The smart phone market has been dominated by Apple, but recently the Droid has b

Question

The smart phone 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 secure business oriented network, has attempted to become more attractive with a “friendlier” interface. At the same time, a number of less capable fringe firms are emerging. How do these features fit into an Industrial Organization (IO) view of the market versus a Resource-Based View (RBV)? Write your answer here. Carefully construct your answer with utilizing the strategic views discussed in class.

Explanation / Answer

industrial organization is the theory the firms, markets and their structure existed in industry. when it comes to smart phone market, there are few players competeing each other in the said segment. players like Apple, Samsung, Blackberry, HTC, Oneplus and many other are doing well. but still the major share is in the hands of Apple, which is the leading producer.

the existed market structure is monopolistic market in nature, all the players concentrated on a segment, with high product differentiation. the firms are running with huge fixed cost and spending huge amounts on promotional activitieis. they have their own market strategies to enter into different markets, promote their brands, and so on. they also focus on public policies, regulations and laws in the segment and how they respect each other.

on the other hand resource based view reveals what a firm is having, what are its resources, how these resources can be use to achieve the firm goals, how it gains competitive edge in the industry. the above companies focused on resource based competitive structure, each one is good at a specific component, they are good at explaining to its customers and so on. they are promoting their USPs to the customers, and the one who accepted by the customer is leading the market by having some followers.

so, these companies are competing each other in these two dimensions, i.e. Industrial organization and resource based view.

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