1) Complete an Industry Analysis. Describe and analyze the following: a. Barriers of Entry The Apple iPhone has been in the smartphone industry since 2007. Since then, however, the smartphone industry has increased tremendously. Now, 61% of US own smartphones, out of which 40% had an Apple iPhone. The smartphone industry may be very competitive but it has certain barriers like high operating costs and high start-up costs that would be difficult for a new technology brand to get in. b. Barriers of Exit Barriers to exit the smartphone industry are very low because most of the companies in this industry have a strong brand image that can be used for other products they offer such as tvs, computers, and cameras. However, in the case of RIM (BlackBerry) their products only consists of BlackBerry’s phones and tablets, making their company dependent on their products and therefore difficult to exit the market even if they have low profit. c. Customer Buyer Power Since the industry includes numerous smartphone brands, it could be easy for a customer to switch from one supplier to another. However, most cell phone carriers offer a two-year contract; making sure customers don’t switch frequently, decreasing competition and keeping fair prices. Since the majority of phone carriers follow this, the smartphone industry has relatively low customer buying power. d. Supplier Selling Power Most smartphones companies are already part of a bigger technology industry, they purchase their supplies in large volumes; the smartphone screen has same materials for a tablet or computer screen. It also has a low switching cost therefore the supplier selling power is weak; it strengthens attractiveness and profit potential. e. Product Substitutes A product substitute for the smartphone would be a mobile phone, which is still available on the market, but the options are declining. Since the smartphone industry is growing fast, switching to a mobile phone would be taking a step back and so customers prefer switching brands. Minimal product substitutes decrease product competition and increase attractiveness. f. Competitive Rivalry The smartphone industry has an intense competitive rivalry because it has low differentiation. There are about eight big smartphone brands but only two big operating systems used by these brands (iOS and Android – make up 92.3% of Smartphone OS) which mean the hardware may change in size and color but the software will run parallel to other smartphones especially for Android phones. Each new smartphone may offer new features but since they run similarly with the previous generation it intensifies the competition, creating more rivalry and high marketing and sales expenses to attract and retain customers.
The post Respond to the 3 students’ contributions of the 6 factors of their Industry Analysis of their product challenging others’ postings; helping others understand a concept through experience appeared first on Homeworkaider.
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."
"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"
