This document analyzes NMS's competitive environment using Porter's Five Forces model. For data communication components, customers have strong bargaining power due to NMS's small market share and reliance on key customers. Supplier bargaining power is moderate as NMS produces some components internally. Barriers to entry are high due to regulatory approval needs. Competition is intense from larger competitors. For network management systems, customer bargaining power is lower due to fewer competitors. New entrants face lower barriers. Current competition is limited to a few competitors. Threat of substitutes is moderate as the industry changes rapidly, but NMS may be able to respond more quickly as a small business.
This document analyzes NMS's competitive environment using Porter's Five Forces model. For data communication components, customers have strong bargaining power due to NMS's small market share and reliance on key customers. Supplier bargaining power is moderate as NMS produces some components internally. Barriers to entry are high due to regulatory approval needs. Competition is intense from larger competitors. For network management systems, customer bargaining power is lower due to fewer competitors. New entrants face lower barriers. Current competition is limited to a few competitors. Threat of substitutes is moderate as the industry changes rapidly, but NMS may be able to respond more quickly as a small business.
This document analyzes NMS's competitive environment using Porter's Five Forces model. For data communication components, customers have strong bargaining power due to NMS's small market share and reliance on key customers. Supplier bargaining power is moderate as NMS produces some components internally. Barriers to entry are high due to regulatory approval needs. Competition is intense from larger competitors. For network management systems, customer bargaining power is lower due to fewer competitors. New entrants face lower barriers. Current competition is limited to a few competitors. Threat of substitutes is moderate as the industry changes rapidly, but NMS may be able to respond more quickly as a small business.
This document analyzes NMS's competitive environment using Porter's Five Forces model. For data communication components, customers have strong bargaining power due to NMS's small market share and reliance on key customers. Supplier bargaining power is moderate as NMS produces some components internally. Barriers to entry are high due to regulatory approval needs. Competition is intense from larger competitors. For network management systems, customer bargaining power is lower due to fewer competitors. New entrants face lower barriers. Current competition is limited to a few competitors. Threat of substitutes is moderate as the industry changes rapidly, but NMS may be able to respond more quickly as a small business.
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NMS Porter 5 forces
Bargaining Power of Customer:
Data Communication Components NMS Sell Data Communication Components OEMS and their customer are large international companies. NMS has less then 1% of domestic market and also faces competition from 20 supplier which may have a higher market share and the product is also competitively priced all these are the indication that customer have good bargaining power over NMS. Furthermore 40% of the sales of NMS in this regard comes from one customer this means that if NMS fails to accept the condition of that Key customer this will result in a significant loss for NMS
Network management system
NMS also provide Network management system to small number of customer. This system is customized according to the needs of the customer. The Market is low volume ad there are only two or three competitor so it seems that bargaining power of customer is quite low in this regard.
NMS can achieve greater market share or can raise price by improving the System quality and technology.
Bargaining Power of Supplier:
Data Communication Components NMS produces 40% of components used in it’s product and rest of the components including semi-conductor microprocessor are bought from few selected supplier. It may be the case that there are very few authentic supplier who can provide NMS good quality Semi Conductor and microprocessor. this indicates that NMS does have a good bargaining power over supplier due the fact that NMS does not switch to a different supplier when there was serious production problems due to shortage of components because of late deliveries by suppliers
Threat of new Entrants (barriers)
Data Communication Components Components that NMS provide to it’s customer require approval from government body in each country which is costly and timely. This is a barrier which prevents any new competitor to emerge because of high regulation and cost. Network management system There is no need for approval from government regarding this System. New Competitor may enter in this market if this Happens NMS market share may be reduced however NMS can Eliminate new Entrant by providing Customer greater quality System at low cost using it’s experience and Technological as an advantage
Current Competition Data Communication Components NMS has less than 1 % market share which quite low this means that NMS is comparatively smaller organization then it’s competitors. NMS faces very intense competition from 20 other international suppliers which may have better market share, NMS should focus on increasing it’s market share by improving it’s marketing strategies, sales department and Investing in Research and development.
Network management system
NMS and two or three competitor currently own the market, it is a small market with high profit margin. NMS is doing good in this part of it’s business however it should assess if any new competitor has entered the market or not this might affect NMS market share
Threat of Substitute Products
NMS operate in a high technical industry therefore technologies tend to change and upgrade hence it is very important for NMS to scan the external environment to identify and anticipate if there are any new Technology to replace the current one however small size business like NMS may have a competitive advantage in it’s ability to respond quickly to such change unlike the businesses who are large and successful currently.
