Five Forces Model

Five Forces Model:

Rivalry- Rivalry in the technological fields of products is really high. Although, the markets are ever changing, with every new technological advancement brought forth by the companies in the industry some markets have been established long enough that some variations of the products have reached maturity. The desktop market and the ipod nano are good examples of products in their mature stages. The technologies developed by gooogle with the android and the ipad by apple are on the cutting edge and trend setters. Apple leads the way in most market sectors but has battled black market versions in places like China. Apple, Acer, Dell and HP are all in direct completion with one another.

Supplier Power:

Supplier power is relatively weak in this particular industry. The companies contract a lot of jobs out of house; particularly overseas in order to save money. Very few tech companies make every part in house for their products. The fact that there are several companies in various regions of the world seems to indicate that the sub-contractor companies could be replaced if their work does not measure up to the standards of the tech companies. With all the companies and plants vying for the contracts it effectively diminishes the power suppliers hold over the tech industries.

Buyer Power:

Buyer power is weak to moderate in the technological industry. I say moderate because there are several companies competing throughout the industry which means that there are some affordable products out there. Overall customers tend to be price takers in the tech markets because they are willing to pay a premium price for the products they get.

New Entrants:

The threat of new entrants is high. It requires a large amount of capital in order to produce the type and number of products in today's