Porters Five Forces: Threat of Substitutes as applied to Dell Computers - Essay Example

Only on StudentShare

Extract of sample
Porters Five Forces: Threat of Substitutes as applied to Dell Computers

In Porter's model, the threat of substitute products specifically refers to products in other industries. Therefore in Dell's case, this threat does not refer to other PC products, as produced by IBM, or HP, etc. According to Porter's force definition (Porter, 1980) a threat of substitute products exists when a product's demand is affected not by the price change in a competitor's product, but by the price change of a substitute product. According to QuickMBA the "competition engendered by a Threat of Substitute comes from products outside the industry. The price of aluminum beverage cans is constrained by the price of glass bottles, steel cans, and plastic containers. These containers are substitutes, yet they are not rivals in the aluminum can industry."
One of the first issues Dell should address in order to keep customers loyal, and not looking for substitute products are its customer service and product reliability records. According to ConsumerAffairs.com, Dell is the highest among domestic computer makers in customer complaints. ...Show more

Summary

The personal computer industry is likely to remain one of the most contested sectors of the marketplace for the foreseeable future. Profitability is high as the companies reach new levels of economy of scale. As the demand continues to grow, both for new customers entering the marketplace and for existing customers to upgrade to newer, faster technology, manufacturing companies such as Dell Computers, will able to maintain a sales level which should finance both current company needs and future growth.
Author : ftoy
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Porters Five Forces: Threat of Substitutes as applied to Dell Computers"
with a personal 20% discount.
Grab the best paper

Related Essays

Business Strategy - case study of Apple Inc, and Dell Computers
In 2001 it was assumed that Apple was simply a ninch player with a captive market and that Dell was a mass producer that won market share by outstanding levels of cost competitiveness. How true is this in 2009' Your answer should show an understanding of the recent history of the firms, strategy utilized and the conditions of the market today.
5 pages (1250 words) Case Study
The Five Forces by Michael Porter
The model gives emphasis on the competitive strategy that an organization implements in accordance to their understanding of the structures in the industry and the changes they undergo (Bakos, 1998). Porter's has initiated the five forces that formed each industry and each market.
10 pages (2500 words) Essay
DELL
Dell has succeeded in its business undertakings compared to its competitors like sony, Toshiba, however there is still a way in which the company can be even more successful and this can be achieved through increased market share where the company can tap more customers from other regions.
5 pages (1250 words) Essay
The Porters Five Force Analysis
As a premium brand, the most important factors that drive competition are advanced technology, products, and premium service. Constant investment in better technology is imperative so as to ensure product improvement, differentiate between products and achieve efficiency through economies of scale.
8 pages (2000 words) Research Paper
Evaluation of SWOT, Generic Strategy, Porters 5 Forces, and the Blue Ocean Analysis in emerging markets
It will seek, ultimately, to understand company roles as they change in response to shifting market conditions. The following areas will be discussed: The need for a study of this type is clear. It is currently popular for managers and consultants to focus on Porter's Five forces for analyzing existing industry conditions, with some rounding out their analysis using standard models such as the Generic Strategy and the ubiquitous SWOT.
3 pages (750 words) Essay
Marketing for Dell Computers
As an initiative to promote and escalate marketing and sales of their Printers, Mr. Michael Dell, Chairman and CEO of the company has offered me the job of marketing consultant.
11 pages (2750 words) Essay
Porters Five of ASDA
ASDA tries to is mainly concerned about innovative developments and creative ideas. ASDA considers competitive advantage most of all. It is dominant in retail market of Great Britain: “To be Britains best value fresh food
2 pages (500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT