3141 group ass: porter 5 forces and life cycle

Porter’s Five Forces Model:

Porter’s five forces model is commonly used when making an analysis of competitive structure of an industry and the factors need to consider and analyse include: competitive rivalry within an industry, barriers or threats to entry, supplier power, buyer power, and threat of substitutes.

1. Competitive rivalry within an industry:
When analyzing an industry, it is necessary to pay attention on each main competitor, there are a few factors that every company should analyse, these include the concentration, structural diversity, differentiation, and production capacity, applying in Motorola, competition is caused by the presence of many other companies that compete for the same target market and supply, secondly, low switching cost for customers to choose between all the similar products, thirdly, there is rare strategy for remedy when the company losing its market position and advantages, and lastly, a diversity of rivals with different histories, culture, and environment.

Motorola is also facing a problem that there are many competitors such as Apple, Samsung, LG, Sony, and so on, the competition in the smartphone industry is really high, one of the important way that the company needs to consider is “the fight of high value”, they should work to gain more valued consumers, and gain the advantages that to always go first and support a country or city which is in the most difficult period of development.

2. Barriers or threats to entry:
The barriers of entry in the smartphone industry include, the scale of the investment, the identity of the brand, access to distribution channels, economies of scale, and government policies and regulations, economies of scale play a significant role in the cost of production, each firms in this industry have competitive fixed costs and