
customer satisfaction. Moreover, with
the help of this source, company can
make competitive advantages and get
good profit margin (Johnson, 2016).
4.Threat of substitute
products
Threats of alternatives involves
moderate in this industry. PC industry
now has facing the issue of new
technologies such as mobile phones,
smartphones etc. due to increasing
demand of new devices PC industry
faces the issue and challenging. For
that, company needs to analyse the
demand and make new services or
products for their potential customers.
Moreover, it is not necessary to take
use of smartphones and tablets every
time. Buyers need to purchase PC to
handle the important works. It is
important to enhance the role of
computers instead of smart devices.
This pressure gives more challenges
and threats to the company (Mathooko
and Ogutu, 2015).
5.Level of industry rivalry
Level of competition in the market is very
high and advanced in order to make the best
services or products. The top level of
business competes with each other in this
global market. This market situation may
arise some pressure on the existing industry.
Lenovo's is the bigger market competitor of
HP computers (Pinto, 2015). Lenovo's is the
brand who proved that it is the biggest rivalry
company of Dell, HP and Apple. This
competition level has arisen in the form of
prices Because of the high pricing of products
Apple has lost his profit margin in Asian
market
REFERENCES
Asiedu, E., 2015. Developing Market as a Source
of Competitive Advantage: The Role of
Management Tools. Elixir International Journal of
Management Arts. ISSN, pp.36319-20.
Barney, J. B., 2014. Gaining and sustaining
competitive advantage. Pearson higher ed.
Dälken, F., 2014. Are porter’s five competitive
forces still applicable? a critical examination
concerning the relevance for today’s
business (Bachelor's thesis, University of Twente).
E. Dobbs, M., 2014. Guidelines for applying
Porter's five forces framework: a set of industry
analysis templates. Competitiveness
Review. 24(1). pp.32-45.