Therefore Shanzhai created phones that imitated the most current models of mainstream companies such as Lenovo or Apple. These devices, however, would be much cheaper than the real phones however, the quality would be poor. Shanzhai had many factors that contributed to their success such as their fast response to customer demand in a short period of time. It only took approximately 45 days for Shanzhai to develop a new design and mass produce the product, which was much faster than an average mainstream company. Not only did Shanzhai meet the demand of the customers by producing all of the products in a short period of time, but also knew what designs would be popular and be
The fact that PCs have such a large customer base that ranges from government to business to personal use means that the bargaining power of individual customers is low. There are also high switching costs associated with switching from one brand to another, and there is also a lot of brand loyalty in the PC market. The main power that customers currently have is the ability to choose substitutes, since PC-like capabilities are now featured on many mobile devices. Ultimately, the bargaining power of customers is a moderate force that is growing stronger as non-PC technology advances. Since more and more consumer products such as smart phones and tablets are now able to perform functions that were previously PC-exclusive, increasing the number of substitutes, PCs have become less unique in some of their capabilities.
3. Threat of Rivalry Personal Computers and the music/audio market are Apple’s two main areas of competition. Their leading competitors are Dell, HP, and Microsoft. Personal computers are quite popular today and with so many choices, the sales price of the computers need to be lowered to a competitive price which can, again, lead to a loss in profit. However Apple has, because of their easy to use and widely available, fair priced iPod(s), cornered the music market.
At an earlier stage, when mobile phones were expensive to buy, and hence a luxury for most people, reductions in price did bring about a significant increase in demand (suggesting demand was then elastic). Nowadays, the market is saturated, and consumers tend to be more interested in the features of the phone than in its price. Moreover many companies provide the phones literally or practically free of charge. Demand for an INDIVIDUAL COMPANY's phone is, however, a different matter. Here, competition between suppliers is often intense.
This is seen as a strength because Iron Dragon now has the capability of selling computers, servers, parts, and services directly to customers and (hopefully) opening up another source of revenue for the company. There are not very many Dell partners in this geographic area, and that adds to this particular advantage. One of Iron Dragon’s weaknesses is the lack of enough consistent capital to meet its needs. While Iron Dragon is profitable, expenses nearly equal revenues. Most of the time it is a hand-to-mouth existence.
Schwab’s competitive advantage lied in their focus on providing investors with low-cost access to making investments. Schwab invested heavily in technology to support their consumers evolving needs, and was able to be a first mover in new opportunities with phone (automated systems) and internet trading. Schwab’s low-cost structure gave them room to market heavily, and reinforce their reputation as a cost cutting company. 3.) How has the internet affected the brokerage industry?
Cloning the industry price If the virgin mobile clone the industry price they have various advantage to lure the customer, they have the differentiated applications and superior customer service. Also they are offering fewer hidden charges and better off-peak hours. Also our calculation (exhibit 1 & 2) shows that break even for the virgin mobile is less compare to industrial average but there are numerous drawbacks which outweigh this price strategy. • Virgin will loose the advantage of transparent pricing structure for customer by not eliminating all hidden charges. • Virgin may have to abandon its preferred target market of teenagers, due to contract implementation and billing system.
It is very useful to use online maps if we get lost, or look at the bus schedule. It really makes our lives easier and quicker. Even if we cannot make a call because of the lack of money, we can still stay in contact by using online chat applications, or even facebook. If we get bored, we can use our smartphone to entertain ourselves with games or music. So it is a really helpful tool, however for actual surviving it might be completely useless.
One reason online dating is often preferred is because it is a faster way for individuals to communicate with each other. What really astonishes society today is the fact that relationships can begin from the comfort of one’s home. The fact that there is an option to find a single with a good personality makes online dating that much more convenient than the traditional style. Another consideration when deciding between online and traditional dating is money. Traditional dating is much more expensive than online dating because a majority of dates include going either to the movies or out to dinner.
They should have realized that the consumer wanted something more than a bulky phone, it would have to be elegantly designed and a fashionable statement. The market size of the elite business traveler that can afford a $3000 phone is very limited, and once saturated, the growth rate would be non-existent. Also, rivals were going to launch their products within months after Iridium, at a dramatically lower cost per minute and cheaper equipment costs. The company only focused on one type of customer, the elite business traveler. They should have thought about what kind of