Supplier power is high for iPods because buyers have few choices of whom to buy iPods from. In fact, they should have to buy it from Apple authorized iPod retail store/online store. We can ignore auction sites like eBay here for the sake of argument. We can, if we want, buy a Mercedez Car from eBay, but that deosn’t necessarily make eBay the best place to buy Mercedez Car from. Supplier power is low for Walkmans because customers can buy different Walkmans from different manufacturing companies as there is a plethora of them out there.
For iPods, threat of substitute products or services is low whereas it the exactly the converse for Walkmans. iPods doesn’t have any suitable alternative right now, though there are other mp3 players as well, but feature wise it still has the competitive edge over other mp3 players. Threat of substitute products or services is high for Walkman as portable mp3 players itself is a threat which to be honest has made the Walkman in today’s world, obsolete.
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