Five Forces Model Analysis of the Smartphone Market

694 WordsJan 30, 20183 Pages
Five Forces Model Analysis of the SmartPhone Market The Five Forces Model (Porter, 2008) provides a useful framework for evaluating the dominant competitive forces that influence the size, direction and intensity of competition in a given industry. The Smartphone industry is analyzed in the Five Forces Analysis completed in this paper, and is shown in Figure 1. Figure 1: Smartphone Five Forces Analysis Sources: (Apple, Investor Relations, 2012) (Bernoff, Li, 2008) (Lee, Kwak, Kim, Kim, 2009) (Porter, 2008) What is immediately apparent from evaluating the role of Substitute Products, Bargaining Power of Suppliers, Bargaining Power of Buyers and New Market Entrants is the speed and breadth of innovation occurring in this industry. Social networking's pervasive adoption globally is also completely reordering the supply chain for smart phone components and assemblies, hastening product lifecycles in the process as well (Bernoff, Li, 2008). Apple's continual focus on innovation and the rapid product lifecycles they have actually put the Five Forces Model into an accelerated state as well (Apple, Investor Relations, 2012). Substitute Products There are a plethora of substitute products available, from the black market counterfeits being produced throughout Asia, specifically China, to the rapid advancement of new technologies at Microsoft, Nokia and HTC with the Android operating system (Apple, Investor Relations, 2012). Substitute products are increasing the
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