Analysis of the Cell Phone Industry

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FIVE FORCES ANALYSIS OF THE CELL PHONE INDUSTRY The cell phone industry is a competitive market and will increase continuously. The profitability of individual companies is driven mainly by their ability to develop new products, providing better service and making their products affordable for consumers. Profitability of companies is achieved also by taking advantage of product marketing, access to capital, and by inquiring the expertise to improve the cell phones. The profitability of the cell phone industry depends on the number of consumers they can attract. The profitability of the cell phone industry is dependent on the volume of consumers they can attract. The cell phone industry looks strong and competitive between the…show more content…
The only real substitute is to buy all the functions of a mobile phone in the individual products, which would not be plausible to carry all around on a person at the same time. It is hard to be replaced for a different product, since it covers so many different needs. MOST ATTRACTIVE FACTOR OF THE 5 FORCES MODEL We believe that the most attractive factor in the microenvironment of the mobile phone industry is the threat of substitutes. As we have said above, the mobile phone does not have a real substitute since it offers a huge range of services and functions in just one device, and there are no other products that can offer these characteristics. The importance of communications today, has made the mobile phone a basic need for everyone, and the possibility of being in contact with the world at any time or place is a function offered exclusively by mobile phones. Both of the reasons explained above make this industry highly profitable and attractive for potential companies. LESS ATTRACTIVE FACTOR FOR THE FIVE FORCES MODEL After having analysed all the factors we have concluded that the less attractive factor is the powers of buyers for the cell phone industry. This is due to the fact that there are a lot of choices for customers when buying a mobile phone (high rivalry). Besides, the network operators sign contracts with customers for 24 months in order

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