Porters 5 forces

Porters 5 forces - Porters 5 forces Bargaining Power of...

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Porters 5 forces Bargaining Power of Supplier – High Strong supplier power - CPU manufacturers have a monopoly, as there are only two, AMD and Intel. Software monopoly from Microsoft 90% of the market Strong relationship with suppliers (Dell has a strong manufacturing relationship with Intel as many have defected to AMD due to cheaper costs involved) Strong Asian manufacturing relationships– all use same suppliers Only Two major inputs are monopolised o Microsoft standard for all PCs o Intel standard for most PCs Dell Dell has exceptional relationship with suppliers Being able to order stock within two hours and receive the order Lower cost by using JIT method and producing laptops, improved inventory costs Dell’s supply chain is superior compared to its competitors – through their factory rescheduling processes, production at factories closer to destination reducing lead time (pg4) Traceability and track-ability of products 1
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New Entrants – Moderate High capital investment for new entrants, as they need to be innovative and differentiate their products to be more appealing Low product differentiation as companies are replicating similar computers
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Porters 5 forces - Porters 5 forces Bargaining Power of...

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