...Problems being faced by mobile market - The interconnected nature of several network providers can become an issue for pricing systems and even for consumer choice. Several service providers in fact rely on each other for network coverage and capacity. Whilst it is also unknown to many that some network providers are in fact owned by larger scale ‘competitors.’ An example that exemplifies this situation is the ownership of Virgin Mobile Australia by Optus, and 3’s use of the far-reaching Telstra network. - With ownership of mobile phones steadily becoming more of a necessity than a lifestyle choice, customers are often confronted with the sometimes confusing issue of contract plans, prepaid options, and purchasing a mobile phone outright which would not involve the use of a network provider at all. The fairly modern release of the Nokia N-series, prompted high demand despite outright ownership of the mobile phones originally being priced sometimes upwards of $1000. Inexperienced and unknowing customers soon found this original payment was coupled with high coverage fees. This led to a quick reduction in demand. The ‘big players’ of the mobile phone market must quickly learn to adapt to the changing environment and nature of demand, and price their equipment accordingly. - The market saturation of the Apple iPhone is a huge issue for competitors where reducing their pricing levels can have very little or even no effect on their product as consumers place such a high value...
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...UNDERSTANDING BUYER BEHAVIOR PRODUCT SELECTED: MOBILE PHONES DATE OF SUBMISSION: 16th AUGUST 2012 TEAM MEMBERS: ROLL NUMBER: AJITESH MEHTA 2012PGP019 HARSHIT JAISWAL 2012PGP130 NITIN VERMA 2012PGP233 RASHMI SHUKLA 2012FPM014 ROHAN GOEL 2012PGP310 RUDRASHIS ROY 2012PGP318 TAKSANDE NIRAJ GAUTAM MAYA 2012PGP398 INTRODUCTION Since the sample size was restricted to three people (3 mobile phone users), we preferred to have all three users belonging to the same group i.e. all students in order to identify some trends to helps us to form a focused marketing strategy. We selected students because they form the largest occupational group of mobile users. They are more tech savvy and consider mobile phones as style statements. Survey Sample Size: 3 Basic information 1 | Name | Aniket Harjai | Palak Mahanot | Ankur Jain | 2 | Gender | Male | Female | Male | 3 | Age | 22 | 21 | 24 | 4 | Occupation | PGP Student | PGP Student | PGP Student | 5 | Phone Model | Samsung Galaxy Note | Blackberry Bold | Samsung Guru | 6 | Date of Purchase | June 27, 2012 | August 02, 2012 | July 11, 2012 | 7. Major triggers of purchase: 7.1 | Need for Communication | 4 | 5 | 5 | 7.2 | Peer Pressure | 5 | 3 | 0 | 7.3 | Social networking on the go | 5 | 4 | 0 | 7.4 | Entertainment-games, music, videos | 5 | 2 | 2 | 7.5 | Getting mails as they come | 5 | 3 | 0 | 7.6 | Camera, music player and phone | 5 | 5 | 0 | 7.7 | Staying updated with...
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...2009 Joseph Omotayo Oyeniyi, Joachim Abolaji Abiodun 111 SWITCHING COST AND CUSTOMERS LOYALTY IN THE MOBILE PHONE MARKET: THE NIGERIAN EXPERIENCE Joseph Omotayo Oyeniyi, Joachim Abolaji Abiodun Abstract Switching cost is one of the most discussed contemporary issues in marketing in attempt to explain consumer behaviour. The present research studied switching cost and its relationships with customer retention, loyalty and satisfaction in the Nigerian telecommunication market. Based on questionnaire administered to customers in the mobile telecommunication industry; the study finds that customer satisfaction positively affects customer retention and that switching cost affects significantly the level of customer retention. However, the effect of switching barriers on retention is only significant when customers consider to exit. Oyeniyi O. J., Abiodun A. J. - Switching Cost and Customers Loyalty in the Mobile Phone Market: The Nigerian Experience 112 Business Intelligence Journal January Introduction Switching costs are costs that are incurred by buyers for terminating transaction relationships and initiating a new relation. Porter (1980) defined Switching cost as a one time cost facing a buyer wishing to switch from one service provider to another. Jackson (1985), however, defined switching cost as the psychological, physical and economic costs a customer faces in changing a supplier. Jackson’s definition reflects the multi-dimensional nature of...
