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Industrial Organization: How does the Cell Phone Industry Behave - Essay Example

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Industrial Organization: How does the Cell Phone Industry Behave Table of Contents Introduction 3 Thesis Statement 4 Description of the Products iPhone and Samsung Galaxy 4 Description of the Firms in the Industry as Well as The Level of Concentration 5 Level of Concentration 6 Cost Structure of the Industry 7 Demands of the Industry and its Customers 7 Downstream and Upstream Industries 8 Kinds of Strategic Interactions for this Industry 10 How Prices are Set 11 Conclusion 13 Works Cited 14 Introduction The cell phone industry is observed to be one of the rapidly growing industries throughout the world…
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Industrial Organization: How does the Cell Phone Industry Behave
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Download file to see previous pages In this industry, amid the leading players, Samsung and Apple have been the dominant players especially since the market surge of smartphones in the past decade. Samsung, a dominant player in the cell phone industry, commenced its business as a General Store in 1938, in northern area of Kyungsang, located in South Korea. The company is well known for manufacturing cheaper or affordable variety of electronic products. The present version of Samsung has been re-established under the invaluable guidance of its existing Chairman Lee Kun-hee. The main objectives of Samsung are to manufacture better technological features driven products through creative thoughts and investments on capital along with manpower resources. Samsung was ranked as the leading company in terms of technology based products in the global market during 2002. It has been observed that Samsung is one of the foremost companies in capturing the global markets with its products, irrespective of other competitors in the market. It can be stated that the success of the organization is essentially based on the handling the process of global branded products effectively. It also consists of efficient product line strategy in respect of brands. It makes huge investments in the area of Research & Development (R&D) for incorporating innovative technologies in various products especially mobile phones to meet the expectations of its diverse range of consumers (Roll 152-154). On the other hand, Apple Inc, a California based organization has been the pioneer in especially the smartphone industry by offering its unparallel offerings such as iPhone and iPad among others. In the cell phone industry, Apple has created its dominance by offering a series of iPhone version in recent years which has grabbed the attention of global consumers (Morningstar Equity Research, “Apple, Inc”). Thesis Statement The essay intends to provide a critical assessment of the prevalent behavior in the cell phone industry by significant consideration towards leading branded products such as iPhone and Samsung Galaxy rendered by Apple as well as Samsung respectively. It also provides a brief description of the organizations as well as the level of concentration in the industry. Moreover, the capital intensity (cost structure of the industry) and downstream and upstream industries are also discussed. Description of the Products iPhone and Samsung Galaxy Among the number of recognized products produced in the cell phone industry, Samsung Galaxy and iPhone brands have caught the imagination of global consumer segments. iPhone is one of the attractive and feature driven mobile phones that was launched first by Apple Inc. in 2007. iPhone has brought a drastic change in the technological innovations and given a new direction to the technological world. iPhone offers cellular connectivity, multi-touch screen facility, a number of downloadable apps, along with certain other features like proximity sensor which have been the major factors for its continued success in the industry. Conversely, Samsung in order ...Download file to see next pagesRead More
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