Hp Porter

Topics: Barriers to entry, Personal computer, Substitute good Pages: 2 (380 words) Published: September 20, 2010
2) Bargaining power of buyers
Bargaining power of buyers exists and high when buyers have lots of choice and these choices bring the price down. And also customer can bargain for higher quality or more services.

HP Bargaining Power of Buyer: moderate vs Dell bargaining power is high The buyer power for HP can be low since product demand is high this means that company has power to control the amount of production and also its products price. On the other hand, customers have lots of substitute. Moreover, there is not a huge difference between products which are produced in the market.

3) Bargaining Power of Suppliers
HP Bargaining power of suppliers: high same as dell
* Large number of famous suppliers for HP components like hardware, keyboards, etc while for certain ACER and Compaq the supplier use a fake components. * Microsoft standard for all PC’s and Intel standard for most PC’s. HP we can choose either * High switching costs

4) Threat of entry of new competitors
Entering to this market is not easy for new companies. It needs high modal to have our own computer company. The threat of entry into HP is moderate because the HP industry has few major entry barriers. HP Threat of entry of new competitors: MODERATE same as dell * Low investment for independent stores

* Low product differentiation
* Brand name may be a barrier to entry where HP brand is known by whole world and long sale brand and it brand is good compare to Compaq which is new brand which still new in this industry. * Low economies of scale

* No legal or governmental barriers
* Decreasing profitability shows that there is a threat of new entrants

5) Threats of substitute products or services
Threats of substitute products: moderate
HP believes in standards-based technology, which represents the opportunity to decide in the item of preference. HP tries to eliminate barriers by continuous updating processes and presenting new products to remain...
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