We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Mobile Phone and New Entrants Essay Sample

essay
The whole doc is available only for registered users OPEN DOC

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Mobile Phone and New Entrants Essay Sample

2.2 Industry Analysis

(i) Threat of new entrants

Based on case analysis, we indicate that the threat of new entrants for TomTom is considered as medium or moderate. Although new entrants coming into same industry with TomTom was brings a smaller impact of their sales and revenue growth, but TomTom still able to sustain it. For example, the rapidly growth in the industry of smart phones and cell phones, it is causes many new entrants coming it and affected a little of sales and revenue growth of TomTom.

With the size of its customers and technology base, distribution power and prominent brand image and recognition, TomTom was still able to achieve the competitive advantages and compete with new entrants. Additionally, the use of strategic alliances also enables TomTom to strengthen their competitive advantages and compete with the new entrants. Apart from that, the wide range of products that offering by TomTom also enables them to compete with new entrants since new entrants has lack of resources and new products offerings. Thus, it can be said the threats of new entrants for TomTom is medium or moderate.

(ii) Bargaining power of suppliers

Secondly, the bargaining power of suppliers for TomTom was considered as moderate. TomTom has outsources its supply chain and distribution model which enables TomTom to increase their ability to scale up or down the supply chain and limiting capital expenditure risk. Additionally, TomTom was able to mitigate their supply distribution risk of the high volume products while maintaining dual-sourcing production from two different manufacturing partners. Nevertheless, TomTom only depend on limited number of third parties and in certain instances sole suppliers for the component supply and manufacturing, thus it increases TomTom’s dependency on these suppliers and increases the powerful of suppliers. For instance, many innovative products that created by TomTom only available from specific leading technology organisations. Therefore, it can be said the bargaining power of suppliers for TomTom is considered as moderate.

(iii) Bargaining power of buyers

Next, the bargaining power of buyers for TomTom is considered as high. TomTom has a wide array of customer and can be classified into different groups which are consumers who buy standalone portable navigation devices and services, automobile manufactures, the aviation industry and pilots with personal planes, business enterprise, coast guards and others. But, each customer has its own needs and desired and tends to influence TomTom to provide more quality of products at a lower price.

In order to meet the needs and desired of customers, TomTom was offering wide variety of products with different price range, features, design and quality. Sometimes, in order to meet the demand of buyers, TomTom would tend to lower prices of the products. For instances, TomTom was offering built-in-car navigation devices at a significantly lower prices. Additionally, with the rapidly growing of the trends of smart phones and cell phones, TomTom tend to lower prices of the products to meet the demands. Thus, it can be said the bargaining power for TomTom is high. (iv) Threat of substitute products

Based on case analysis, we indicate the threat of substitute products for TomTom is considered as high. It is shows that the sales of portable navigation system for TomTom were dropping when the smart phone or cell phone was rapidly growing. Especially for Generation X and Generation Y, they are preferred to choose smart phone or cell phone because it enables them to do everything and free of charge such as GPS navigation services. Because of the free services or application that provided by smart phones or cell phones, thus many consumers are prefer to buy smart phones or cell phones rather than purchase only GPS devices which is only few functions and features and highly cost. Thus, it is shows TomTom has a high threat of substitute products.

(v) Intensity of rivalry among competitor

In this case, it is indicates that TomTom has a strong intensity of rivalry among competitors. This is because we found that TomTom has over 15 competitors and facing competition in several different industries such as satellite and broadcast network equipment, computer hardware, handheld computers and accessories, computer software, database and file management services and engineering, scientific and computer-aided design or computer-aided manufacturing software.

For example, we found that TomTom was facing increasing competition from smart phones which all of them offer a virtually same features and services and also facing the composition with maps, services and built- in systems in cars with others. Besides, we found there are 2 major competitors of TomTom which included Garmin and Magellan. Based on the case, we able to indicate that TomTom are always compete with them and have a price war exist between them. Thus, the intensity of rivalry among competitors for TomTom is considered high.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

The mobile telecommunication industry in Zimbabwe

The overall success of a company depends upon its capital budgeting process, so capital budgeting should be handled properly because it shows the efficiency and financial strength of a company. Capital budgeting process is very important in companies because it is used to generate returns and profits to the company and its stakeholders. Capital budgeting is the most important function done by financial managers and...

Mobile Phone Speech

Boys, girls, classmates why are we ridden with them? Why do they resort to crime? Unfit lazy children are the things I'm talking about. Sport is our answer. I've seen old ladies being robbed. I've seen children spend days on end in front of the television. I have helped obese people get better. I have studied sports science. I understand the human body and it...

The Impact of Mobile Phones on Social...

1- Background & context 1.1 - History The basic concept of mobile phones began in 1947, when researchers looked at crude mobile (car) phones and realized that by using small cells (range of service area) they could increase the traffic capacity of mobile phones substantially. However the lack of technology combined with Federal Communication Commission (FCC) regulation meant that it was not until 1968 when...

Mobile Phones

The mobile phone is not just an electronic gadget today, and no one is able to define in one way about the usage of mobile phones. With the advent of technology, the mobile phones are becoming a rage among the common people. The mobile phones are not used as just communication tools these days but are also considered as devices which have strong communication networks...

Hazards of Mobile Phones

INTRODUCTION 1.Global System Mobile (GSM) phones have brought a rapid revolution in the field of communication and altered our way of life to an unimaginable degree. Anytime some old member of a family applies tales regarding prior modes of communication like beepers, postal letters and telegrams, the children of Twenty-First Century feel really surprised. So, it’s a fact that the Mobile phone technology has started...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member