In the recent times, India has emerged to become one of the most attractive markets for mobile phone manufacturers. With a huge population, India possesses a comparatively high teledensity of 74.50 (according to the latest report published by TRAI on 12th March, 2014). Of the overall teledensity, Wireless forms a major part with a teledensity of 72.18. With a total of 893 million wireless subscribers, India has attracted the focus of all the major mobile phone manufacturers, considering an addition of 7.02 million wireless subscribers every month, on an average. On the other side, one can notice the decline in the number of Wireline subscribers which has reduced by approximately 0.17 million subscribers every month on an average. All these numbers clearly points out to the abundance of growth opportunities in the Indian mobile phone industry pertaining to almost all economic and social sectors. In the past decade, the Indian mobile phone industry has seen the entrance and growth of many global players including Apple, Samsung, Sony, LG etc. Not only the global players, but many new Indian players have entered the industry recently, including Micromax, Karbonn, Videocon, etc. The industry has moved on by leaps and bounds in terms of technology and competition. From the times when Nokia was a dominant player in the market capturing an extremely high market share, we have seen many new entrants providing a healthy competitive landscape with players like Samsung, Sony and HTC
As such, The particular consideration in the advertising plus the imagination in the general public include grabbed by it. During the last few years,Cell phone devices have received dramatical increase as well as there are at present close to a pair of billion dollars usersworld-wide. Indeed, in many formulated countries, cellular phones are getting to be an essential company deviceas well as a part of everyday life, as well as in many creating countries, cellular phones tend to be easily supplantingantiquated wireline
- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.
India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
smartphones, first dual-mode GSM/ WiMAX phone, first 3G Android phone, and first 4G LTE Android phone. Also, HTC Sense, launched in 2009, was a momentous breakthrough that revolutionized the mobile phone experience. Consistent innovative product launches also enhance the visibility of the company 's brand. The company 's significant R&D capabilities gives it’s a competitive edge to reach the market first with many industry leading innovations and features. Strong relationships with industry leaders The company has strong relationships with many technology companies and telecom service providers. It maintains strong long-term partnerships with technology industry leaders, including Microsoft, Google and Qualcomm, which serve as active labs of research and development and product evolution. For instance, HTC 's launch of the world 's first Windows Mobile smartphone and first Android smartphone is an example. These partnerships ensure that the hardware, software, and content management and delivery systems are united in seamless and intuitive ways. HTC 's products are currently sold through major carriers and local retail channels in major markets in Europe, the Americas and Asia.
1. The Smartphone industry is a well established market and the threats of a new entrant is low, as technology needed to rival the devices already available is quite advance if they want to differentiate from them
Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from
In this paper we have analyzed this mobile telecom industry on the basis of its customer, competitors, industry perspectives, environmental
Since the start of the 21st century, there has been a huge development in the mobile data market. TThe quantity of clients and the interest in wireless services has increased. This, as well as the infiltration of mobile services has surpassed that of the power network. There are 48 million individuals on the planet who don 't have electrical power at home but then have cell phones. According to ITU estimations, web customers expanded to be around 2.7 billion towards the end of 2013, around 40% of the total populace, though mobile cellular users are near 7 billion, with the mobile broadband being the most dynamic market with 2.1 billion subscribers. This extraordinary surge of mobile data traffic in the cell business has encouraged communications administrators and specialists to incraese both the achievable throughput and the spectral efficiency (SE) yet have overlooked the venergy consumption factor and
Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.
During the last few decades, wireless usage has become essential. The world has become mobile and having instant access to information is in high demand. As a consequence, communication among wireless devices requires higher coverage and flexibility (Frattasi 2010). Another consequence is the new market mobile technology has created, a market where new smartphones are released every year. The list of smartphones that fail in the market is long. In October 2015, fifty-nine smartphones were released to the market out of those fifty-nine phones only two companies dominated the market Apple and Samsung. Hotfi counts with high coverage and flexibility, and being an Apple product counts with the brand
The Indian telecom sector has evolved over the last two decades significantly. Before the economic liberalization in the 1990’s, it was the state run service providers BSNL(Bharat Sanchar Nigam Limited) & MTNL(Mahanagar Telecom Nigam Limited) who had absolute monopoly in this sector. Landlines used to dominate the Indian telecom space. Mobile phone users were very few and they were mostly from the ultra rich and the elite segment. Call charges were extremely high which kept the ordinary people outside the purview of the telecom service. It was the economic liberalization which opened the floodgates for private and foreign investments in the Indian economy in almost each and every sector and the telecom sector was also not untouched by it. It brought the private players into the telecom space and created a fierce competition which resulted in an ideal atmosphere for the diffusion of the telecom services among all classes and segments. It was the trigger for the subsequent telecom revolution in India which ultimately resulted
India was lucrative since the Indian handheld market is booming and slowly becoming one of the world’s biggest and fasted growing markets. There being a lack of certain technology, gives HTC the opportunities to fill new market gaps. The company’s products are standardized for the global market, while strategies are adapted to respected countries. HTC seems to be efficiency seeking when looking especially at the Indian market. HTC is selling phones globally and in India they are trying to succeed through International Specialization. The company was benefiting at first, from the lack of top of the line mobile phones in the Indian market. Its future strategy is to keep this trend going. The company is trying to take over the top and middle class mobile phone market in India by being the first to offer the latest and greatest technology available and ignoring the lower class mobile market. It managed to do so already by introducing the first fully touch phone and fully Android powered phone.
It is important to have a strategy when making a product. Phones are used for various reasons. The different features, applications, and software will need to suit the consumers need.
Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.