The initial investment is relatively low (1.1)
Brand loyalty is average to low (1.2)
Switching costs of the market player are average. (1.3)
The threat of new competitors lowers the profitability of the market Customers bargaining power:
It is very hard for the customers to join forces and fight for their interests. (2.1) According to the modern way of life the need for computer in every work place and home is high which decreases even more the power of the customers. However, the switching costs are low (2.2) In general the customer bargaining power is low and therefore it raises the potential of market's profitability. Though, most of the companies provide "buy-backs" and price protection that lessens the chance to cash on moderately strong manufacturers position. Suppliers bargaining power
Suppliers are divided into 2 major groups: (3.1)
See the attached table (3.2) for the detailed description what parameters influence the suppliers' powers. The suppliers bargaining power is generally strong because of the big monopolies and the high importance of purchasing components and operating system, therefore it decreases the profitability of the market players. Substitute goods are different on for different market segments see (4.1) For most of the customers these substitute products cannot satisfy the needs covered by PC computers. The lack of suitable...