1. History & Introduction
2. Industry Analysis 2.1 Porter’s Five Forces Framework 2.2 Complementors & Strategic Groups 2.3 Life Cycle Analysis 2.4 SWOT Analysis 2.5 PESTEL Analysis
3. Internal Analysis 3.1 Resource Based View Analysis 3.2 VRIO Framework
4. Business Strategy
5. Tetra-Threat Framework
Porter’s Five Forces Analysis
Threat of New Entrants (Low) 1) High Industry Profitability (+) 2) Large fixed costs (-) 3) Economies of scale in research, chip fabrication, consumer …show more content…
Threat of Substitutes(High) While other companies do manufacture competing server/workstation platforms (such as Sun Microsystems and Digital Electronics, before the latter was purchased by Compaq), these companies only compete in a limited number of arenas. The most powerful Windows/Intel server is far less powerful than most Sun Microsystems machines, but they are also far less expensive.
Currently the threat of substitutes is high for microprocessors. Regardless, while Intel's customers (such as Dell and Compaq) might compete on a limited basis with companies like Sun, Intel's only fear of substitution comes from AMD.
Smart phones and Tablets are threatening substitutes.
ARM might be coming up a potential substitute/competitor in the future.
Businesses use complementary relationships to increase demand. Porter's Five Forces model suggests that businesses compete for the slices of one pie - a zero sum game market. There is yet another approach taken for strategy formulation. In this model, the Value Net, eight relationships are defined as represented by the diagram below.
Like the Porter 5 Forces model suppliers - rivals - buyers, there is the fundamental supplier - company - customer relationships. Added are competitor and complementor relationships with the supplier, company and customer.
A competitor usually takes away suppliers or buyers from your pie. A complementor adds