The meaning of buyer is an individual or a group of individual who possess the greatest authority in affecting the business world. Without any buyer, do not have any business transaction in the world. The ability of buyer is to force down prices, bargain for higher quality or more services, and play competitors against each other. Buyers for Intel include end-user home computer builders and small “PC-Clone” shops that build customized machines in most cities. Besides that, large computer manufacturers such as Dell, Gateway, and Hewlett-Packard (HP) are also buyer for Intel account for the vast majority of chipset and microprocessor purchases. Buyer power in this industry is weak because the Intel products supply a critical component to the buyer. Furthermore, most of the manufacturers the “Intel Inside” logo has been considered by most manufacturers to be too important to forgo. On the others hand, Buyer Power will increased sharply when another new option arrived, for example the product from competitor like AMD that cheaper and a bit same performance like Intel, considered by most to be inferior to their Intel counterparts.
2. Bargaining power of suppliers
The term “suppliers” comprises all sources for input that are needed in order to provide goods or services. Suppliers of raw materials, components, labor, and services to the firm can be a source of power over the firm, when there are few substitutes. Suppliers can affect an industry through its ability to raise prices or reduce the quality or purchased good and services. For the large semiconductor companies like Intel or AMD, suppliers have lack of selling power because semiconductor companies have hundreds of suppliers. Intel’s raw materials like silicon, semiconductors, and others can be purchased from a litany of manufacturers, thus affording the Intel a great deal of buyer power in selecting with whom to do business.
3. Threat of new entrant