Question

For Microsoft Corporation Please provide a list of elements for each of the porters five force's Avaliabilty of Substitues 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 Porter Five Forces Analysis-

1-Threats of New Entrants

• Any new entrant can enter the market with its latest technology
• This threat is highly attractive as new entrants in Business Software & Services brings innovation, new ways of doing things and will put pressure on Microsoft Corporation through lower pricing strategy, reducing costs
• Rating = 1

2 - Bargaining Power of Suppliers

• Powerful suppliers in Technology sector use their negotiating power to extract higher prices from the Microsoft Corporation
• The overall impact of higher supplier bargaining power is that it lowers the overall profitability of Microsoft Corporation
• Rating = 1

3- Bargaining Power of Buyers

• Buyers are of utmost importance
• Buyers want the best out of  Microsoft Corporation
• This is major threat

4 - Threats of Substitutes

• substitutes are not effective
• switching cost is moderate
• Rating<1

5- Competitive Rivalry

• High aggressiveness of firms
• High diversity of firms