Question

In: Economics

The smartphone market has been dominated by Apple, but recently the Droid has been able to...



The smartphone market has been dominated by Apple, but recently the Droid has been able to leverage Google’s information services into market gains while Blackberry, known for its se- cure business-oriented network, has attempted to become more attractive with a “friendlier” interface. At the same time, a number of less ca- pable fringe firms are emerging. How do these features fit into an industrial organization (IO) view of the market versus a resource-based view (RBV)?

Solutions

Expert Solution

IO or industrial organization , in this type of economics field , it deals with firms having strategic behaviour, few policies as well like antitrust , regulatory policies and the market competition. This economic theory is based upon price to industries.

In the Smartphone industry/market , now there are few players competiting amongst each eachother like Samsung,Htc,Apple,Lg,Blackberry,Vivo,Oppo,Xaiomi, ect. and these companies are doing well in this segment.But, still Apple and Samsung are the major players having the most market share in the said industry, these are the leading producers as well.

In this existing market structuture where these companies compete are monopolistic competitive market in nature, many big producers are concentrated on a segment and also having vast and wise product differentiation. These business's are runninng with large amount of fixed cost and also spending large amount of money in promotional activities, and these business's have their own marketing strategies when they need to enter into different markets, to brand promotion and so on. these companies also obey the policies and regulations/laws of the government in this segment and by doing so how they respect each other .

and when view this according to resource based it reveals What the firms has , what resources the firm has. how efficiently these resources are being used to meet the objectives/goals of the firm,how can a firm achieve or hold a competitive edge in the market, all the above mentioned companies mainly focus on competitive structure which are resource based , each one has a better component in their product, where these companies are good at explaining this to there consumers, every company has its unique selling proposition which they convey to their consumers. So, the companies which does all the task best, means they will be accepted by the consumers easily , this will help them to to lead the market by accumulating some followers.

These two dimensions(industrial organization and resource based view) are where these companies compete in.


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