industry competition

industry competition - completely different. For example,...

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The industry for IT products is a fast growing industry, with new innovative flooding the market frequently. The major players in this industry are Apple, Dell, HP, Lenovo, Acer, Toshiba, etc. This industry has developed a high level of standardization in the PC component market leading to high barriers to entry. Hence, a new player entering into this market needs to differentiate their products or services and follow the Blue Ocean strategy. Also, this industry is dependent on Brand value which means that the customers take time to get accustomed with the new product leading to a high learning curve and making the barriers of entry high. In this industry, there are a handful of suppliers like Intel, Microsoft or AMD which manufactures Microprocessors or Operating Systems making bargaining power of suppliers high. In this industry, there is a high treat of substitutes as they are available at a very low price. For example, iPod and MP3 rule the markets today, but yesterday it was CD, DAT, and Vinyl and tomorrow the technology might be
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Unformatted text preview: completely different. For example, wireless technologies could replace the need for a physical music player. In order to counter this, Apple uses highly innovative strategies and products. The competition in this industry is very high and the companies differentiate themselves either on the basis of innovation, like Apple or low costs, like Dell and Lenovo. In fact, the biggest threat to these companies is the very high level of competition in the technology markets. Being successful in this industry attracts high level of competition, and Apple works very hard on R&D and marketing in order to retain its differentiated competitive position. The bargaining power of the customers is low since they are not concentrated and the switching costs are very high which discourages the customers from buying similar products from a different supplier. Reference: Apple Web Site Reuters Report BMI Report for industries...
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