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In delineation, brand awareness is the magnitude to which consumers are able to easily remember the brand when they opt for a product. According to research undertaken about 50 percent of consumers are able to identify the Apple brand whereas 25 percent of the consumers are able to acknowledge Samsung products. This indicates that the capability of consumers to ascertain different brands in the smartphone industry (Eom and Cho, 2015).
Degree of switching costs Low Medium (X High)
With respect to the smartphone industry, one of the key considerations in switching cost is the operating system. If the operating system and the app store are owned by the smartphone manufacturer, it increases the switching costs. The degree of switching costs are high in the smartphone industry. The top two manufacturers, Samsung and Apple, which have the highest number of consumers use two dissimilar operating systems and therefore the cost of switching becomes high (Cromar, 2010).
Industry Growth Rate <0% 0-1% 1-3% (X 3-5%) >5%
Statistics show that, in the past fiscal year, there was a significant slowdown in global smartphone shipments from 27.8 percent in 2014 to 10.5 percent in 2015. In particular, the shipments are anticipated to get to about 1.48 billion and later expected to grow to 1.84 billion by year 2020 (Framingham, 2016). The forecasted growth rate in the worldwide smartphone industry was 3.1 percent in 2016.
Unused Industry Production Capacity % of industry wide production capacity currently in use (X<70%) 70-80% 80-90% 90-100% >100%
The percentage of industry wide production capacity that is presently in use is less than 70 percent. This can be perceived in the recent entry and growth in production by Chinese smartphone manufacturing firms. Companies such as Huawei, OPPO, Vivo, Lenovo, and Xiaomi have entered the market and increased the production capacity. This shows that the production capacity is nowhere near being utilized (Wu, 2016).
Degree to which forms have high fixed costs or products have high storage costs or are perishable…
Market Selection & Five Forces Strategy Tool The Intensity of Rivalry The smartphone manufacturing industry has a high intensity of rivalry based on the rivalry strategy tool. This is because there are many companies that manufacture smartphones and they are all competing to increase their market share of the smartphone industry (Gehani, 2016). The smartphone industry is growing with each passing day making the industry competitive and manufacturers have to ensure that
Strategic Advantage Introduction and Description of the Problem Tesco is the market leader in the UK supermarket industry, with a share of 28.8% as of the summer 2014 (Statista 2014). Other major firms in the industry are Asda, Sainsburys and Morrisons, but the industry overall is highly fragmented. Most firms in the industry compete in the mainstream segment of the market, including Tesco. Few major players operate with a premium platform. The
Net, 2006). The power of buyers is the impact that customers have on an industry. In general, when buyer power is strong, there exists a market in which there are many suppliers and one buyer. Under such market conditions, the buyer sets the price. Buyers are strong if there are a few buyers that take up the entire market share, and are weak if the product producer can take over
Strategy Order Organizational Effectiveness & Strategy in Darden Restaurant Group Darden Restaurant group is the world's largest company-owned and managed full-service restaurant company which includes Red Lobster, Olive Garden, Bahama Breeze, LongHorn Steakhouse, Seasons 52, and The Capital Grille. Since 1995, Darden Restaurant Incorporation has been in operation, and the name Darden came from William Darden when he found and opened their first Red Lobster, which is a seafood restaurant, in
Strategy -- Rulers, States and War It is very difficult to look at the history of humanity and define a number of common, yet intangible philosophies of action that seem to be part of the overall human condition. One of these intangibles is the human capacity to produce both incredible beauty and horrific evil -- both of which occur during war. In fact, we may ask -- what is war?
Others feel Five Forces is too cumbersome in its need for data and heavy-duty analysis and does not fit today's rapidly changing, dynamic market. So where do we go with this thought that some of today's tools may not suffice as the market moves faster and companies need these dynamic, flexible analytical tools to update their strategies? Where Is the Field of Strategy? Disruptive Innovation? Four actions framework? Factor conditions? Demand conditions?