Business Case Study : Smartphone Industry

1052 Words5 Pages
Case Study: Smartphone Industry in 2013 (Samsung’s Dilemma) Introduction Following years of success, Samsung comes became among the established powerhouses in the smartphone industry. Nevertheless, the success of the company has been essential in unveiling various challenges and opportunities in equal measure. These company needs to address such issues as it navigates the competitive landscape. It is valuable to note that Samsung has been able to sell more phones in comparison to the rivals such as Apple and Nokia. Besides, Samsung is a major play in the tablet computer market. External Environment Based on an assessment of the case, this report will focus on three aspects of the environment analysis: political, economic, and…show more content…
Some of the sources of competition include Nokia, Apple, Sony, LG Electronics, and Motorola Solutions. The level of competition is high because of the tendency of these operators to generate or develop similar products. Besides, these operators are well established, as well as powerful to pose a serious threat to one another. The threat of substitutes is extremely high for Samsung in the industry. This is because of the tendency of the firms to make almost interchangeable products in the industry. From the illustration, consumers have the opportunity to choose substitutes to Samsung’s products while experiencing zero cost in shifting. The industry tends to experience very high bargaining power of buyers or consumers. In such instances, consumers have the ability and potentiality to choose from a wide range of similar products by various firms in the industry of operation. Nevertheless, in the case of business-to-business markets, there is substantively low bargaining power of buyers. There proves to be a minimal threat to Samsung concerning bargaining power of suppliers. This relates to the ability and potentiality of the firm to incorporate vertical integration approach, thus, the platform towards supplying almost all the raw materials vital to making its products. Finally, the smartphone industry experiences
Open Document