Porters Five Force Analysis for Cell Phone

Industry rivalry: [ very high] Industry rivalry: is very competitive, pricing plan trying to lure you away celerity endorsement this is a very competitive industry people complete on a cost and on differentiation each offers features that the other may not have.

The threat of new entrants[very low] really cost prohibitive it takes a lot of capital to complete with the large companies are already doing business in the cell phone industry so the threat of new entrance is very low the

Threat of substitutes[still low]: whats a substitute product for telephone a land-line writing a letter Skype, email computer communication or may be notebook are pat computing so in this market the threat of substitute products is still low because those things don't really offer the flexibility and ease that your cell phone does.

Bargaining power of buyers[pretty high]: you and me we can go to any phone provider we like if our current service agreement is expired. the service agreement is a switching cost until 2004 you wouldn't`t take your phone number with you either this was a big switching cost but now you can switch when you like you might have to pay a penalty if you do it early so are powered is pretty high.

Bargaining power of suppliers[low]: I had no idea so i had to look this one up on the internet but did the bottom line seems to be that there are parts that go into making a cell phone chips batteries sim cards etc that there are many manufactures for all of these parts and the supply for them is very easy to come by so the bargaining power of suppliers is low.