Situation Analysis( Samsung)

Because of the smartened more popular now and the technology is similar as laptop computer technology, so that were attracted a lot computer manufacturers wants a piece of the action. In the future 3 to 5 year, new smartened market entrants (such as Dell, Acre and Hawaii), which have virtually no presence in the current smartened market, will account for a much larger share of the total market, forecast to encompass more than 26 million shipments. Bargaining power of suppliers supplier group is powerful cause: it is dominated by a small number of companies and is more concentrated than the industry to which it sells.

There not required to contend with substitute products for sale in the xylophone industry, smartened is not the only one of the supplier’s important customers, smartened Just one of the product in the production line,but the smartened products are an important part of the buyer’s business. There are differentiated or there are built-up switching costs, and poses a definite threat of forward integration. Bargaining power of buyers Buyers easily switch cost with the increased of choices of mobile companies and furthermore their products are quite similar to each other; they will switch to those ho have better offering and low cost.

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Buyer might backward integrate to set up its own mobile company, therefore, causing a threat to existing companies. Since there are few and concentrated buyers and only having a few alternative buyers in the market, there industry has no choice but to negotiate with the buyers. There is a moderate diversification of producing companies. There are only few key vendors and they have pretty much marked off their territory in retail markets. Although, rivalry is extremely high and is continuing to intensify within this industry, with Samsung being the dominant player.

Jesse
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