Competitive Strategies in the Computer Industry

Abstract

A firm's competitive behavior is very important for its survival. Relevant stakeholders in an industry are interested in a firm's operational as well as financial performance. In order to gain competitive advantage, a firm must remain steadfast during changes it goes through over time. This is true for the computer industry as well. The computer industry has been advancing very fast and firms in the industry are experiencing fierce competition for many reasons. This study examines the computer industry in terms of Michael Porter's framework for analyzing the profitability. The authors conduct a critical analysis of the threat of new entrants into the computer industry segment, the bargaining power of suppliers in the industry, the bargaining power of buyers in the industry, the threat of substitute products or services, and rivalry among competitors in the industry. This study has implications for incumbent firms and new entrants into the computer manufacturing industry that evaluate competitive strategies in the industry.