Analysis Of The Personal Computer Industry (porter’s Five Forces)

Apple Inc. In 2015
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Apple Inc. In 2015
Analysis of the Personal Computer Industry (Porter’s five forces)
The porter's five forces is a model which has been used in analyzing the personal computer industry. The analysis is, therefore used to help develop better business strategies that can place a company into a better performing position (Ferguson, 2019). The five forces used in the model are directly applied to either place industry as competitive or non-competitive based on the level of attractiveness in the market. The five forces, therefore, include competition in the industry, the potential of new entrants into the industry, power of suppliers, power of customers, and the threat of substitute products.
In the personal computer industry, customers have become more sensitive about the power they have to purchase personal computers. It is upon companies such as Apple to respect this power and meet the needs of the customers. Affordability is a huge factor that needs to play a part in the sale of computers (Maverick, 2019). The new models are priced higher because they tend to have unique features, and hence, their prices have to go up as well, and this gives freedom to the power of customers to excel.
Competition in the industry is entirely, and hence more companies are forced to produce quality products for customers to prefer them. This is regarding the needs of a customer since they have a variety of companies and computer models to choose from (Ferguson, 2019). A company, in this case, is required to ensure that the quality of their products matches that of the customers so that they can gain more competitive advantages over the other companies.
The threat of substitute products matters a lot. Many of the personal computer companies such as apple have different types of computers whereby they ensure that their accessibility is quite reachable and favorable to many customers (Maverick, 2019). Others have gone ahead to introduce new marketing strategies whereby a customer can quickly be attracted to their product and make a purchase immediately.
Potential of new entrants into the market is an essential factor, mainly because it enhances the introduction of new marketing strategies (Ferguson, 2019). The industry is quite vibrant, and customers have to be reminded...