In if access is denied by the government

In
the smartphone industry, the threat of new entrant is very low because the
capital required to start and run the company is very high, unlike the fruit
industry that any individual can set up with a very low capital. Smartphone
manufacturing requires a high cost both in research and technology advancement
in other to be competitive and remain in the market.

 

Patent: This
is another barrier that stands against new entrant in the smartphone industry, for
government to approve the manufacturing and sale of a particular product in a
particular country, there are processes involved. License will be granted by
the government before the invention of that smartphone company will have access
to carry out its manufacturing process, and if access is denied by the
government of the country then such company will seize to exist except where
the company changes its location to different country that will grant them
access to the market.

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Brand Recognition: Loyal
customers are not easily convinced to switch from the brand that satisfy them
the most, this is one reason every organization should give the best product
and service, quality and duration is very important when it comes to purchasing
of electronic devices such as; Smartphones, Tablets, Accessories etc. It will
be difficult for Apple customers to switch to other brand because of the high
security protection against viruses/malware that can easily breakdown the
smartphone or used by hackers to steal information from the device. But where
customers are being tempted try other brand is when the other brand has more
features in their smartphone and reliable than the brand they are more familiar
with. (Boyes and Melvin, 2012)

 

Advancement in Technology: Nokia for example, to
compete in the smartphone industry, the company have to upgrade all of its
manufacturing machines, software, etc. else setting up a new and modern technology
from the scratch will incur more cost and as Information Technology changes
rapidly it may be that after purchasing a new machine an upgrade of that
machine may be introduced and will have more features than the one that has
been purchased from the manufacturer.

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