competitive strategy

Essay by reyann10University, Master'sB+, February 2014

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I. Executive Summary

The local mobile handset industry is growing in the Philippines. Investing in this industry is a serious business and requires a lot of knowledge before starting. This industry analysis will provide any investor the information needed once he pursues to enter the local mobile handset market. Being not aware and simply plunging with the investment without planning will lead to an early crisis for new entrants.

Any businessman knows that one of the main points for establishing a new business is to earn a profit but it will not happen if there is inaccuracy in the part of the investor. The big problems with this industry are that there are already many competitors and the investor might think of investing his money somewhere else due to fear of losing it. The solution to this is to know the advantages and disadvantages of every aspect in the industry to gain competitive advantage over the others and in turn make money.

The market for the mobile handset industry in the Philippines can be classified into two: namely the shares of each brand and the market share for each of the five Porter's Forces. The first simply states the market share of each local brand such as MyPhone and Cherry Mobile having their own cuts in the market. The second is what an investor should focus on because it is more important as it shows not the market share of the brands but the market that makes up the brand. Examples are: the market for the raw materials, the market for different buyers, and the market for substitutes. All the factors must be taken into consideration when investing on this business.

The model to use in this industry analysis is Porter's Five Forces. Each of the five forces will show...