Threat of entry of new competitors Entering to this market is not easy for new companies. It needs high modal to have our own computer company. The threat of entry into HP is moderate because the HP ndustry has few major entry barriers.
HP Threat of entry of new competitors: same as dell * Low investment for independent stores * Low product differentiation * Brand name may be a barrier to entry where HP brand is known by whole world and long sale brand and it brand is good compare to Compaq which is new brand which still new in this industry. * Low economies of scale * No legal or governmental barriers * Decreasing profitability shows that there is a threat of new entrants 5) Threats of substitute products or services Threats of substitute products: moderate
HP believes in standards-based technology, which represents the opportunity to decide in the item of preference. HP tries to eliminate barriers by continuous updating processes and presenting new products to remain successful. HP faces constant threats of substitutes or services from other computer hardware products; such as, Dell and Apple which are among top competitors. However, threats of substitute are also moderate in this industry Smart phone, Pal tops and PDA is some substitutes but these are not the major threat to computer industry. Hp Porter By mamannasrin