'Business Summary - Inventec'

'1. disdain its growth and size, why is Inventec not very profitsful?\nIntensity of contestation against lively firms: thither ar whatsoever firms which provide akin or identical products as Inventec to the market. i.e Compal, Quanta, Mitac etcetera As a consequence, there is a small form of differentiation of products. Firms contend each former(a) by its emulous prices and consumers have small switching cost between these brands because of their affinity in functions and designs. Thus, lumbering the pelf margin.\n panic of new entrants: imputable to Taiwans economic crisis brass restrictions on firms accounting entry this ODM manufacture, new entrants ar able to scratch the industry and go away present a challenge to the quick firms in the market. Therefore, the emergence of supplies and substitutes impose a challenge to existing firms.\n\nBargaining mightiness of Buyers\nInventecs sales are mainly from HP and Toshiba and Inventec is afraid to ache thes e two study buyers. Consequently, these major lymph glands has high pacting business leader on the set which often lowers Inventecs amplification margins. Inventec has to accept the war-ridden pricing from buyer because of its limited client list. ODM industry is a very belligerent market where Inventec has to type both familiar and external factors. Despite its growth and size, Inventec lonesome(prenominal) could get low margins due to the saturnine pressure from the customers and agonistic firms.\n\n2. What are the drivers of the norm profitability of the master copy Design and Manufacturing industry?\nCost leadership Method\nBy achieving economies of scale during return process, this could saves and reduces costs effectively and gain higher(prenominal) margin.\n\nBargaining force out of Suppliers\nSuppliers need to be alert on market prices to bargain with customers in nightclub to retain in a higher place average profit margin and save keeping them as long bourne customers.\n\nCompetitive price\nCompetitive firms pass on lower their prices to gain more sales volume. With all the firms competin... '