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...Competition in the Mobile Phone Markets of the United States and Europe International Business Master's thesis Mika Husso 2011 Department of Management and International Business Aalto University School of Economics AALTO UNIVERSITY SCHOOL OF ECONOMICS Department of Management and International business Master’s thesis ABSTRACT ANALYSIS OF COMPETITION IN THE MOBILE PHONE MARKETS OF THE UNITED STATES AND EUROPE Competition in an economic context is a widely studied phenomenon with a significant body of accumulated research and theory. However, competition in the mobile phone industry, despite its prevalence in public discussion, has received significantly less attention in academic research. Within the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone markets are fundamentally...
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...critically evaluating the statement, “The recent price wars in the supermarket and mobile phone industries have been beneficial to both consumers and their respective industries” by using various theoretical models. For this, we will also consider various microeconomic models such as Supply, Demand, Market equilibrium, Price discrimination, Opportunity cost. In the other part of assignment, we have critically evaluate the statement, “The cost of mobile phones have fallen to such a level which, if this trend continues ,would make mobile telephony more affordable to much larger segments of the emerging markets population” using various macroeconomic models such as Growth, Inflation, Unemployment, GDP. By definition, macroeconomic models are defined as the analytical tools designed to describe the operation of the economy. On the other hand, the microeconomic models are tools used to describe the behavior of individuals and small organizations in decision-making (Laberge, 2003). The research methodology used to formulate this essay is qualitative in nature. Various secondary resources have been referred including case studies and published & unpublished articles while writing this essay. These secondary resources might have some errors which can reflect in the essay. Hence, credibility, reliability and validity of the information need to be considered. Part 1: Price war is a concept used commonly in markets and arises due to rigorous competition between two or more companies (Laberge...
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...electronic manufacturing companies in the world. This is a Korean conglomerate business. Their mobile phone manufacturing holds the number one position according to the sales unit as at third quarter in 2013 (Gartner Inc. 2013). Samsung mobile have both Smartphone’s as well as featured phones. Samsung Smartphone leads the Smartphone sectors as well holding 32.1% market share. Their main competitors are Apple in Smartphone and Nokia in featured phones. Samsung Mobile highly trusts on innovations and they have introduced many innovative ideas to the mobile phone users. Their latest innovation is the Galaxy Round, a Smartphone with a curve screen. The business philosophy of Samsung Corporation is very simple and their goals include creating the best products and services and contributing the society. Purpose of the Study Customer of mobile communication largely looked for new applications to match their demand for high data range, complex applications and switch between complex network solutions. Mobile phone manufacturers are highly investing their money on research and development activities, human knowledge and creativity and intellectual assets to develop innovative solutions to enhance consumers’ expectations competitively. They have experienced that consumers always prefer new product designs with innovative ideas. Therefore, investigation of the impact of innovations on the market share will be a vital aspect of the organization because this will enable them to effective utilization...
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...Why Not Now Smart Device & Mobile App Store Boise’s Best Cell Phone Store-Final Draft Alicia Young Keller Graduate School of Management Marketing Management-Section 61681 December 15, 2013 Table of Contents 1.0 Executive Summary………………………………………………………………………....3 2.0 Situational Analysis Overview……………………………………………………………...3 2.1 Market Summary……………………………………………………………………………5 2.2 SWOT Analysis……………………………………………………………………………...6 2.3 Competition………………………………………………………………………………….7 2.4 Product Service Offering……………………………………………………………………8 2.5 Keys to Success………………………………………………………………………………9 2.6 Critical Issues……………………………………………………………………………….10 3.0 Marketing Strategy Overview……………………………………………………………..10 3.1 Mission………………………………………………………………………………………13 3.2 Marketing Objectives………………………………………………………………………13 3.3 Financial Objectives………………………………………………………………………..15 3.4 Target Markets……………………………………………………………………………..17 3.5 Positioning…………………………………………………………………………………..18 3.6 Pricing Strategies…………………………………………………………………………...19 3.7 Market Attack Strategy……………………………………………………………………22 3.8 Marketing Research………………………………………………………………………..24 4.0 Controls……………………………………………………………………………………..27 4.1 Progress Milestones………………………………………………………………………...27 4.2 Market Organization………………………………………………………………………28 4.3 Contingency Planning……………………………………………………………………...28 5.0 Conclusion…………………………………………………………………………………..29 References………………………………………………………………………………………30 1.0 Executive...
