Five Forces Analysis of Pc Industry

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Five Forces Analysis of PC Industry in the US The bargaining power of suppliers varies among different elements of the supply chain. Due to the fact that Microsoft’s operating systems are so essential to most PCs, they have a lot of power over firms in the industry. Also significant is the fact that there are few suppliers in the market that can exert a lot of control over price and quality of their product. Most firms are locked into certain operating systems, so bargaining power for those suppliers is a strong force. However, suppliers of production material for PCs have less power. There is a low cost of switching suppliers, and there are similar production inputs available which reduces firms being locked in to certain suppliers. So in this case the bargaining power of suppliers is a weak force. Overall, the bargaining power of suppliers is a moderate force in the PC industry. The fact that PCs have such a large customer base that ranges from government to business to personal use means that the bargaining power of individual customers is low. There are also high switching costs associated with switching from one brand to another, and there is also a lot of brand loyalty in the PC market. The main power that customers currently have is the ability to choose substitutes, since PC-like capabilities are now featured on many mobile devices. Ultimately, the bargaining power of customers is a moderate force that is growing stronger as non-PC technology advances. Since more and more consumer products such as smart phones and tablets are now able to perform functions that were previously PC-exclusive, increasing the number of substitutes, PCs have become less unique in some of their capabilities. These substitutes are also often more affordable than a traditional PC, and much more convenient to carry around and use on the go. While there are still functions that
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