The company that I am focusing on is Apple iPhones. Define the industry. What are the main companies in this industry? What is the level of market concentration in this industry? To what extent are the products/services from this industry homogenous? How would you characterize the barriers to entry in this industry? How would you characterize the market structure of this industry (perfect competition, monopolistic competition, oligopoly or monopoly)? How does the market structure affect the business strategy and performance of Apple? To what extent may the market structure in this industry lead firms to engage in anticompetitive behaviors?
Apple iphone operates in Smartphone and PC laptop segment where companies like Samsung, Dell, Oppo, Vivo, Xiaomi, Asus, Sony, Toshiba operate.
The level of market concentration is lmedium since it is monopolistic competitive market. Products here are homogeneous as they compete in similar targets markets and pricing points with similar utilities and configuration.
Barriers to entry here are changing customers preferences, high initial investment, errant government protocols and bureaucracy, hypercompetition.
Market structure of monopolistic competitive nature affects Apple in profitability as one major player Samsung drives volumes and pricing and major market share which leaves Apple with reducing prices to remain competitive and hnece margins reduce.
This kind of market structure causes firms to collude or form price cartels which is anticompetitive to garner higher market share in customer and revenue and dethrottle any one player.
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