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...INTRODUCTION A mobile or cellular telephone is a long-range, portable electronic device for personal telecommunications over long distances. Few years back cellular phone used to be a status symbol and great luxury only accessible to elite class which has now become an affordable necessity even for common people. The initial mobile phones were expensive, bulky with limited operational capability. The new innovative features of mobiles, convenience of use, affordability of mobile sets as well as services has resulted in the number of subscribers to mobile networks growing at a rapid rate on a worldwide basis. Due to the growing competition, Cellular companies are spreading their network throughout Pakistan even to remote areas at competitive and affordable rates. Mobile phone sector of Pakistan is continuing to show excellent growth trends with more than 40 million subscribers and 23.1 % mobile-density. Currently 29.32 percent population of Pakistan has the access to telecommunication services. One of the prime drivers of this growth has been a balanced cellular regulatory regime which facilitated not only growth of mobile services but also lowering of prices. Due to sky rocketing growth in telecom industry in the short span of time, both mobile service providers as well as mobile manufacturing companies are in great competition. WORLDWIDE INDUSTRY The mobile phone industry in the past decade has become one of the largest and fastest growing industries in the world...
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...The strategy of the mobile phone industry: A comparative analysis of Apple, Sony, Xiaomi The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi I Executive summary The paper sheds lights on the strategy of three mobile phone industry and that task is to perform comparative analysis on Apple, Sony and Xiaomi. The author has first started with the analysis of the macro-environment using strategic analytic tool called PESTLE. The author has used tools such as Porter’s Five Forces and SWOT to analyze the micro-environment of a mobile phone industry and define Key Success Factors that are essential to be included in company’s strategy. Moreover the paper characterizes the comparative analysis such as objectives, strengths, weakness, financial analysis (quantitative), Vario analysis (Qualitative), merger and acquisitions, market share and competitive advantage strategy, of Apple, Sony and Xiaomi. At the end, the author of this assignment has given his recommendation to these three industries and concludes with a set of challenges being faced by mobile phone industry to create and maintain customer values and profit margins for present and future business successes. The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi II Table of Contents LIST OF ABBREVIATION ..................................................................................................................
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...OF SMART PHONES SUBMITTED BY: MBA(IB)- Section F Richa Bhalla- A1802010121 Udai Bir Bhasin-A1802010332 AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR PRADESH ACKNOWLEDGEMENT Every endeavor in itself is an impression of the efforts of not only those who pursue it but of those as well who provide guidance and motivation towards its successful completion. Likewise, this project bears an imprint of all those who helped us at various stages and it would be unfair on our part not to thank them. The successful completion of this project could not have been possible without the co-operation and encouragement of our Class Mentor and Faculty, Mrs. Kokil Jain and Mrs. Meenakshi Malhotra who provided us with their unending support from the very beginning of the project, which helped in the timely completion of the project. The faculty members at AIBS, who continued to have an impact on our thinking which helped us to complete this project. And all other staff members at the institute. Richa Bhalla Udai Bir Bhasin INDEX S.NO. | PARTICULARS | PAGE NO. | 1. | Executive Summary | 4 | 2. | Introduction | 5 | 3. | Difference between a Smartphone & Feature Phone | 7 | 4. | Indian Telecom Industry | 8 | 5. | SWOT Analysis of Mobile Industry | 12 | 6. | Low-Priced Segment of Mobile Phones | 13 | 7. | Market Structure & Segmentation | 15 | 8. | International Business | 20 | 9. | The Case of Micromax | 26 | 10. | The Case of Karbonn Mobiles | 30 |...
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...Export Department Country Analysis Report for International Expansion Market Analysis for: Brazil, China, Russia, South Africa, and United Arab Emirates ------------------------------------------------- ------------------------------------------------- Contents 1. Foreword 2. Evaluation Criteria 3. Country Analysis – Demand Factor: Population 4. Country Analysis – Demand Factor: Number of Subscriptions and Percentage 5. Country Analysis – Demand Factor: GDP per Capita and Growth Prospective. 6. Country Analysis – Cost Factors 7. Country Analysis – Sociopolitical Factors 8. Conclusion - Best Country for Potential Entry 9. References ------------------------------------------------- 1. Foreword Hydis Electronics currently has the highest market share of mobile phones in South Korea. We have been focusing heavily to reach the status of market leader in our domestic market, but the Korean market for mobile phones has reached a plateau and our growth has been slow during the past few quarters. As such, we should now focus our strategies on expanding to foreign markets as a new engine for our company's growth. Possible candidate countries for entry were Brazil, China, Russia, South Africa, and United Arab Emirates (UAE). The goal was to figure out which country would have the highest potential profit as well as future growth for our company while having low risk involved. Upon careful analysis of the economic...
