Apple Essay Example | Topics and Well Written Essays - 4000 words

Apple - Essay Example Due to this reason, tablets with the facility of mobile have appeared as perfect product which can satisfy the demand of customers (Infinite Research, n.d.). The smartphone and tablet PC industry is characterised by creativity, dependability and expandability. Smartphone and tablets are highly innovative products with trendy features where numerous factors can inspire the demand of this industry such as usage of internet among customers, increased competitiveness and delivery of smartphones and tablets among others. In this regards, the five forces model presented by Michael Porter is an excellent tool for assessing the smart phone and the tablet industry. Porter’s Five Forces Analysis Rivalry The smart phone and tablet industry is unstable and competitive which gives rise to considerable rivalry. In order to survive in this industry there is need for continuous development of new products and incorporate innovative technologies for encouraging customers’ demand. ... Due to international circulation of cutting edge technology, it is quite difficult for new organisations to enter into the highly competitive market of smartphone and tablet PC. Although it is easy for other organisations to develop device such as iPad, but in order to gain sustainability in the market, an organisation requires cost effectiveness too. Thus, unless new entrants in this industry gain higher economies of scale or higher market share, survival in this industry for the long run shall be quite challenging (James, 2009). Threat of Substitutes The threat of substitutes in smartphone and tablet PC industry is quite weak. The tablet PC and smartphone both act as an alternative product for notebook, computer and mobile phones. Through tablet PC and smartphone, people can enjoy the facilities of notebook, computer and mobile phones (James, 2009). Bargaining Power of Suppliers The bargaining power of suppliers is strong in smartphone and tablet PC industry. As this industry is as sociated with technology, suppliers play a vital part in providing inexpensive raw materials for production of finished products which can help organisations to gain cost competitiveness. Furthermore, smartphone processors are produced by only a few organisations due to which maintaining good relationship with those organisations become essential for accomplishing success in smartphone and tablet PC industry (James, 2009). Bargaining Power of Buyers The bargaining power of buyers in smartphone and tablet PC industry is moderate. The revenue of smartphone and tablet PC producers is derived by sales of product. In present day’s business context, buyers do not possess many alternatives but to acquire smartphone and tablet PCs. However, the power of buyer falls in switching the