A Porter Analysis of the Computer Industry

Paper Summary:

This paper looks at all aspects of the computer industry, and its importance in our everyday lives. The author looks at the makeup of the current industry by examining several components - new entrants into the industry, the threat of substitutes, the bargaining power of buyers, as well as the bargaining power of the supplier's of the industry's basic materials.

From the Paper:

"After examining the supplier's and buyer's bargaining power we need to look at the competition. In this industry there are only a few key competitors. Dell, Gateway, IBM, Compaq and HP (soon to be one entity), and Apple are the main rivals in this industry, and the competition is fierce. Dell and Gateway have been the most innovative by including the "just-in-time" manufacturing to meet consumers specific needs, and HP and Compaq are going to merge, becoming the largest computer/printer producing company around. All of these computers are hard to decipher because of there high compatibility with each other (not Apple). The only thing that really sets them apart are their prices and reputation."

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