Ba Portor's 5 Forces

Bargaining Power of Suppliers: There are two catalogs of supplier. The first one is those that made products with any sources, such as chips, disk drives. The second one is those that made products that had just a few sources, such as operating. For supplier with any sources, the prices are highly competitive. For supplier with a few resources, such as Intel and Microsoft, they are mighty in pricing.

Threat of Substitutes: The alternative technologies ranging from cell phones to TV-set-top boxes to game consoles can threaten the position of personal computers. In addition, Chromebook introduced by Google can be another alternative. The threat level of technologies like cell phone is extremely high. The latest smartphone has most function on laptops. And the level of Chromebook is just mild because it has its targeted customers.

Thread of New Entrants: The companies in PC industry has two groups as I mentioned. One group comprises the no-name clone manufacturers (or local brands) and the other groups well-known computer powerhouses (or national brands). The no-name companies are much easier to get into the PC industry because they can clone the design and allocate all hardware and software together. For Example, in China, there are a lot of No-Name companies. One of them is named Terrian. It just buys allocate advanced hardware and redesign the appearance. They does not have their technologies. However, its target competitor is Allenware. In short, the thread of New Entrants is above mild.

Bargaining Power of Buyers: In the PC industry, there are so many vendors and a variety of products and services. Therefore, the customers will take into account the price and performance and even services of products. Customers are more capable to bargain due to various selections. That is the reason why ASP had fallen to $700 roughly while the demand had increased in China PC market. Lowering the price is the best weapon to attract customers. In a word, the bargaining...