Question

For Microsoft Corporation Please provide a list of elements for each of the porters five force's Barriers to Entry 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 futureratings.

Answer 1

Ans:- There are Porter's five forces which analyse the business condition of Microsoft:-

a). Competition rivalary:- It is mildly attractive. Microsoft is involved in developing windows operating software, cloud based computing services, games, phones etc. There are competition for microsoft from apple which has develoved it's own operating software iOS. However due to ease of operation and customer loyalty, Microsoft has strong customer base.

b). Threat of new entrants:- It is neutral. Threat of new entrant is neutral for Microsoft because of cost factor. The company has developed economies of scale in software development and it can provide best value to customer at lowest price.

c). Bargaining power of suppliers:- It is mildly unattractive. In software industry, there is no need of any supplier. The softwares are developed internally by Microsoft. In hardware industry there are huge no of suppliers and there is not much space for bargain.

d). Bargaining power of buyers:- It is neutral. Buyers have lot of options to choose from like facebook, google, Cisco, yahoo etc in therms of products. However the customers who are used to Microsoft features would least likely to move.

e). Threat of substitutes:- It is mildly unattractive. The threat of substitutes is low because software and hadware products can not be replaced by other category of products.