Competitive Industry of Mobile Handsets in Philippines
I. Executive Summary
The local mobile handset industry is growing in the Philippines that especially cater to the Filipino culture. Investing in this industry is serious business and requires a lot of knowledge before starting. This industry analysis provides any investor the information needed if he pursues to enter the local mobile handset market. Having no awareness and simply plunging with the investment without planning will lead to an early crisis for new entrants. Any businessman knows that one of the main points for establishing a new business is to earn a profit but it will not happen if there is inaccuracy in the part of the investor. The big problems with this industry is that there are already many competitors and the investor might think of investing his money somewhere else due to fear of losing it. The solution to this is to know the advantages and disadvantages of every aspect in the industry to gain competitive advantage over the others and in turn make money. The market for the mobile handset industry in the Philippines can be classified into two: namely the shares of each brand or the shares affecting the brand. The first simply states the market share of each brand such as Apple and Samsung having their own cuts in the market. The second is what an investor should focus on because it shows not the market share of the brands but the market that makes up the brand. Examples are: the market for the raw materials, the market for different buyers, and the market for substitutes. This is what makes an investment profitable by considering all the other factors in the business. The model to use in this industry analysis is Porter’s Five Forces. Each of the five forces will show information about the things that affect this industry. The supplier power shows the market for the raw materials and how the other companies manage their supplies. The buyer power indicates the demand of the consumers and what they expect in a local mobile handset. The
The local mobile handset industry is growing in the Philippines that especially cater to the Filipino culture. Investing in this industry is serious business and requires a lot of knowledge before starting. This industry analysis provides any investor the information needed if he pursues to enter the local mobile handset market. Having no awareness and simply plunging with the investment without planning will lead to an early crisis for new entrants. Any businessman knows that one of the main points for establishing a new business is to earn a profit but it will not happen if there is inaccuracy in the part of the investor. The big problems with this industry is that there are already many competitors and the investor might think of investing his money somewhere else due to fear of losing it. The solution to this is to know the advantages and disadvantages of every aspect in the industry to gain competitive advantage over the others and in turn make money. The market for the mobile handset industry in the Philippines can be classified into two: namely the shares of each brand or the shares affecting the brand. The first simply states the market share of each brand such as Apple and Samsung having their own cuts in the market. The second is what an investor should focus on because it shows not the market share of the brands but the market that makes up the brand. Examples are: the market for the raw materials, the market for different buyers, and the market for substitutes. This is what makes an investment profitable by considering all the other factors in the business. The model to use in this industry analysis is Porter’s Five Forces. Each of the five forces will show information about the things that affect this industry. The supplier power shows the market for the raw materials and how the other companies manage their supplies. The buyer power indicates the demand of the consumers and what they expect in a local mobile handset. The
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