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Google: Software

Apple: Consumer electronics

Vodafone: Telecommunications

LG: Consumer electronics

Meta/Facebook: Software

Dell: Computers

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Apple- Consumer electronics

Vodafone - Telecommunication

Uber- Software-Application

Lenovo--Computers

HP- Computer

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1. Many of these companies have consumer loyalty which means that not many people switch after buying from a particular brand

2. Companies offer deals to ensure that you stay with their products instead of changing

3. Many devices can be paired together or linked to ensure that you buy from the same company instead of different ones

4. There are already some very strong competitors who have high technology skill and have had a lot of consumer

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Existing firms that act as threats to new entrants:

Currys UK- 9.5 billion pounds in 2022/23

Amazon(consumer electronics) UK-4.13 billion pounds

Ultra electronics UK: 850 million pounds

Cost: The consumer electronics industry typically requires significant upfront investments in research and development, manufacturing facilities, and marketing.

Economies of Scale:

Barrier: Established companies benefit from economies of scale, allowing them to produce electronics at lower costs per unit.

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zowie-software

uber-software

Vodafone - telecommunication

BT - telecommunication

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1.Small Threat of substitutes from foreign firms in China such as Huawei and Xiaomi with Huawei having a 3.45% market share in november 2022 but decreasing to 2.27% in october 2023 with Xiaomi having very similar marketshare.

2. Compared to apple and samsung who dominate the market with 50% and 30% respectively, these chinese firms do not have much threat over these 2 companies.

3.There are currently no trade restrictions between the UK and china but tensions are rising and in the future potential trade sanctions could take place.

Overall, threat of substitution in the UK is very low with 2 dominant firms apple and samsung leading the market.

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There are many established suppliers in the UK, high bargaining power.

The uniqueness of UK suppliers service is that they offer a good quality service and tech solutions.

The Consumer Electronics market is expected to show a volume growth of in 2024, meaning the number of suppliers will be increasing making it easy to substitute.

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In the US consumer electronic industry, big players hold a substantial amount of power over their suppliers. Therefore, suppliers have low bargaining power over firms within this market. For example, Samsung achieves a low-cost strategy by negotiating with suppliers for raw materials at a reduced cost.

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1. Large-volume purchases, they have more bargaining power

2. products are similar across various brands, buyers have higher bargaining power since they can easily switch between brands

3. If buyers have a high degree of loyalty to a brand, they may be more inclined to accept the price and terms of that brand, weakening their negotiating power.For example, Dyson's product positioning is relatively high-end, and the audience is relatively specific

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The bargaining power of buyers is relatively high. They have the ability to purchase substitute products from other brands in the industry as it's dominated by established and well-known companies, including Apple, Samsung, Huawei, and Sony (Statista, 2023)

The retail revenue from consumer electronics sales in the United States is expected to reach close to 485 billion U.S. dollars by the end of 2023. So buyers can massively shape this market.

American Consumers are becoming price-sensitive as more than half of consumers asked about the outlook on the economy claimed it was gloomy and that they are experiencing financial hardship (Economist, 2023). This shows that consumer bargaining is becoming high as they will want lower prices from firms in this industry.

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Bargaining power of suppliers is low - Apple has hundreds of suppliers

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1. Heavily reliant on lithium mines for batteries

2, Large amounts of suppliers can be reached, mostly from Asia (Apple’s 2022 suppliers list reports on 200 suppliers and over 600 production facilities.)

3， Highly dependent on outsourcing (American economics are focused on maximizing the profit, lack of manufacturing ability)

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The threat of substitutes is relatively high in the industry. rivalry within the market allows consumers to have a low switching cost. To Samsung, there is a competing substitute available for every product they create and although substitutions are high for all brands and companies within the market, Apple are outliers. Apple's high level of customer loyalty and its product ecosystem warrants a high switching cost. overall electronic consumers have a low tendency to substitutes as well. Customers prefer to use one device with all functions than to buy single-use products.

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The number of competitors is fairly low with a couple of leading firms in each market in the consumer electronics industry.

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1. Low threat of entrants

2. High barriers of entry and exit

3. Apple spent USD$30 billion on R&D

4. Apple, Microsoft and Google own most of the shares making it harder for new firms to enter the market

5. Most consumers already have a brand they find trustworthy, and it's hard for them to switch their choices

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The threat of new entrants is low as a result of the industry's high-cost capital requirements. This is particularly evident in the fact that Apple spent $18.75 billion on Research and Development alone in 2020 and so it is incredibly difficult for new companies to enter this industry. In order to ensure customer satisfaction, companies must innovate and offer different products from their competitors which new entrants may not have the means to do. This also means that not only is the cost to enter the industry is high, but also cost to exit, reinforced by the fact that are specialised assets as well as interrelated businesses that need to be considered.

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Rivalry amongst firms within the US consumer electronics industry is high as the top 20 Global Brands Worldwide for 2020 include companies from this industry e.g. Apple. Within this space, many companies offer similar deals which increases the rivalry amongst firms. Therefore, innovation and Research and Development is extremely important in terms of ensuring the rivalry between firms is lessened.