PORTER’S COMPETITIVES FORCES

Microsoft and AMD are the most popular and well known companies that manufactured computer and pc gadgets. Although they are major in the field but they cannot escaped from the challenge of the competitive market situation. There are the examples that the companies have to face to be the best among them.
1. The threat of entry from the new competitors.
Now a days, many new companies growth in the globalization and technology world. Many new products are sold in the market even though it has same function, quality and design. So, it has to compete each other to survive with the products that have been a while in the market. For example, Microsoft has to improve their ability to comete with AMD, but both of them must compete with the other new brand.
2. The bargaining power from the suppliers.
The source and material are important to make a product but suppliers always change it prices according to the market price. For example, AMD is more cheap than Microsoft. The price also affect from the situation of the world economy that is never constant. So, the manufacture companies must be smart and careful to make a decision before dealing with the suppliers.
3. The bargaining power from the customers.
Customers are the main thing in selling products. Some of the customer want the most powerful performance of the product. Remember, customer always right. So, to be the most trustful product, it has to fulfill the customers need. Most customers do not search for the famous products in the market but they will find the products that are satisfy with their need. Normally, customer will persuaded by the advertisement of the product.
4. The threat of substitute product of term`s.
Price of the products cannot change so frequently. It will affect the customers trust to the products. The price must suitable according to the products. Most customers will search for the cheapest products in the market but has the same function and quality with the other. For example, AMD provided the cheap price of motherboard than intel.
5. The rivalry among exists firms.
Many products in the market have the same function which make the customers cannot choose the better products. So, the manufacture companies has to upgrades, and make it as their trade mark to maintain their products as the most reliable in the market.

In brief, as a big company in this industry we have to makes a strategies by using this five Porter’s competitive force model. This model will helps and shows you the best way to become a very successful company in the world.