Porter’s Five Forces Analysis of Hewlett Packard (HP)

Hewlett-Packard is categorized in the Diversified Computer Systems industry of the Technology sector. Within the Computer Systems industry Hewlett-Packard has many high profile competitors such as: Canon, Dell, IBM, Apple, and Cisco Systems. The Computer Systems industry contains a large range of products including but not limited to: desktop computers, personal notebooks, printers, scanners, cameras, and different software programs. Most companies, such as Dell, Apple or Gateway, tend to be limited to a small product range. Compared to other industry competitors, Hewlett-Packard has a wide variety of consumer products. This gives HP a competitive advantage in the consumer market due to their brand name coverage in the technology industry. Hewlett-Packard offers desktops, notebooks, handhelds (pocket PC’s), monitors, home networking, televisions, digital photography, printers and printing supplies. Hewlett-Packard does not specialize in just one product line. With new technology innovations, some of their previously lesser known lines have grown to be some of their largest. In the past five years, Hewlett-Packard’s imaging and printing division has grown substantially due to the popular home photography printing.

Porter’s Five Forces Analysis Competitive Force 1: Rivalry among Existing Firms

Competition among existing firms is one of the biggest threats for Technology Industry companies. There are many large companies with a strong foothold in the technology industry, making each competitor’s revolutionary idea a factor in the consumer’s decisions. In the past ten years, the technology industry has grown exponentially. The size, quality, functions and appearance of all technological devices and software are continually improving. A good example of the technological revolution is the ever changing photography world.… Read the rest

Starbucks Porter’s Five Forces Analysis

Starbucks Coffee Company’s success in the coffee business echoed resoundingly across the globe. Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,635 stores in 49 countries, including 11,068 (6,764 Company Owned, 4,304 Franchised) in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks marketed itself as the “Third Place” – a place where people can go aside from home and the workplace. The rapid growth of Starbucks has become a success story in the business world and many people are bewildered by the company’s business strategy.

Porter’s Five Forces Analysis of Starbucks

Michael E. Porter provided a framework that models an industry as being influenced by five forces. The Porter’s Five Forces analysis presents a clear view of the external conditions and the contending forces within a specific business industry. It also allows strategists to create a strategy in order to gain competitive advantage or sustain the same for a longer period of time.

Industry Rivalry

The dynamics of the industry rivalry within the specialty coffee industry has changed dramatically since 1987.… Read the rest

L’Oreal SWOT Analysis

Prior to the establishment facial cosmetics, L’Oreal can be identified as a hair-colour formula which has been introduced by a French chemist known as Eugene Schueller in 1907. It was then known as”Aureole”. Schueller formulated and manufactured his own products which were sold to Parisian hairdressers. It was only in 1909 that Schueller registered his company as “Societe Francaise de Teintures Inoffensive pour Cheveus”, the future L’Oreal. Scheuller began exporting his products, which was then limited to hair-coloring products. There were 3 chemists employed in 1920. In 1950, the research teams increased to 100 and reached 1,000 by 1984. Today, research teams are numbered to 2,000 and are still expected to increase in the near future. Through agents and consignments, Scheuller further distributed his products in the United States of America, South America, Russia and the Far East. The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal started to expand its products from hair-color to other cleansing and beauty products. The L’Oreal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Such includes hair colors, permanents, styling aids, body and skincare, cleansers and fragrances. Indeed, the L’Oreal Group have reached the peak that all cosmetic brands sought after. Many factors contribute to the success of the Company. Since L’Oreal was known to be France’s leading beauty company, it was international presence was so limited that many believed and had a conception of Parisian beauty as being expensive and high culture.… Read the rest

Competitive Analysis of DELL using Porter’s Five Forces Model

Dell Company was founded in 1984 by Michael Dell. It is the world’s largest direct-sale computer vendor; Dell Inc. is now also the leading seller of computer systems in the world, capturing a global market share of more than 15 percent. Dell markets desktop personal computers, notebook computers, network servers, workstations, handheld computers, monitors, printers, high-end storage products, and a variety of computer peripherals and software. In this article we will use Porter’s Five Forces to analysis Dell’s great success in the industry.

Force 1: The Degree of Rivalry

The PC industry consists of a number of companies; hence the threat from industry competitors is high. Due to the product being highly standardized and shifting costs between brands is low, there is fierce competition which leads to lower margins and profitability in the market. The PC industry can be described as a high competitive industry. For Dell the main competitors are IBM, Apple, HP, TOSHIBA, Gateway etc. Dell uses several strategies to reduce the competitive rivalry between existing players.

Firstly Dell differentiated its sales from other competitors. Dell used the direct sales strategy since 1984. To sell PCs directly to consumers, by passing retail stores and system integrators and offering limited customer support but dramatically lower prices. For years, that direct, low-cost sales model worked perfectly. It allowed Dell to make high margins while selling computer gear for less than its rivals. As a result, it now holds a leading 17.9% share of the world PC market and has grown much faster than competitors Hewlett-Packard and IBM.… Read the rest

SWOT Analysis of IKEA

Swedish company IKEA is the world’s largest furniture retailer since the early 1990’s. It sold inexpensive furniture of Scandinavian design. The company operated in 55 countries with a workforce of 76000. IKEA offered nearly 12000 items to the home furnishings market worldwide. It sold a wide range of products including furniture, accessories, bathrooms and kitchens at 186 retail stores in 30 countries across Europe, North America, Southeast Asia, Middle East and Australia. IKEA is well known for its exclusive model, low price, wide range of product and flat packing. IKEA’s success was recognized to its vast experience in the furniture retail market, its product differentiation and cost leadership. The company sold its furniture in kits, to be assembled by the customers at home. In addition to furniture, IKEA also sold utility items such as utensils, hooks, clips, stands, etc. IKEA’s founder Ingvar Kamprad (Kamprad) had built an international furniture chain of more than 250 stores in Europe, Africa, Asia and the US. The biggest sales countries are Germany, USA, France, UK and Sweden. IKEA held a market share of not more than 10% in the markets in which it operated. In spite of this, it had been successful in almost all countries, because of public awareness of the IKEA brand.

SWOT Analysis of IKEA Strength

IKEA is a highly known brand attracting key demographic customer groups.The IKEA business model is unique in its construction and execution with little direct competition on a like for like basis. Success has been driven from the price architecture offering value to the customer in innovative but functional products.… Read the rest

Ansoff Matrix Analysis of Toyota

Toyota is the most leading Japanese automobile company. By creating more innovative car design and spending billions dollars in advertisement a year, Toyota has appeared in the eyes of many auto consumers worldwide. By producing high quality vehicles at affordable prices, Toyota has built its reputation globally. Toyota has reduced their prices as compared to other automobile makers. Toyota believes that the role of purchasing should be long term at the lowest price and no compromise on the production of quality products. Normally, companies do not want to cut their targeted return and they follow the strategy which is formulated in to the cost + profit = selling price. But Toyota takes a slightly different strategy which is formulated in to the price-cost=profit. Strategic management has a direct impact on its business in all organizations. That’s why Toyota has become leading company in auto industry because of the attractive strategic management policy. Now, Toyota plans to build training centers in different parts of the world, where they can easily train their new workers and managers how to design new cars and assemble them. Toyota is constructing more new factories. Although, it has already plants in 27 countries. When Toyota enters in US, everyone believes that this company will not be able to run a successful business. But, at present Toyota is leading in auto companies worldwide because of its strategic management planning.

Ansoff Matrix Analysis

Ansoff matrix is a four-point grid showing the relationship of a company’s products with its market and the various options the company can take as it charts its course.… Read the rest