Threat of new Entrants – Low The Consumer Technology Industry sets difficulties for new entrants to the market; therefore it suffers relative low threat of new entrants on to compete with market share. This type of industry sets a hard entry barrier for new consumers to compete with existing and well established companies such as Apple Inc., Dell Computers and Sony, who operate with use economies of scale and product differentiation to compete between each other. The technology industry is a difficult industry to penetrate if one is looking to start a small business. It requires great amount of capital invested for manufacturing, research and development and high labor force to operate the machine in order to increase production, on a goal to matching production of bigger firms. Companies like Apple Inc., Dell and Sony take advantage of multinational resources and transfer production to other countries where they are able to achieve greater production amount, for a lower cost, and also where labor is relevantly lower than in the United States. The advantage of this is reaching a lower cost of goods once it hits the market, promoting competition and higher returns for these mega companies. In order to achieve economies of scale, a great amount of capital requirement in necessary. These large corporations run on great amount of self-operated and man-operated machinery that requires great investment to be built, operated, and serviced. Also to design the machinery a highly cost of engineers, developers and a specialized team of builders is required to build for the exact purpose required. Government policy may also be a threat to new entrants since licensing and product quality are highly enforced in these companies. All of the technology companies are enforced to offer warranty on their products. Warranty gives the peace of mind to customers that the product