Porter's Competitive Strategy In The Cell Phone Industry

Porter’s Competitive Strategies Porter’s Competive Stategies can be derived from his Five Forces Analysis. Porter five forces analysis is a framework that analyzes the level of competition within an industry. It is very useful in the devolpment of a business’s strategy. The five forces is used to determine the competitive intensity of an indusstry, and therefore, identify the attractiveness of an Industry (Wheelen). You are able to see the components of the the Five Forces below: Porter’s Competitive Strategies are compose of three different competitive strategies that can be used to outperform other corporations in a particular industry that can combat the different threats that porter had created in his five forces analysis. The three …show more content…
The cell phone industry could be described as hypercompetitive. Hypercompetition is an industry situation in which there is frequent movement in the field which creates a constant disequilibrium and change (Wheelen). However, this is also how businesses in this industry are able to achieve a sustainable competitive advantage. This is because technology is a never-ending cycle, with change after change. This is because technology is always improving with new innovations in order to stay competitive. Many cell phone and telecommunication companies are competing for the top spot in their respective fields in the broad communication industry. Since they are basically offering the same product or service, this makes it a very tight competition. These companies are looking for ways to attract customers to their businesses. Their offerings they use to attract customers include low price rates, more service features, better products, and other business tactics. All these can be place into Porter’s Competitive …show more content…
Since, technology is so advanced and continually improving, cell phones/ smart phones have the same basic functions. So, in order to make a certain product stand out, the business needs to make their product unique in the customer’s eyes. Let’s take Samsung’s newest smartphone product (as of right now) the Galaxy s6 edge. The features that differentiates this smartphone from all the rest are faster charging speed, wireless charging, sharing information with contacts, ability to sync all products together, and real-time camera abilities (5 Unique Features). By using the differentiation strategy, it lowers customers’ sensitivity to price, increases buyer loyalty, and can generate higher profit