Competitive Forces and Strategic Issues in the Smartphone & Tablet Industry. Apple Inc - Assignment Example

According to Utterback and Abernathy (1975) such a shift in a company’s strategic focus can be a major challenge but also have important competitive benefits. The challenge arises for example from the need of organizational restructuring and acquiring new capabilities to enable a successful transition from products to processes. The important benefits in this case were that the change in strategic shift allowed the organization to take advantage of the effects of the technological discontinuities to the industry.

The emergence of the mobile Web and related technologies initiated a new technology cycle that shifted the consumer electronics industry towards smartphones and tablets. These gadgets have consolidated functions that previously required use of multiple devices such as cameras, music players, video players, computers and telephones into a single device. Industry lifecycle theory has long postulated that industries evolve through distinct phases and that each phase is associated with different basis of competition at the firm level.

In the traditional industry lifecycle model the basis of competitive strategy changes from product innovation to process improvement as the industry evolves (Utterback & Abernathy 1975). However, in the enhanced model, Cusumano et al. (2006) proposed service as an important component of this shift in strategy as the industry evolves. . The challenge arises for example from the need of organizational restructuring and acquiring new capabilities to enable a successful transition from products to processes.

The important benefits in this case were that the change in strategic shift allowed the organization to take advantage of the effects of the technological discontinuities to the industry. The emergence of the mobile Web and related technologies initiated a new technology cycle that shifted the consumer electronics industry towards smartphones and tablets. These gadgets have consolidated functions that previously required use of multiple devices such as cameras, music players, video players, computers and telephones into a single device.

Industry lifecycle theory has long postulated that industries evolve through distinct phases and that each phase is associated with different basis of competition at the firm level. In the traditional industry lifecycle model the basis of competitive strategy changes from product innovation to process improvement as the industry evolves (Utterback & Abernathy 1975). However, in the enhanced model, Cusumano et al. (2006) proposed service as an important component of this shift in strategy as the industry evolves.

This discussion uses the enhanced model, shown in Appendix A, together with Porter’s five forces to provide an in-depth analysis of the competitive forces and strategic issues shaping the smartphone and tablet industry from 2011 onwards. The three major forces that shall shape the future of this industry are threat of entrants, buyer power and industry rivalry. 1.1. The weaker forces 1.1.1. Power of suppliers This is probably the weakest competitive force in this industry. The smartphone and tablet industry is dominated by five companies