|Porter's Five Forces Theory ..|
|A valid Porter quote, set limits first and foremost||..|
Among the many factors for high solvency, the most important were as follows -
- Technology mortality, tech was changing every six months, to faster processors, the small importers found themselves straddled with high unsold inventory of old products which they had to mark down and sell at cheap prices.
- Disposal of older PCs became an issue as smaller sellers were not ready to buy older machines at end of life. Small retailers found the going tough.
- Arrival of powerful tablets and smartphones, made less of less of domestic customers preferr PCs and the market shrunk to only corporate clients.
If you ask me, do all organisations do such analysis initially before they set shop,
my answer is not a sure Yes. The entrepreneurs who start the enterprise need to have a fairly good idea of the operating environment and the ecosystem before they start the venture. The Five Forces Theory consolidates on this initial awareness and reinforces the different aspects relating to the competition.