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    Porter's 5 Forces Model outlines five competitive forces that shape every industry: the threat of new entrants, the power of suppliers and buyers, the threat of substitutes, and the intensity of rivalry. The document then discusses how these forces impacted profitability in the personal computer industry from its beginnings in 1981 through the early 1990s, when even large companies struggled with poor performance and restructuring due to low overall profitability in the industry.

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    Porter's 5 Forces Model outlines five competitive forces that shape every industry: the threat of new entrants, the power of suppliers and buyers, the threat of substitutes, and the intensity of rivalry. The document then discusses how these forces impacted profitability in the personal computer industry from its beginnings in 1981 through the early 1990s, when even large companies struggled with poor performance and restructuring due to low overall profitability in the industry.

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    6 views5 pages

    Victor Consulting

    Uploaded by

    Parehjui
    Porter's 5 Forces Model outlines five competitive forces that shape every industry: the threat of new entrants, the power of suppliers and buyers, the threat of substitutes, and the intensity of rivalry. The document then discusses how these forces impacted profitability in the personal computer industry from its beginnings in 1981 through the early 1990s, when even large companies struggled with poor performance and restructuring due to low overall profitability in the industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 5

    Porters 5 Forces Model

    Degree of actual and Potential Competition


    Rivalry among
    existing firm
    Industry growth
    Concentration
    Switching Costs
    Exit Barriers

    Threat Of New
    entrants
    Scale Economies
    yer
    First Mover Advantage
    Distribution Access
    Relationships

    Threat Of Substitute
    Products
    Relative Price and
    Performance
    Buyers willingness to
    switch

    Legal Barriers

    INDUSTRY PROFITABILITY
    Bargaining Powers in input and output
    Bargaining powers of Suppliers
    markets
    Bargaining powers of Buyers
    Switching Cost
    Switching Cost
    Differentiation
    Differentiation
    Importance of products for cost and
    Importance of products for cost and
    quality
    quality
    Number Of suppliers
    Number Of buyers

    Personal Computer Industry


    Industry begin in 1981 when IBM announced its PC with Intels Microprocessor and Microsofts
    DOS operating system.
    By now personal computer are ubiquitous over 136 million units were shipped world wide in
    2002 alone. Despite the
    growth in the sales volume in this industry , however it was characterized by low profitability .
    Even the largest company
    in the industry , such as IBM Compaq , Dell and Apple, reported poor performance in the early
    1990s and were forced to
    Undergo internal restructuring. What accounted for low profitability ? What was the computer
    industrys failure profit potential?

    WALMARTS VALUE CHAIN

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