Institutional Affiliation
Strategic Positioning and SWOT Analysis of Tangelo Inc.
Porter’s 5 force analysis

  Threat of new entrants Threat of substitutes Bargaining power of buyers Bargaining power of suppliers Competitive rivalry
High     The bargaining power of customers is high. This is because Tangelo Inc. positions itself as a high-end niche company which means that only individuals who can afford to pay the set prices are targeted who are not many. Having few customers gives them the power to negotiate for price cuts.    
Medium   The threat of substitution Is medium. This is because customers may opt to use analogue music systems and VHS tapes. However, being a modern era, many people want the latest entertainment items with the newest features and Tangelo offers this.     Tangelo Inc. faces medium competition. Its major rivals are high-end companies that deal with entertainment products and they are not many in the market. On the other hand, brands such as Samsung and LG are some of the company’s big rivals in its semiconductors sector.
Low The threat of new entrants in the market is low for Tangelo. It requires a large amount of capital to become a high-end dealer in consumer and professional electronics, which makes it difficult for a person with low capital to venture. Besides, there is wide specialist knowledge in the industry which presents a barrier for entry.     Tangelo Inc. has a low threat regarding the suppliers’ bargaining power.  The company does not necessarily have to rely on one supplier as there are many companies from which they can source the raw materials for their electronics.  

Strategies to reduce forces

Force Strategies
Reduce threat of new entrants To make it harder for new entrants, Tangelo Inc. should develop strong barriers by investing more money on the audio business products to increase customer loyalty. Additionally, the company should team up with other high-end companies in the industry to form stable technology protection measures as this will boost originality.
Reduce threat of product substitutes Tangelo should concentrate on finding ways to convince customers to use their products and not return to the traditional entertainment tools. Their electronics are installed with the most recent technologies and they can feature this in their advertisements and brand promotion campaigns.
bargaining power of buyers They should focus on enlarging their base of customers since many buyers are less likely to drive their prices down. They can achieve this by offering discounts on specified number of items a customer buys to enhance customers’ reliance. Another way to reduce the customers’ bargaining power is by allowing flexibility on their prices as this will attract buyers from all the social classes.
Reduce bargaining power of suppliers Even through the threat of the suppliers’ bargaining power is not big, Tangelo Inc. should consider entering into contract with the companies where they source their raw materials. This will enable them to purchase items in large quantities and save on costs. Additionally, the firm can switch to suppliers who are cheaper.
Reduce competitive rivalry Tangelo Inc. should work on developing their brand awareness through high-impact campaigns. This will enable the company to attract more customers in the market who are also targeted by high-end electronic firms. Besides, it is crucial for the organization to constantly review their differentiation of products and carry out the necessary modifications to ensure that their rivals do not copy their ideas. Still, Tangelo can consider price cuts for their various products.


1.      Focusing on customers’ satisfaction enables the companies to effectively fulfill the needs of their buyers. This is important as it makes the buyers feel that they have purchased items worthy their money and remain loyal to Tangelo.
2.      Innovativeness is also a major strength for the company. Through it, the company is capable of offering highly differentiated products and progressively modifying their brands to match the preferences in the market.
3.      The company has positioned itself as a high-end niche actor, differentiating itself from its rivals.
4.      Deals with quality, durable, and modernized devices
5.      A loyal and wide base of online  buyers
1.      Tangelo Inc. does not possess any websites online but rather, relies on third-party collaborations for marketing.
2.      The company only targets high-end customers, losing potential customers who are from low-class.
3.      The fact that Tangelo’s remotes do not meet the clients’ expectations can make the company to lose potential and the current buyers.
1.      Tangelo can venture into mobile phones industry and other electronic devices such as televisions. It has already created a good brand presence is well-known. As such, customers who are loyal to the brand might also buy their phones.
2.      Having a strong presence in online platforms is a good chance that Tangelo Inc. can utilize to market their brand and attract more customers. They can create their own websites and social media accounts or pages instead of relying on third-parties.
3.      Expanding their business overseas is also another opportunity that the company can use to reach a wider and more diverse market.
1.      The threat of competition from other high-end niche companies and generally, the rapid expansion of electronics sector can make Tangelo buyers to switch to other brands
2.      Technology is also a threat to the company as other companies might be in possession of skill that Tangelo does not have and use it to create better electronics which will attract many customers who get fascinated with technology.