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...cell phone companies who follow a particular customer driven marketing strategy, which can be considered as a model for other company. Nokia segmented the market of world according to their economic condition and then try to targeting as much as they can. Suppose, Nokia itself launch varieties models of mobiles at varieties prices and positioning itself as more for more, the same for less and less for much less. They also try to bring their product differentiation, service differentiation provide new classic models, features and long lasting batteries. We hopefully say that, this particular customer driven marketing strategy should be widely followed to achieve the unified whole. 2.Introduction The company I have chosen to analyze in my assignment is the mobile phone giant Nokia. This assignment tells us briefly what Nokia actually is, its Customer driven marketing strategy, how they create value for target customer view on the size and sales of the company and also the Various Market segmentation Strategies, target market strategies and differentiation and positioning their products to desired market with customer satisfaction. Since January 2004, Nokia Group has consisted of four different business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks. “In addition, there are two horizontal groups that support the mobile device business groups: Customer and Market Operations and Technology Platforms.” In the year 2004 Nokia’s net sales for mobile phones...
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...Kevin Winters Five Forces Article Assignment T-Mobile Turns an Industry on Its Ear The article I found relating to Porter’s Five Forces was about T-Mobile and how their rejected merger with AT&T has caused them to go against many of the previously accepted practices of the mobile carrier industry. This started in 2011 when the Federal Communications Commission and the Justice Department blocked AT&T’s proposed $39 billion acquisition of T-Mobile. After the deal was called off, AT&T owed T-Mobile a breakup fee worth $3 billion in cash and $1 billion in rights to wireless spectrum which has allowed to T-Mobile to expand their service to better compete with the three other major carriers. Since the failed merger, T-Mobile has become an agitator in the industry and has said they want to eliminate every pain point for consumers in the industry. One of the major issues in the mobile carrier industry is how much the four major carries (Verizon, AT&T, Sprint, and T-Mobile) have started to dominate the market, making it hard for smaller companies to penetrate the industry. Consumers have a strong brand loyalty towards the major carriers because of how much better their coverage and service compare to smaller firms in the industry. Smaller firms cannot expect to have the capital to match the network size of any of the four major carriers which can be a major deterrent for customers switching to their carrier. These four major carriers hold an absolute cost advantage...
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...Nokia Company Company’s history: The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production.In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today. The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable. After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day. Toward the end of...
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...Serv Bus (2012) 6:265–278 DOI 10.1007/s11628-012-0135-0 EMPIRICAL ARTICLE Innovation and imitation effects in the mobile telecommunication service market Sang-Gun Lee • Byeonghwa Park • Si-Hyeon Kim Hong-Hee Lee • Received: 11 February 2011 / Accepted: 26 January 2012 / Published online: 15 May 2012 Ó Springer-Verlag 2012 Abstract This study investigates adoption patterns of the first mover and the followers in the Information and Communication Technology industry. The continuous behavior of adopters over time is difficult to analyze and most previous studies were cross-sectional rather than longitudinal. In order to overcome these limitations, a mathematical diffusion model with verified official time-series data is used to analytically investigate the impact of both innovation and imitation effects on the mobile phone adoption in South Korea. The results showed that the imitation effect of the first mover was larger than those of the followers in the mature mobile telecommunication services market in South Korea. The innovation effect of the follower was larger than that of the first mover, and the innovation effect was larger than the imitation effect in the market. Keywords Innovation effect Á Imitation effect Á Diffusion model Á Mobile telecommunication market S.-G. Lee Department of Business Administration, School of Business Administration, Sogang University, Shinsu-dong #1 Mapo-gu, Seoul 121-742, Korea e-mail: sglee1028@yahoo.com B. Park College of Business Administration...
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