1) Analyze the smart phone market according to the 5 forces model. For each forc
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Question
1) Analyze the smart phone market according to the 5 forces model. For each force, indicate if it is HighLowMedium and indicate why. Quote the information that you used from the article to help you make the assessment.
2) What is the strategy used by Apple and what is the strategy of Samsung? Justify your answer using quotes from the text.
3) Which areas in the Value Chain model does each of the two companies concentrate on? Justify your answer using quotes from the text.
The rivalrybetwveen the leading producers of high-end smartphones will only grow fiercer SAN FRANCISCO EVER shy about hype, on September cial-recognition technology and a dual- On the same day, Samsung, a rival 12th Apple's boss, Tim Cook, present- lens camera ed the firm's latest iPhones to a packed au ditorium in its glitzy new headquarters in smartphone-maker, held Cupertino. He made a grand prediction:its new, premium phone, the iPhone x (pro- a lowerke event in Seoul. Koh Dongjin, president of ss, an Samsung Electronics' mobile busine nounced that next year Samsung could re- imagine the smartphone entirely and launch a new design with a foldable screen, which can close like a small book. On September 15th its latest premium smartphone, the Galaxy Note 8, will go on sale, boasting many of the features offered ten"), will "set the path of tech nology for the next decade". Set to be re- leased this November, ten years after the first iPhone launched, the iPhone x has new features such as an edge-to-edge OLED screen (a thinner screen that does not use a backlight), wireless charging, fa- by the iPhone x. Both are trying to convince consumers to spend around $1,00o for their new gad- gets. Samsung's new phone will cost $960; Apple's high-end iPhone x will cost $999, 45% more than the average selling price of an iPhone in 2016. (The iPhone 8, simpler than the x and available for sale in Septem- Handset wars Smartphone revenues, worldwide, Sbn FORECAST 400 300 er Xiaomi LG Electronics Lenovo ber, will start at $699.) The competition to wow consumers has been intensely fought between Apple and Samsung Electronics for years. They claim a duopoly over the premium part of the smartphone market. Together they control around two-thirds of the global market (Apple claims 44% of smartphone 200 Huawei: Samsung 100 Apple 2013 15 17 19 20 Source: UBS Included in "Other" for forecastsExplanation / Answer
Analyze the smart phone market according to the 5 force model-
1- Competitive rivalry or competition- Both company indicates high force.
2- Bargaing power of buyers or customers- Both companies indicates high force.
3- Bargaining power of suppliers- Apple indicates low force, but Samsung indicates medium force.
4- Threat of subsititudes or substitution- Apple indicate low force And Samsung indicates medium force.
5- Threat of new entrants or new entry- Apple indicate medium force and Samsung indicate low force.
Strategy used by Apple- iphone X marketing strategy. iphone is the already the best selling smartphone on the earth. The original iphone set the path of technology for the next decade. They released this november after thw 10 years aftet the first iphone launched.
Strategy used by Samsung- samsung used the samsung mobile strategy. Samsung elelectronic mobile business announced that next year samsung could reimagine the smart phone entirely and launched a new design with a foldable screen which can close like a small book.
Value chain analysis - The two companies concentrate on te value chain model. They assists the business activities which create values and competitive advantage to the business. Both apple and samsung offer dual lens cameras, which make it easier to integrate AR function inro apps. Samsung is well hedged, its strong chip and smart phone. Apple lack this diversity but its mobile devices luxury.
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