Case Study: Five Industry Forces
Principles of Management
November 8th, 2011
In this case study, I have chosen to use the mobile phone industry to analyze, with Apple as the main company. Using the five (5) industry forces, I will analyze whether or not I believe this is a good industry to enter and how demographics have an effect on this industry. Apple developed the iPhone which is a touch screen smart phone that operates on the Apple mobile Operating System (OS). The most recent iPhone on the market is the iPhone 4S which offers the user a dual-core A5 chip, an 8 Mega Pixel (MP) camera and Siri, an application assistant that can schedule reminders, report the latest weather conditions or can give directions to the closest financial institution. The top competitors against Apple are Google, HTC and Research In Motion (RIM). The first competitor, Google, developed the DROID which is a touch screen combination keyboard designed smart phone that operates on the Android OS. The second competitor, HTC, developed the HTC Sensation which is a touch screen designed smart phone that also operates on the Android OS. The third competitor, RIM, developed the BlackBerry which is a smart phone with a keyboard or keyboard/touch screen design that operates on the BlackBerry OS. Apple was rated as the third manufacture in the mobile phone industry (2). According to mobi Thinking, in 2011, there were only five firms that control the current market. Since start-up costs for a mobile phone manufacturer are extremely high, the threat of new entrants is low. A large amount of money must be invested into the development of new technology. Also, it is difficult to enter the market with existing firms already operating on cost and different strategies In the communication industry, some good substitutes and/or services for the mobile phone could be a Personal Computer (PC) or Voice over Internet Protocol (VOIP). Using a PC, you can email, Instant Message (IM), and...
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