Tech Data Corporation
Threat of Substitute Products and Services-Low
A new product in the market may satisfy the needs and wants of a common client in several ways (Porter, 2008). This threatens the profitability of the industry. For example, software storage applications may act as substitutes for hardware storage devices. If the substitute product presents a value proposal, which is distinctively dissimilar to, the current offers in the industry, the threat of the substitute is said to be high. It is however said to be lower when the substitute is a poorer performance product. Customers are less likely to shift from Data Tech if substitute products are of lesser quality.
Tech Data Corporation can deal with the threat of substitute products through an increment …show more content…
The technology distribution industry experiences threats of existing competition. Through evaluating all Porter’s Five Competitive Forces, Tech Data Corporation managers can obtain a full picture of the factors that affect the profitability of the company in the industry. This analysis can help them identify winning trends in good time to help them deal with competition and also take advantage of emerging market and opportunity. This will ensure that Tech Data continues to stand at the top of the industry, bearing a strong brand name and the capacity to keep setting standards for the industry.
References
Corp, T. D. (2017, February 27). TechData. Retrieved from Nasdaq: https://globenewswire.com/news-release/2017/02/27/928102/0/en/Tech-Data-Completes-Acquisition-of-Avnet-s-Technology-Solutions-Business.html
Data, T. (2017). Tech Data. Retrieved from Tech Data Corporation: http://www.techdata.com/core.html
Porter, M. E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster.
Porter, M. E. (2008). The Five Competitive Forces that Shape Strategy. Harvard.
Richard Lipsey, A. C. (2015). Economics. Oxford Press.
A new product in the market may satisfy the needs and wants of a common client in several ways (Porter, 2008). This threatens the profitability of the industry. For example, software storage applications may act as substitutes for hardware storage devices. If the substitute product presents a value proposal, which is distinctively dissimilar to, the current offers in the industry, the threat of the substitute is said to be high. It is however said to be lower when the substitute is a poorer performance product. Customers are less likely to shift from Data Tech if substitute products are of lesser quality.
Tech Data Corporation can deal with the threat of substitute products through an increment …show more content…
The technology distribution industry experiences threats of existing competition. Through evaluating all Porter’s Five Competitive Forces, Tech Data Corporation managers can obtain a full picture of the factors that affect the profitability of the company in the industry. This analysis can help them identify winning trends in good time to help them deal with competition and also take advantage of emerging market and opportunity. This will ensure that Tech Data continues to stand at the top of the industry, bearing a strong brand name and the capacity to keep setting standards for the industry.
References
Corp, T. D. (2017, February 27). TechData. Retrieved from Nasdaq: https://globenewswire.com/news-release/2017/02/27/928102/0/en/Tech-Data-Completes-Acquisition-of-Avnet-s-Technology-Solutions-Business.html
Data, T. (2017). Tech Data. Retrieved from Tech Data Corporation: http://www.techdata.com/core.html
Porter, M. E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster.
Porter, M. E. (2008). The Five Competitive Forces that Shape Strategy. Harvard.
Richard Lipsey, A. C. (2015). Economics. Oxford Press.