'Business Summary - Inventec'

'1. disdain its growth and size, why is Inventec non very remunerative?\nIntensity of contention a get tost quick firms: in that respect be rough firms which provide alike or equivalent products as Inventec to the market. i.e Compal, Quanta, Mitac and so on As a consequence, there is a small peak of differentiation of products. Firms get by each otherwise by its agonistic prices and consumers have moo switching cost between these brands because of their relation in functions and designs. Thus, big(p) the earn margin.\n brat of new entrants: due to Taiwans impression authorities restrictions on firms submission this ODM intentness, new entrants atomic number 18 able to tangle with the industry and get out present a challenge to the breathing firms in the market. Therefore, the append of supplies and substitutes impose a challenge to existing firms.\n\nBargaining cater of Buyers\nInventecs sales are mainly from HP and Toshiba and Inventec is afraid to s uffer these two major(ip) purchasers. Consequently, these major guests has high flocking advocate on the de termine which often lowers Inventecs mesh margins. Inventec has to accept the predatory pricing from buyer because of its limited client list. ODM industry is a very warlike market where Inventec has to reflection both inherent and external factors. Despite its growth and size, Inventec further could get low margins due to the effectual pressure from the customers and rivalrous firms.\n\n2. What are the drivers of the total profitability of the authorized Design and Manufacturing industry?\nCost leading Method\nBy achieving economies of scale during take process, this could saves and reduces costs effectively and gain high margin.\n\nBargaining strength of Suppliers\nSuppliers need to be alert on market prices to bargain with customers in say to retain higher up average profit margin and notwithstanding keeping them as long term customers.\n\nCompetitive price\nCompetitive firms will lower their prices to gain more sales volume. With all the firms competin... '