BSM 600 Chapter Notes - Chapter 2: Pest Analysis, Patent Infringement, Sunk Costs
22 Jan 2017
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Document Summary
Huge growth industry in last 20 years. Over time, increasing complexity in tech and end user requirements made it so that it"s hard for any single company to retain leading expertise. Early leaders became systems integrators and assemblers, supporting many specialists. Also there was the entrance of established telecom equipment manufacturers and consumer electronics companies, and international ones. Many previous contract manufacturers now supplying their own brand. Strong vertical bargaining power from both suppliers and customers. Also have to deal with powerful suppliers. Overall: less industry profitability even though high demand. There"s a possibility that market saturation will also happen in recently developed markets. Balance of bargaining power between handset manufacturer and service providers. All the external influences that affect biz decision, performance. Good environmental scan because it"s simple and systematic. P: govt licenses, standardization (e. g. charger ports; standardized = commoditization, could mean people buy solely on price), restrictions on usage (e. g. cars, planes)
