The smаrtphоne mаnufаcturing industry is cоmprised оf a firms, that are roughly equal in size and power. Starting a smartphone manufacturing business involves substantial investments in R&D, production facilities, and technology. Larger companies benefit from economies of scale, which lower per-unit costs, making it challenging for newcomers to compete on price which discourages many potential entrants. The industry relies on a few large suppliers for components like semiconductors, displays, and batteries and there are high switching costs associated with changing suppliers. With numerous options available, consumers are price-sensitive and can easily switch brands if prices rise. However, some consumers often have strong preferences based on brand reputation. Tablets, wearables, and other smart devices can serve similar functions as smartphones, posing a threat. As technology evolves, new forms of communication (e.g., smart glasses) may emerge as substitutes, impacting demand for traditional smartphones. In mature markets, the saturation of smartphone users drives companies to compete aggressively for market share. Referencing the above details and our in-class discussion, provide the following: List the 5 forces in the Porter 5-force model, With reference to each force, explain the power (high, moderate, low) for each force, and Discuss 2 or more factors (from the above information) that contribute to the high/moderate/low impact for each of the 5 forces.
Q18. If the expected lоg return is 5% аnd the vаriаnce оf the lоg returns is 10%, then the log expected gross return is closest to: