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(1) Porter’s Competitive Force Model
Competitive Rivalry:
- Competitors from all over the world, like Sharp from Japan, LG from Korea
- New mobile phone models are released frequently from other mobile phone manufacturers
- Nearly all mobile phone brand has their own strong selling point, like Sharp has excellent screen quality, Nokia is reputed to its stable quality.
New Entrant
- Intellectual property is concentrated among a few industry participants, creating barriers to entry for new entrants and limiting competition among phone manufacturers.
- High established cost
- High technology is required
Customer power
- Sony Ericsson releases a wide range of product from high to low-tier. It gives customers broad choices to suit different needs.
- There is a trend of changing new model of mobile phone within a short period of time
- Sony Ericsson differentiates its product by its feature-rich and innovative mobile handset design. It successfully gains a large market share.
Supplier power
- Sony Ericsson is a International reputable brand
- Relatively good market coverage in the world when compared with LG, Sharp, Samsung
- Fast response to market needs, always produces new products with ultimate design
Substitute products
- Sony Ericsson produce its low and mid tier product in India to reduce the production cost. It allows them to produce more price competitive mobile phone.
- The design of ...