Essay about Report

927 Words Apr 16th, 2012 4 Pages
UOIT

12
Strategic Management
Matching Dell Case
Majuran Kulendran
100367320
BUSI 4701U – 002
Word Count - 895

UOIT

12
Strategic Management
Matching Dell Case
Majuran Kulendran
100367320
BUSI 4701U – 002
Word Count - 895

Q1. The attractiveness of the personal computer industry tends to be at its growing stages as many companies were shifting towards developing personal computers for home use. Porters 5 Forces could be used to analyze the industries attractiveness in this era.
Threat of Substitutes - High In the case the threat of substitutes is quite low as the primary organizations are Microsoft and Intel. During this phase it there didn’t seem to be much competitors in that segment of the market. In terms of
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Supplier Power is also considered powerful/high if there are significant costs to switch suppliers such as PC’s relationships with Microsoft (Quick MBA, 2010).
Threat of New Entrants - Medium In technology the threat of entrants always is an option. Despite the fact that the industry is difficult to enter and is heavily based on competitors such as Dell, IBM, Apple, Compaq, and etcetera, the potential is there. These companies are consistently trying to improve themselves and create a different method to gain a competitive advantage. Even phones are potential threats as they have the technical knowledge to launch similar products (Kalpesh Agarwal, 2009). Industry concentration has increased since PC’s in its’ maturity stages ultimately making the threat of new entrants medium/moderate (Kalpesh Agarwal, 2009).
Industry Rivalry - High Industry rivalry considered to be high. Technology based companies consistently seek a competitive advantage (Quick MBA, 2010). The rivalry amongst Microsoft and
Intel in 1991 dominated 85%-90% of computers sold with the remainder being used by Apple operating systems (pg.181) (School, 1999). With such minimal competition it’s obvious why rivalry is considered high. Even Apple has increased standards so there is greater competition. When a rival evokes

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