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Situation Analysis:: Porter's Five Forces

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SITUATION ANALYSIS:

Situation analysis refer to a collection of method that we use to analyze an


organization’s internal and external environment capabilities, customers, & business
environment.
The several method of situation analysis is described below:

 Porter’s Five Forces

Threats of
new
Entrants

Bargaining
Threat of
Substitute
Competition Power of
Buyers

Bargaining
Power of
Supplier

1. Threat of new entrants – Low


The threat of new entrants for OPPO is low because it is already a
well establish &
i. Customer a very loyal with the brands.
ii. Push regularly to launch new products.
iii. Huge manufacturing cost are required to beat OPPO.
iv. All leading companies are already in a tough competition so
there is a less chance for the entry of new competitor.
There is always possible threat of new entrants in the phone industry, not necessarily
threat of new mobile phone company but new product from established companies. So
OPPO has less danger from new entrants but we should must focused on existing
competitors.

2. Threat of substitute product – moderate


i. The power of substitute product is moderate and it depend
on the impact of the substitute product.
ii. OPPO has major threat from Apple & other android device
but as per all smart phone function are same so it has a
moderate threat from substitute.

3. Bargaining power of buyers – High


i. The bargaining power of customers is high because of
increasing number of choices in the market.
ii. Little differentiation of products.
iii. Buyers usually delay buying new models until the prices
come down favorable to them.

4. Bargaining power of Suppliers – Moderate


i. As the OPPO is the leading mobile phone company so that is
why they are in a very strong position when bargaining with
their suppliers.
ii. There is a lot of mobile hardware manufacturing companies
available for OPPO so we are in strong position for
bargaining with our suppliers.
iii. Due to availability of software suppliers.
5. Competition / Industrial rivalry – High
i. The primary competition of OPPO is high due to launch of
new products from already established & well-known
brands for example Samsung J7, Q-mobile.
ii. In application sector, OPPO is facing a huge competition
majorly from apple iOS & blackberry.
iii. Only Huawei compete with OPPO’s selfie camera because
no other smartphone has too much strong camera.

 INDUSTRY ANALAYSIS:
Now a days OPPO become one of the best mobile technology company in the
world. Due to fast growth of OPPO, In ranking OPPO become 3 ed largest company
in mobile technology industry.

Total market share


Huavei
10%
Oppo
7%

Apple others
13% 47%

samsung
electronic
s
23%
 SWOT ANALAYSIS:

Strength Weakness
SWOT
Opportunity Threats

 Strengths of OPPO:

Strength are generally the core competency of the business. Newer


& better, Brand building, Quick market capture, Price point &
celebrity marketing is the main strength of OPPO.

 Weakness of OPPO:

The weakness off OPPO is


Competition, User interface, Poor Sale Support, Quality is Poor.
 Opportunity for OPPO:

5G Opportunity & Flagship products are the opportunity of OPPO.

 Threats for OPPO:

Competition & low barrier entry is the main threat for OPPO.

COMPETITION:
Every company face two type of competition direct & indirect. In case of OPPO the
competition is described below.

 Direct competitors:

 Indirect Competitor:
It is the conflict between vendor whose product or service are not same but can
satisfy the same consumer need. In case of OPPO, High image quality is the main
feature of OPPO so Cannon is the indirect competitor of OPPO V5 because
Cannon camera also provide high quality images.

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