Mobile computing has revolutionized the way we do business, shop and communicate. Let’s break down briefly how mobile computing has an effect on each of the Porter’s five forces.
1. Bargaining Power of Suppliers
Mobile computing gives suppliers more bargaining power, especially with the integration of social networking. There is variation of services and personalization that is readily available with so much customer input. Considering supplier costs, development is either costly or it isn’t. If the application is extensive, supplier costs (or development costs) can be considerable. The buying industry can hinder the supplying industry in development if buyers are demanding of a more extensive application (features, etc) or are reluctant to use an upgraded version of the service or application. This would influence the costs of development, and lower stance in terms of rivalry.
2. Bargaining Power of Customers
As there are many options and avenues for buying online, customers have a lot of buying power in the mobile world. They can rate a product, service or application quickly and share their reviews with virtually anyone. Because there is a great deal of competition, buyers have an upper hand in naming a price.
Additionally, there are many avenues to shop or use a service on ther internet, and switching to an alternative site, brand or provider of a service is relatively easy to do. If a buyer does not like the eBay application for instance, they can switch to the Amazon application and test its ability to bring them what they want and need.
3. Threat of New Entrants
Competition is high when it comes to mobile applications and sites. If there is a scarcity of experienced staff to develop, this can become a threat to the business. Customers also, for the most part are very fickle, and there are a lot of factors that play into a person’s loyalty to a brand, let alone more factors when dealing with ease of use of a business’s site or...
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