make your own brand
“You name it!”
Laptop, a portable personal computer, became commercially available in 1975. With the rapid development of high technology, the laptop market keeps expanding, but meanwhile faces a huge challenge. Although threat from potential entries and suppliers are relatively low, competitors, buyers and substitutes bring about high threat. Sony, a famous brand in laptop, plans to launch a new strategy—“You name it!”, aiming to tailor products based on each premium customer’s need. First of all, I will use Porter’s Five Forces to analyze the entire laptop industry:
Potential entries--There is a huge barrier entering the industry. First, a large amount of investment is required to conduct research, develop products and run the company. Second, space for new entries is very limited, since products with a higher price and less innovation will have little advantage over the competition. How to deal with the brand loyal customers that have trusted the established companies is another problem.
Suppliers--In order to reducing the produce cost, most manufacturers use different suppliers for the same component. Thus, if the prices are not competitive, the suppliers risk losing out to their rivals. Furthermore, customers will not know the brand of each component, so it does not matter which suppliers the company choose if their products has similar quality.
Industry competitors--With the development of living standards, laptop becomes a commodity instead of luxury in people’s everyday lives. Laptop manufacturers keep reducing the price while bringing the best product to the customer; so fierce price competition is inevitable. Now, besides Apple, the largest competitor of Sony, Lenovo, Dell, HP, Samsung and other companies are all striving for the market with Sony.
Buyers--Customers have large bargaining power over manufacturers, since laptops nowadays are more and more similar, customers can easily switch from one
Laptop, a portable personal computer, became commercially available in 1975. With the rapid development of high technology, the laptop market keeps expanding, but meanwhile faces a huge challenge. Although threat from potential entries and suppliers are relatively low, competitors, buyers and substitutes bring about high threat. Sony, a famous brand in laptop, plans to launch a new strategy—“You name it!”, aiming to tailor products based on each premium customer’s need. First of all, I will use Porter’s Five Forces to analyze the entire laptop industry:
Potential entries--There is a huge barrier entering the industry. First, a large amount of investment is required to conduct research, develop products and run the company. Second, space for new entries is very limited, since products with a higher price and less innovation will have little advantage over the competition. How to deal with the brand loyal customers that have trusted the established companies is another problem.
Suppliers--In order to reducing the produce cost, most manufacturers use different suppliers for the same component. Thus, if the prices are not competitive, the suppliers risk losing out to their rivals. Furthermore, customers will not know the brand of each component, so it does not matter which suppliers the company choose if their products has similar quality.
Industry competitors--With the development of living standards, laptop becomes a commodity instead of luxury in people’s everyday lives. Laptop manufacturers keep reducing the price while bringing the best product to the customer; so fierce price competition is inevitable. Now, besides Apple, the largest competitor of Sony, Lenovo, Dell, HP, Samsung and other companies are all striving for the market with Sony.
Buyers--Customers have large bargaining power over manufacturers, since laptops nowadays are more and more similar, customers can easily switch from one