Competitive rivalry — HIGH 3.
The brand has remained steadfast and committed to its mission of spreading digital technology and making computer technology accessible to more and more people around the world. The evolution of mobile computing has resulted in a loss of profits and market share for the computer and laptop brands.
Declining share of computers and laptops in the market has made these brands alter their strategic course. The brand has innovated its product offerings to cater to the needs of various consumer segments. Gaming PCs, ultra thin notebooks and 2 in ones are some of; the innovations that have helped Acer retain its business and revenues.
However, the PC market is changing continuously and to keep its business in a strong position, Acer has made its foray into cloud related business. Bargaining power of suppliers: Its suppliers are scattered all over the world and a very large number of them are concentrated in China. Apart from that few of them are of significant size.
If some of the suppliers hold sole bargaining strength then it is because of their quality of raw materials and large size. In this way, Acer has the upper hand and because of its financial clout and ability to pay holds the upper hand. It has set rules and regulations related to quality, labor and environment that the suppliers are required to follow.
Moreover, the brand conducts regular audits to see that the suppliers adhere to the rules and regulations.
In this way, the overall clout of the suppliers of Acer is low. Bargaining power of the customers: The bargaining power of the customers is moderately high. The reason is that the power has shifted into the hands of the customers.
Businesses are doing everything to attract and retail customers and to engage them. Another reason which has led to increase in clout of the customers is increased competition. Higher competition means a higher number of brands are fighting for market share and the same customer base. Now every single customer matters and it is why from product quality to customer service the brands are investing in everything to remain ahead of their competitors.
Increased importance of customers can also be attributed to the higher use of online services and information. The customers have every kind of information at their disposal and can switch brands without incurring any significant costs.
Overall bargaining power of the customers remains moderately high. The threat of substitute products mainly arises from the competing brands and their products. Seen in this light there are a large number of substitutes and so the threat is high. Every rival brand is pushing the line of innovation very hard.
From laptops and PCs including gaming PCs and slim notebooks, there are substitutes for all products. In terms of price too the consumers have several options. The switching costs are not so high for a customer if he wants to buy a product with matching efficiency and quality.
All these things make the threats from substitutes run high. Threat of New Entrants: The threat of new entrants in the PC industry is low.
The level of competition is very high. The existing brands enjoy some privileges including Economies of scale which helps them produce more while investing less. A new player would have to invest a lot in infrastructure, operations, human resources and other things. Apart from the large financial investment new players also face the legal and regulatory barriers.
In this way, while the barriers to entry are high, the barriers to exit are also high.Dell Porter’s Five Forces Analysis Posted on September 1, by John Dudovskiy Porter’s Five Forces analytical framework developed by Michael Porter ()  represents five individual forces that shape the overall extent of competition in the industry.
Acer Five Forces Analysis Porter five forces analysis From Wikipedia, the free encyclopedia A graphical representation of Porter's Five Forces Porter five forces analysis is a framework for industry analysis and business strategy development.
WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to acer's five forces template.
Add your input to acer's five forces template. See WikiWealth's tutorial for help. PORTER’S FIVE FORCES ANALYSIS OF ACER COMPANY 3 competitors are in a strong position, therefore, forcing new competitors to involve in advertising to compete successfully in the market.
The porter’s five forces analysis is a very effective tool for your business. When we talk about the global computer companies, the first name and foremost name that come to our mind is Dell Inc.
It manufactures the high-quality computers, laptops, tablets, displays, and workstations. PORTER’S FIVE FORCES ANALYSIS OF ACER COMPANY 2 Porter’s Five Forces Analysis Of Acer Company Acer Company is a Taiwanese global electronic manufacturer involved in selling computer software and hardware, as well as, providing information technology to organizations around the globe.