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High exit barriers, like very specialized assets or management’s loyalty to a particular business, keep companies competing even though they may even bear negative returns on investment.

These factors build into industry economies. And, due to the interaction and interdependence among industrial members, rational application of competitive strategy such as advertising war and technology upgrade, will improve not only the rival sponsor’s living condition, but also the economic environment of the other participants in the same industry. While, some strategies, such as malicious price cutting, will deprive competitors of potential profit、impair their potential capacity for future development and even threaten their survival condition.

According to report on global handset market, the top 5 manufacturing companies are Nokia, Motorola, Samsung, LG, and Sony-Ericsson, with their global mobile phone market of 35%, 16.3%, 12.1%, 7.2% and 6.9% respectively. Among the top 5, Nokia attained 35% of the global mobile phone market in Q4 2005. Its market share grew from 33% in Q4 2004, while Motorola climbed to 16.3% on the back of its popular RAZR thin phone and ultra cheap models it has introduced for emerging markets. Nokia’s highest ever market share was in 2002 when it

achieved 35.8% for the year. Its highest market share in a single quarter was 36.9% in Q4 2001. Samsung’s market share slipped to 12.1% from 12.2% in Q4 2004. (blogs.zdnet.com) Apparently, there exists market share gap between no.1 and no. 2; it’s unimaginable to weaken Nokia’s leading position on the international mobile market in foreseeable period.

According to research on Chinese domestic handset market, at the end of 2005, the top 5 mobile handset manufacturers in China are in turn: Nokia, Motorola, Samsung, Bird, and Amoi, with holistic mobile selling market share of 23.8%, 13.3%, 9.6%, 6.1% and 4.2% respectively. Compared with previous top list, the market positions of first 3 companies still keep relatively stable; while the domestic mobile handset producers such as Bird and Amoi begin to make a figure.

Section 6. Conclusion based on Porter’s model

To sum up, the aforementioned analysis based on Porter’s model reveals that the most influential threat is in turn from the buyer, the supplier, and then the existent competitors. Obviously, such result is mainly because of improved significance of market-oriented effect due to intensified competition, and of accelerated operational rhyme in every handset manufacturer.

From the perspective of new entrants, due to reasons such as tough defense barriers by the incumbents、vast capital requirement and brand identity etc, it will take certain long time for new entrants to grow into a strong force challengeable to incumbents. As is evident, the list of place of existent leading companies is kept relatively steady through decades本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。