Week 3 Assignment

Week 3 Assignment

[Name of the Writer]

[Name of the Institution]

Week 3 Assignment

RIVALRY STRATEGY TOOL

Evaluating the Intensity of Rivalry

1

2

3

4

5

<40%

40-50%

50-60%

60-70%

>70%

Number and Relative Size of Competitors

Top 4 competitors’ combined industry marketing share

Explanation/Source of Data: Number and size of the company’s (Nokia’s) are relatively high than most of others in the industry.

High

Medium

Low

<2%

2-5%

5-10%

10-15%

>15%

100%

75%

50%

25%

0

Low

Medium

High

Low

Medium

High

Degree of Industry Product Standardization

(Take the average of bullet points below)

Difference Between Competitors in Price of Similar Products

Explanation/Source of Data: Explanation says that the difference among competitors based on price of similar products is not too much.

What % of Industry’s Products are Sold at Discount?

Explanation/Source of Data: Not a huge percentage of industry products are sold at discounts (especially Samsung and iPhone).

Customers’ Ability to Recognize Brands from Industry

Explanation/Source of Data: Based on case analysis, customers are highly capable to recognize brands and quality products and then make their purchases on that basis.

Degree of Switching Costs

Explanation/Source of Data: The switching cost in the industry is very low and customers can switch to another products and competitors conveniently.

<0%

0-1%

1-3%

3-5%

>5%

Industry Growth Rate

Explanation/Source of Data: The growth rate of industry is very high and it is because of the innovation, technological advancement, and new offerings by competitors.

<70%

70-80%

80-90%

90-100%

>100%

Unused Industry Production Capacity

% of industry wide production capacity currently in use

Explanation/Source of Data: The production capacity presently in use is comparatively high than production capacity of other industries.

High

Medium

Low

Degree to which Firms have High Fixed Costs or Products have

High Storage Costs of are Perishable

Explanation/Source of Data: Firms sometimes produces more than the actual demand and do not waste capacity.

Hence, they need to drop or critical risk having unsold products. In short, the degree to which firms have fixed cost is higher than normal.

High

Medium

Low

Extent of Exit Barriers

Explanation/Source of Data: Firms have huge investments which includes special investment like innovative and advance technology and machinery. So firms cannot exit without taking huge losses. Hence exist barriers are huge.

65313510310

Fiercely Competitive

Neutral

Mildly Competitive

OVERALL INTENSITY OF RIVALRY

(Take the average of the major factors, items numbered 1 through

6).

The overall industry is attractive and profitable where firms have created values, power, strong presence, barriers to entry, eliminated threats of substitutes, but have strong rivalry.

References

Cecere, G., Corrocher, N., & Battaglia, R. D. (2015). Innovation and competition in the smartphone industry: Is there a Dominant Design? Telecommunications Policy, 39(3-4), 162-175.

Zhai, X., & Zhao, L. (2017). The Return of Nokia: Appeal for Craftsmanship Spirit in the Internet Age. DEStech Transactions on Computer Science and Engineering, (icitia).