Question

For Microsoft Corporation Please provide a list of elements for each of the porters five force's Power of Buyer and give them a rating all equal to 1 and state if it is highly attractive, mildly attractive, neutral, mildly unattractive, highly unattractive for the present and future ratings.

Answer 1

Microsoft Corporation addresses the 5 porter force analysis to study the competitive environment in the software and hardware industry which impact Microsoft directly. These factors directly impact the customers and suppliers, they also influence the decision making of the consumers and the availability of substitutes. We are aware that there is a huge competition in the computer technology industry. Microsoft needs to analyze and address the five forces in the industry environment.

Porters Five Forces power of buyer	Elements	Rating 1-5 (1 being highly attractive, 2 mildly attractive, 3 neutral, 4 mildly unattractive, 5 highly unattractive)
Competitive rivalry or competitions	Option to switch to a competitor	4
(Currently, not many competitors are available but the organization needs to continuously innovate to remain a leader)	Aggressive competition behavior	4
	High level of diversity	4
Bargaining power of buyer	No substitute available	5
(The bargaining power of buyers is moderate to weak as the availability of substitutes are limited)	Cost of switching software	5
	The high quality of information	5
Bargaining power of Supplier	Size of supplier	3
(Suppliers have a moderate bargaining power as they have an oversupply)	Availability of suppliers	3
	Oversupply in the market	3
The threat of substitute	Lack of substitute available	5
(Currently, no substitutes are available)	Lack of performance of substitute	5
	Cost of switching	4
The threat of new entrants	Brand development cost	5
( moderate threat to a new entrant entering the market)	Switching cost	3
	Cost of developing a business	3