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- Economies of Scale, Product Differentiation and Brand Identity
- Presence of Substitute Inputs and Importance of Volume to Suppliers
- Brand Identity, Pull Through, and Price Sensitivity
- Growth of Foreign Competition and Industry Growth Rate
- Key Factors Attractive Unattractive
- Total 345 155
ConclusionCritical Success Factors Socio-economic Forces - Standardization of communication protocols in the industry are a significant hurdle. While these hurdles affect all companies in the industry; a successful company will need to comply with the Interoperability Group for standardization. Economies of Scale, Product Differentiation and Brand Identity - The ability for a company to achieve economies of scale quickly is important for success in this industry. A company must quickly differentiate itself with proprietary software and establish brand identity in the mobile device segment. Presence of Substitute Inputs and Importance of Volume to Suppliers – Entrants in the mobile device industry must be aware of the supplier power with the chipset and circuit boards. Establishing positive forward looking relationships with these suppliers is important for success and weighted heavily in the analysis. The importance of volume to suppliers, whose business would not be sustainable otherwise, is important in balancing the relationship which must be established for both buyer and supplier to be successful. Brand Identity, Pull Through, and Price Sensitivity – Establishing very quickly Brand Identity is a key success factor in this industry and subsequently pull through. This will lead to tolerance in price sensitivity with buyers which will be necessary to maintain profitability and further innovation. Growth of Foreign Competition and Industry Growth Rate – Surveillance of the industry growth rate is key to responding to changes within this industry. The climate exists where foreign competition can easily usurp market share and most be monitored to insure competitive advantage in technology, brand identity, and pricing. Apparently you didn’t understand what was expected here. Only 2 or 3 CSFs. CSFs are those factors that can be used to predict success or failure. What you have here is more of a list. Now, which are truly critical? Since economies exist, I would suggest efficiency. Since brand identity is important, that can be another. Then, reading between the lines, R&D would be a 3rd. You have to fix this before doing the firm paper. Prognosis The following Table summarizes the decision matrices for the industry utilizing Porter’s strategy.
Attractive = 69%, Unattractive = 31% According to our decision matrix, the mobile phone industry is attractive to enter. However, the firms have to be cautious about suppliers with respect to presence of substitute inputs, impact of inputs on the cost or ability to differentiate, and access to Capital; and very cautious of rivalry with respect to growth of foreign competition, corporate stakes, and degree of concentration. Prognosis for this industry is fair. The future growth for this industry is demonstrated by the industry growth rate, the price sensitivity, potential economies of scale, and the importance of volume to suppliers. This industry has high barriers to entry; therefore, there will be fewer firms willing to enter. Consequently, most of the market is dominated domestically by approximately 5 large companies. Due to absolute cost advantage due to patents and intellectual property, working capital requirements where only one fifth of sales are contributing to fixed costs, and economies of scale that allow production of each device to occur at a lower cost, the industry is attractive to enter. The industry has very little impact of substitutes because by definition, the desired characteristic is mobility and functionality. This makes the industry very attractive. The mobile phone industry has significant attractiveness in its power over suppliers. The supplier concentration, the differentiation of inputs, the importance of volume to suppliers, and the access to labor contributed significantly to the attractiveness. In evaluating buyers in the industry, the industry again appears attractive due to the lack of threat in backward integration, the presence of pull through, the brand identity of buyers, the price sensitivity, and the price to total purchases. The mobile phone industry does have a balance in rivalry. The industry is unattractive because of the degree of concentration, the diversity among competitors, the presence of intermittent capacity, the growth of foreign competition, the corporate stakes present, and the exit barriers that exist. The industry is attractive with a great industry growth rate and fixed costs to value added presence. The current climate of rivalry made the industry unattractive. This analysis concludes that the industry is attractive if the critical success factors are kept in focus and balanced against the unattractive aspects of the industry. Directory: mgmt mgmt -> Company timeline mgmt -> Virtual campus school of business mgmt -> Techniques of Supervision Fall 2008 Professor Isler Assignment #1 Download 273.06 Kb. Share with your friends:
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