Answer to Question #274172 in Management for Joan

Question

Identify the two most important of the Five Forces Factors that are affecting the PC market. Why?

Answer 1

Threat of substitutes:

The threat of substitute products for the Personal Computing industry has grown. The growth in mobile technology has led to decline in the demand for PCs as the consumers have great options before them in the form of portable devices like large screen smart phones and tablets that can provide same features but without the need to carry a large laptop.

Threat of new entrants:

The threat of new entrants in the Personal Computing industry is very low and it is for several reasons. Apart from the high level of investment required to build a Personal Computing brand there are other several requirements too that deter any new player from entering the Personal Computing market.