Buyer Power For A Desktop Computer Essay

955 Words Sep 2nd, 2015 4 Pages
I am going to begin the five forces analysis with buyer power. Buyer power for a desktop computer is high because consumers can choose from many different manufacturers of desktop computers available in today’s market. For example, the brands of desktop computers we currently use at work are Dell, Hewlett-Packard, Lenovo, Sony, and Apple. Several years ago, our IT department began updating the computers in the offices and on the manufacturing floor. We currently have the most Hewlett-Packard computers because they offered the largest discount for our purchase. However, before the Hewlett-Packard computers, most of the desktop computers in our company were manufactured by Dell. Hewlett-Packard offered the company a larger discount for computers with the same specifications, and so we switched brands. Hewlett-Packard and Dell were both subject to a high buyer power, because the company was able to negotiate better pricing for the same product. Dell was unable to reduce the company’s buyer power because switching costs or loyalty programs were non-existent.
The next five forces analysis discussed is supplier power. The supplier power for manufacturers of desktop computers is low because most components are standardized and many manufacturers exist in today’s market. Desktop computer manufacturers that run Microsoft Windows software demonstrate a low supplier power towards consumers, because of the variety of computer brands available, which in turn drives the prices down.…

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