Forces Industry Analysis of the PC Industry Essay - 18

Forces Industry Analysis of the PC Industry - Essay Example As stated by Yoffie & Rossano (2012), in its early years during the 1990s, the industry was dominated by â€Å"Wintel†, which was a merged form of Windows OS brand and the Intel brand. However, with the increasing demands for internet and other technology developments, the PC industry has today become comparatively open and flexible to allow new entrants in terms of â€Å"no-name clone makers†. Nevertheless, the industry is regarded to be one of the most capital-intensive investment sectors encompassing rigid legal and trade norms which restrict the authentication of new players to gain a long-run sustainable foothold. High degree of innovation requirements to mitigate competitive barriers also tends to restrict the new entrants in the market lowering the risk of entry by potential competitors (Yoffie & Rossano, 2012). The consumption pattern and the quantity demanded by the buyers in the PC industry have been changing over the past few years, especially with the rising demand in emerging global markets. The buyers of the PC industry can be categorized into five sections comprising the household, the Small and Medium-Sized Enterprises (SMEs), large industry, governmental sectors and education sectors. Even though the numbers of buyers in each segment are increasing rapidly in the industry context, the household consumers of the PC market can be identified as the largest buying group in the industry. Additionally, with the availability of only a few large brands within the industry, the growing numbers of buyers tend to have the greater bargaining power to steer the industry competition (Yoffie & Rossano, 2012).