Samsung Porters 5 Forces Analysis

It can also be argued that the increase in sales could be driven by back-Washbowl promotions. Because the tablet PC market is reaching its maturity stage because of the growing number of sellers, the choice available to the consumer is big. The worldwide tablet market is led by Apple’s Pad product line. Although Apple’s market share decreased with % In one year, it maintains its leading position in 2014 with 22,8 % share of the market. Samsung is ranked on the second place with 18,3 % of the market share.

SASS holds a number three position despite its decreased market share from 7. 4% in 2013 to 6. 5% in 2014. Leno, who occupied the number 3 position in the second quarter of 014, digressed to the 4th position with only 3 million units with a 5. 7% QUO market share. Finally, RCA achieved Its number five position by shipping 2. 6 million units and also bumping their market shares up to We could therefore state that the tablet industry is a oligopoly with Apple occupying the leading position, challenged by Samsung and SASS, Leno and RCA as main followers in this market.

Brief analysis of Porters Five Forces In this paragraph the five factors of the Porter’s Five Forces Model will be briefly discussed. Firstly, the extend of competitive rivalry Is quite high due to the large umber of competing companies. Although it is forecasted that Apple and Samsung are going to remain their leading position in the medium term, it is possible that these leaders could be challenged by other companies since more and more competitors are starting to appear in the table industry.

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As we can see in the table above, 41 . 8% of the market share is hold by other companies than the top five vendors of tablets and they are all trying to obtain market share. There Is a big competition between the tablet companies because innovation is needed to survive n this industry as technologies continue to transform. Concerning the bargaining power of buyers, customers can switch tablet brand without actual costs. They have the choice between a large number of different tablets from different companies.

Because these products aren’t largely differentiated, every type of customer can choose every type or brand of the tablet. The only factor that could restrict the power AT Dryers Is ten Tact Tanat one AT ten operating system Is parterre over ten toner one, but this can only be considered as a small restriction. Overall, the power of the client an thus be considered high. The bargaining power of the supplier on the other hand is rather low as companies in this industry are manufacturing their products by themselves and thus are not dependent of a supplier.

The threat of potential new entrants into this market can be considered rather low or medium as it can be difficult for new companies to catch up with the big companies who already have experience and a high brand awareness and because of the high startup capital that is needed to enter this industry. Finally, the threat of substitutes is high as the customer has the choice between a wide range of products who are able to offer the buyer more or less the same functionalities.