Essay about Porter 5 Forces Analysis of Blackberry

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Bargaining Power of SUPPLIERS: Moderate/
- There are plenty of hardware component manufacturers for cellphones but BlackBerry’s operating system is complicated therefore it limits the number of software developers that will work with them.
- This problem was most recently seen when BlackBerry struggled to get native applications for the launch of the Z10.
- The Bargaining Power of Suppliers for Blackberry has increased, due to Blackberry’s eroding market share. Firms who dominate the mobile communications industry, such as Apple and Samsung, have relatively higher bargaining power, because their larger product orders account for more of the suppliers business.

Bargaining Power of BUYERS: High/Moderately High/
- Large …show more content…
Furthermore, as substitutes and disruptive alternative technologies enter the mobile market, competitors will see a decrease in operating margins. For instance, in 2011 the average cost of a tablet was $423 and it is predicted by 2013 year end it will fall to $300 (“Research”, 2012). Consequently, a market saturated with substitutes, similar to the tablet market scenario, will constrict profit margins and limit the amount of capital available for new product innovations.
- While brands differentiate between different Smartphones to an extent, Smartphones in the same price range have mostly the same functions.

COMPETITIVE Rivalry: High/High/Medium
- Huge Rivalry amongst Nokia, Apple, Google & Microsoft
- low product differentiation
- Apple and Samsung have captured more than 50% of the Smartphone market (Bernstein, 2012), and various other competitors are scrambling to increase their market share. High production costs in the early stages of the mobile product life-cycle mean that competitors fiercely pursue speed-to-market production, in order to optimize profit margins and maximize sales of their products before they become outdated and obsolete. Furthermore as rivalries increase, thinning market share translates into reduced revenues and less financial resources for product development.
- The mobile device and data solutions industry is highly concentrated, characterized by a few large competitors and numerous smaller
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