Competitive Advantage Analysis

Running head: COMPETITIVE ADVANTAGE ANALYSIS
Competitive Advantage Analysis
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COMPETITIVE ADVANTAGE ANALYSIS1
Section B1- Industry Analysis
B1a) Porter’s Five Forces Analysis of Mobile Telecom Industry (Apple- iPhone XR)
The Porter’s Five Forces Model Analysis is the most powerful tool which will be
suitable in understanding where the power lies in the respective situation of the business (Tan
and Sousa 2015). It is useful as it assists in understanding the strengths of the current
competitive position along with position in which the company is trying to move in contrast
to the other competitors (Riasi 2015).
Competitive Rivalry
In the telecom industry, Apple iPhone XR faces high level of competition and it is
considered to be the strong force. The different companies like Samsung and LG are the ones
which aggressively competes with Apple and such level of aggressiveness and imitation
imitate strong type of force in the industry environment (Noe et al. 2017). In case of
differentiation of the products, the products which are available in market are similar in
nature which fulfills specific kind of purposes (Pereira-Moliner et al. 2015). For instance-
There are different popular applications which are available in iOS and Android and due to
the same, the customers switch from Apple to other competitors and it leads to tough rivalry
for Apple iPhone XR. Samsung Mobile Phones hold 15.1% of the market share and the other
mobile phone companies holds 44.2% market share that weakens the popularity of Apple
(Economist.com 2019).

COMPETITIVE ADVANTAGE ANALYSIS2
Figure 1: Analysis of Competitors of Apple
(Source: Anton 2015)
Bargaining Power of Buyers
In the current business environment, the bargaining power of buyers is strong which
affects the business of Apple and the other mobile phones company. In the respective field, it
is easy for the different customers to change their brand which makes them powerful in
compelling organizations such as Apple for ensuring satisfaction among the customers
(Molina-Azorín et al. 2015). In the telecom industry, it has been seen that as there is high
level of bargaining power of buyers, therefore the shifting of the preferences of the customers
from Apple to other competitors such as Samsung (Namada 2018).