Dell vs HP Porter's Five model and SWOT analysis Free Essay, Term Paper and Book Report
Part 1: Analysis of the Computer Hardware Industry using Porters 5 Forces Framework
1. New Entrants
New entrants means that, if there is a high barriers build to protect the industries already in a market, there is less likely to be new entrants to the market, and this way it is easier for one/few businesses to dominate the industry. I think that threat for new entries for a computer hardware industry is moderate. At the moment, only low capital investment is needed to start independent stores, which is good for competition and is not a high barrier for new entrants. Computer hardware industry has a low product differentiation but brand name is strong, and customers have some loyalty to brand names. This can be seen as a high barrier for entry, but we have to remember that customer loyalty can be lost too. For now, government has regulated industry some ways and companies have copyrights for their products, such as different softwares, and this high barrier for entry.
2. Suppliers
On a supplier side there is wide range of suppliers but we have to consider key components ......
Word Count: 1386
Page Count: 5.5 (250 words a page / double spaced)
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