PRESENTLY I AM WORKING IN THE MOBILE INDUSTRY. AFTER REVIEWING PORTERS FIVE FORCE MODEL, I AM GOING TO RELATE IT WITH MY MOBILE INDUSTRY:
1) THREATS FROM NEW ENTRANTS (LOW)
the mobile industry is well established and has quite low chances of new entrants and here are some of the points which will make you clear that why this threat is low
* capital requirement is very high
* customers are loyal towards its existing brands.
* there are barriers like patents which make it difficult for new competitors
* there is always a constant requirement of innovation, that’s why new entrants are affarid to enter.
2) THREAT OF SUBSTITUTE PRODUCTS (MODERATE)
threat of substituting its product is moderate, because of following points:
* smart phones are used to communicate and to access information and its substitute can perfrom many more fuctions like social networking, newspapers etc. which increase some threat.
* example are apple and android devices.
3) BARGAINING POWER OF CUSTOMERS (HIGH)
bargaining power of buyer is so high hence product differentiation is an ideal way to add value to the customers.
* the power of customer is rising because of number of choices in the mobile telecommunication.
* bargaining power is high because of low switiching cost
4) BARGAINING POWER OF SUPPLIERS (MODERATE)
There are mainly two suppliers in this industry: hardware and software developer
* leading mobile industry has strong position when bargaining with supplier
* regarding supplier of software, there are so many open sources for mobile operating system provider, hence bargaining power of software provider is low.
5) INTENSITY OF EXIXTING RIVALRY (HIGH)
Competition is intense withing mobile companies. no matter there is very less difference in their products, they always try to differentiate their product from their rivalry in terms of applications and services.
As discussed above the forces which highly affect my industry has greatest impact because the points above mentioned. and to reduce its impact my industry has adopted following strategy:
Once our analysis is complete, now it is time to implement the strategy to expand our competitive business. at the end, Porter identified three generic strategies which can be implemented in any industry (also in your film and television industry):
COST LEADERSHIP
Our goal should be to increase the profits by reducing the cost while charging the industry standard prices or in order to increase the market share just by reducing the sales price while retaining the profits.
Differentiation
So to implement differentiation strategy, the company’s products should be significantly different from its competitors and improving their competitiveness & value for their public. It should requires both good research & development and also effective sales & marketing teams.
Focus
In oder to be successful in implementation, the company should select the niche markets where they can sell their goods. It also requires intense understanding of the marketplace, its buyers, sellers and competitors.
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