1 Buyers: High
-In the cell phone sector there are a ton of competitors with products that are similar. With that being said, companies had a hard time differentiating between themselves. To separate themselves from their competitors, they create incentives for their customers. -High fixed costs.
2 Power of Suppliers: High
-Each of the supplier groups are highly concentrated. Resulting in few suppliers. -Large firms like Apple, Samsung, and Google (or) Android would be an oligopoly because the larger businesses have the power to control the size of price in effect would exert pressure on smaller businesses making it harder for them to enter the market or create a decent profit. A result if a smaller business entered the market as a competitor is that the larger firms would outprice the smaller firms driving them out of business.
3 Threat to New Entrants: LOW
-The technology directly grows with the cellphone industry. So, as the cellphone industry continues to grow the cost of entry is low with access to financing.
4- Threat of Substitutes-LOW
-The threat is nonexistent or even low. The closest thing to a substitute would be a pager.
5- Competitive Rivalry-HIGH-There are numerous competitors ranging from large corporations to start up companies. The only difference that these companies offer, is what are they willing to offer to consumers for price competitions, feature of their technology, services, and improvements.
E,F, D, C,
E. My father in law owns an IPhone X, and I previously owned a Samsung Galaxy and Droid Turbo. I now own an IPhone 7. There are similarities with the IPhone X and my previous phones.
-No home button.
-2 rear cameras
F. Apple uses the following:
1) Pricing Strategies-Create merchandise equal to the price the consumer pays. Competitors can’t beat.
2) Retail Outlets-They have their own stores, so they use minimum advertised price to prevent competitors from stealing and reselling their products.
3) Brand Loyalty-Have loyal customer base.
D. When I think of Apple, I think of college or a high end product. Whereas Android people come to it because of its affordability resulting in making its products a commodity, and Apple as a brand.
C. It’s hard to compete with a company that is at the top of everything that they do. They run four diverse companies: a hardware, software, services, and retail company. With all these companies they have everything at their hands, with rarely any outside assistance. This advantage saves the company money.
#3D, E, B
D. Samsung is an Android phone. Samsung is a supplier to the IPhone X. Due to suppliers to the IPhone X Samsung gets a profit of every IPhone X. Samsung sold to Apple the following:
As a supplier Samsung will earn 4 billion.
E. IOS is valuable because of all of the products that come from the Apple company. Apple is based on the iOS. Every Apple product runs off of Apple Itunes, or Apple background so the profits go back into the company due to the purchase of apps, shows, etc.
B. In 2012, Apple was awarded 930 million dollars from Samsung. Unfortunately, the judge didn’t allow Apple to a permanent injunction on Samsung. So Samsung can keep doing what they do. That same year, Samsung and Apple were banned from selling merchandise in South Korea because they copied each other.