Porter 5 Forces
1.Threat of New Entrants. Samsung Galaxy
The threat of new entrants to the Smartphone market is mediocrely high as the market is already saturated with a lot of big competitors, each having a loyal customer base. IPhone is Samsung Galaxies most direct and strongest competitor with a very loyal customer base. The threat of new entrants into the market exists and will most likely come from already existing computer, telephone and software companies. However, the smartphone has existed for a long time now and the big companies that wanted to, have already entered the market. The threat of new entrants is not big because the market is already saturated with products. 2.Bargaining power of suppliers.
Low. Samsung is a huge company with large profits and revenue. Whichever suppliers they work with greatly rely on their business. They buy in large volume and also have strong vertical integration. As with any truly huge business such as Samsung the suppliers that they do have depend on the business of Samsung so much more than Samsung relies on theirs that as is always the case with few exceptions Samsung definitely has the bargaining power. 3.Bargaining power of Buyers.
High. Samsung’s most evident quality in comparison to the Iphone is its cost. Therefore Samsung is greatly reliant on the fact that they offer lower cost and possibly greater value. They do not have the opportunity to increase costs and since are by many viewed as being the inferior but less costly and better value product do not have much room for maneuver. They target a specific sector of the market that cannot afford Iphone’s, and therefore buyers have greater bargaining power because if the costs were the same or even close to the same it is very likely that people would purchase the I phone. 4.Threat of substitute services products.
Low. There does not seem to be a great threat to the smartphone. Although there...