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Five Forces Model of Competition In order to identify and assess the strength of external competitive forces on the computer industry, Porter’s Five Forces Model of Competition was used to evaluate five factors related to external conditions: rivalry among competing sellers, bargaining power of buyers, bargaining power of suppliers of key inputs, substitute products and potential new entrants to the market. Rivalry among competitors: The main competitors in the computer hardware industry vary from large, diversified companies like IBM, Hewlett-Packard and Dell, to smaller more focused companies like Gateway. Rivalry is intense given that Apple relies on a competing operating system, competitors have large market shares, and the cost of switching to rival manufacturers is low. Moreover, Apple’s marketing strategy (“digital hub”) is easily reproduced, and has already been copied by Gateway and to some extent by Dell.
Approximate Word count = 529
Approximate Pages = 2.1
(250 words per page double spaced)
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