It also offers a wide range of services that includes advice, guidance, technical design, product sourcing, implementation, support and project management. At present, company has long time business dealings with over 1,500 customers of different types and sizes.
Supplier Power: Softcat is a reseller and relies on its suppliers for input. Softcat has 57 suppliers that supply unique product of its own and as such has some degree of strength and control over the company.(“What we do”) Softcat cannot just switch from one to another like switching from IBM to HP because of customer’s needs. Supplier power is dealt with much difficulty because it is easy for suppliers to drive prices up.
Bargaining power of Buyers. Buyer power is high because of the importance of each individual buyer to the business such that it is easy for them to drive prices down. Buyer can easily switch from Softcat’s products and services to someone else, so they are able to dictate terms.
Competitive Rivalry. The IT industry has many competitors that offer equally attractive products and services. Most likely they also get their inputs from the same suppliers of Softcat because there is no exclusive contract with suppliers. Softcat have little power in the situation because suppliers can go to other resellers if they don’t get a good deal from the company.
Threat of Substitution: Softcat is affected by the ability of customers to find a different way of doing things from what company offers. For example, they