Supply Chain

Introduction

After completion of the literature as reviewed in the Part I, it is obviously that the industry environment of mobile phone industry is severely competitive and companies are easily to adapt to any changes resulted from both macro environment as well as the industry environment.

In general, there are several existing advantages and limitations in the industry, including: -

Advantages

1. High availability of information systems in the market which enables companies to further deploy the advance technology in their logistics management for improving the service efficiency and cost effectiveness, including real time information sharing;

2. Low degree of threat of new entrants will not further exacerbate the intensive competition in the market;

3. Small bargaining power of components suppliers make phone manufacturers to have higher bargaining power as well as obtain cost benefit while order phone components.

Limitations

1. Short product cycle leads the supply chain in the mobile phone industry to become shorter and shorter, however, real time information is still not to be shared immediately among most industry players;

2. The intensity of the competitions among the existing rival firms is high that induce the companies to further diversify their business as well as differentiate their products no matter in the logistics activities and product development and the competition becomes even more severe;

3. Great bargaining power of buyers induces restriction for phone manufacturers to determine their product prices;

4. High degree of availability of substitutes threats customersÐŽ¦ loyal to any phone product that means no customersÐŽ¦ loyalty to any phone makers.

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