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Tesla Case Essay

584 words - 3 pages

Analysis for the Cell Phone Industry

The mobile phone industry has numerous players, some big corporation and others medium sized firms. The mobile phone industry has revolved around hardware, software and availability of technology, among other factors. Apple is among the most popular phones in today’s cellular phone market. Evaluation of the industry requires the assessment of the Strengths, Weaknesses, opportunities, and Threats, and Porter’s forces that face the company as it seeks to conquer other markets. This analysis helps in understanding the current position of the cell phone manufacturer in comparison to the market and the competitors. Apple is a leading brand of mobile phones with revolutionary products that appeal to the global market.

SWOT Analysis

i. Strengths

• Exclusivity

• Brand recognition

• Good reputation

• Financial stability and backing

• Stable and self-developed platforms

ii. Weaknesses

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Threat of New Entrants

Apple, as well as other mobile phone companies, are facing a continuous threat of new entrepreneurs in the industry. Companies such as Motorola, Nokia, Samsung, Alcatel, Sony, and many others have effectively launched products to rival each other as well as the Apple products, challenging the dominance of the market share.

ii. Bargaining Power of Suppliers

The mobile device, as with any other electronic device, is manufactured via the process of ordering parts. Often when a supplier meets the quality of the client, there is loyalty and trust build between the involved players. The market has numerous orders for the handheld devices and the bidding all involved manufacturers do wars. Huge demand for the products might affect the cost and schedule of production, thus affecting the market.

iii. Bargaining Power of Buyers

The mobile phone market has numerous designs, models and makes of mobile phones, such that it has become a buyers’ market. The buyers are at a position where they have the power to bargain and hustle for cheaper prices from suppliers. The manufacturers are thus placed on the receiving end of bargains from the consumers. To meet the critical mass of production, the manufacturers to ensure the success of the venture must do intensive campaigns and popularization of products.

iv. Threat of Substitute Products/Services

The industry in competition is flooded with phones from different suppliers which can be termed as substitutes. The manufacturers have been recorded launching new mobile phones, improved versions of previous models offering improved services (in quality and number). Competitors follow suit and launch phones that offer similar services and [products to rival a launched product. Several products launched in the industry may have the same market niche and provide similar services thus creating competition.

v. Intensity of Rivalry among Competitors

The intensity of rivals in the mobile phone industry is vicious to say the least. The competitors in this industry have launched phones and re-launched them to appeal to the market, with the increase of rival products. Strategies such as continuous launch of new products have been utilized to dominate the mobile phone industry.

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