Michael Porter’s five forces model is used to explore the competitive environment in which a product or company operates. In this case it will explore the competitive environment of Dell and the Tab Streak. The Five Forces Analysis looks at five key areas:
| New Entrants| |
Suppliers| Industry competitors and extent of rivalry| Buyers| | Substitutes| |
Threat of New Entrants
The computer industry is a highly competitive one with continuing developments. Therefore new entrants barely stand a chance. Also because of the price of a tab (around 500) people are more likely to go with big brands they ‘know’ or are loyal to brands they trust. Beside that most existing computer industries are constantly developing therefore leaving little room for new companies to come with innovations. . .
Availability of Substitutes
In the computer industry this is a very highly present. A lot of products such as a laptop, tabs or mobile phones deliver the same services and are therefore replaceable. Only if products are very specific such as for instance the drawing program; Photoshop a substitute would be hard to substitute. Things that will help tie customers to the brand or product, would be good product differentiation, lower pricing, respond o technology changes and being innovative.
Power of Suppliers
Dell’s suppliers and other suppliers of competitors do not have a high level of bargaining power, because the power lies with the big buying brands like Dell, HP, IBM etc. who request the supplies. These brands are big enough to decide to use a different supplier if they believe a supplier does not offer its product for the best possible price or if the...