Competitiveness in the Industry

1361 Words6 Pages
1. The smartphone business has evolved rapidly over the past few years, and has undergone some shifts in the type of market model. The three basic model types are monopoly, oligopoly and monopolistic competition. Another type, perfect competition, does not exist in practice but only in theory as a means of understanding the extreme. Perhaps in a market where ten vendors are all selling watermelons to an audience that knows its melons, you could argue that there is perfect competition, but such markets are few and far between in the West. In the smartphone industry, the competition is characterized by the operating system that the devices use. Thus, when n the industry was first evolving out of the personal digital assistant industry, there were only two main players, the Palm and the Blackberry. Apple entered the market and brought with it a whole new set of consumers to a product that was initially seen as a tool for business. Palm's popularity declined, but there were other new entrants ranging from Windows to other proprietary systems and of course to Android. Now, the smartphone industry had evolved into a state of monopolistic competition with half a dozen platforms all competing for the hearts and minds of consumers. However, the industry is once again shifting back to duopoly status, with RIM being marginalized and Apple and Google being the only two players that matter. 2. In the short run, the trend towards duopoly will continue. The two leading products have
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