This report investigates the smartphone industry in the United Kingdom and Germany between 2007 to 2015. I will identify which country is performing the best for the industry and will make a recommendation on which country the business start-up in. I will consider the industry by comparing the companies with the country’s market and state which one had done better. I will explain which PESTL factors influenced the industry for both countries and will explain why the economic recession impacted the industry.
Along with the times, the sophistication of the technology gadgets increasingly hounded by the public. Gadgets that are selling well in the gadget world market today are the smartphone and tablet. Because both devices are the current market trends, mobile phone vendors are also competing with competing to provide the mobile device, be it a smartphone or tablet also with the best quality. With
There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).
Today, Smartphones encompass wide range of devices, ranging from voice-centric handsets to converged multimedia devices integrating cameras, media players and personal navigation functionality into a single unit. Handset manufacturers gradually adopt OS to reduce development time and costs for the new models. Market size of Smartphones has grown from less than one million units in 2001, to more than 100 million units in 2007 already.
In the opinion of Baumol and Blinder (2011, p. 235), "monopolistic competition is a market structure characterized by many small firms selling somewhat different products." The authors in this case further note that the output of each entity is small in comparison to the market's aggregate output of competing but closely related products. With that in mind, the mobile phone market exhibits some key characteristics of monopolistic competition. In this market, customers in need of mobile phones are presented with a wide range of options to choose from. For instance, a customer who enters a mobile phone handset shop has the option of purchasing a Motorola, Nokia, Samsung, Blackberry or even an LG handset. All these products despite being closely related are also largely differentiated. As Tucker (2010, p. 268) notes, "the key feature of
Competition in the smartphone world is quite aggressive to say the least. With numerous players, differentiated market segments and shorter product life cycles. This essay will look at the position of the market, the level of competition amongst the major players in the smartphone world, and the economic advantage Samsung possess. Further, it will seek to define who is in the greatest position now to lead the smartphone market moving forward. Samsung will need to continue to gain profit while simultaneously maintaining sustainability and innovation through the proper management of: planning, leading, organizing, controlling, and innovation.
Overall the market has become saturated and is unattractive for new entrants but there is still a huge scope for existing market players like Nokia to capture market share by focusing on rapid innovations and marketability of smart-phones with the use of its pioneer brand image.
* The fast shift of the mobile device industry and the fierce competition (especially from Samsung) may force a company out of business in a few years.
In addition, companies such as apple and Google should not relax. As with Nokia in the mobile industry, these companies will lose their leadership position while acknowledging steps they can take to prolong their success. First, companies must continue to innovate and invention in order to improve the opportunities for the emergence of highly sophisticated technologies from within. Second, big companies should keep a track record for creators and big companies should work with innovative start-ups. Finally, successful companies must innovate continuously. They should not be afraid of imitation. If Nokia immediately develops its products like iPhone, it will not reach that
The device commonly regarded as the first to realise widespread success in the smartphone market was the Blackberry. However the handset, referred to as the ‘crackberry’ (Middleton, 2007) after the feeling of addiction many users felt towards it, was quickly joined in the market by companies such as Apple and Samsung. The intriguing market seems to be constantly evolving and is still an emerging market subject to multiple market forces. Many economic theories can be applied to this market including Monopolistic Competition, Platform Competition along with Network Effects and Tipping Points. The market has seen the evolution of smartphones from a keyboard based device with closed operating systems into thin, touch
Technology is a huge impact on society. It shapes the way people talk, work, and study. They can also change our perspective on life. However, the most influential change that came across the world is cell phones. They are one of the most valuable electronic devices that made it easier for people to communicate with another person. BlackBerry is the prime example of expanding the cellular universal. It changes the way people are using cell phones due to its high quality features. However, the BlackBerry company did not always have a perfect way of being managed and market internationally. They have had to deal with issues that affected them. Furthermore, there has been a case study about BlackBerry’s business aspects. It is called “BlackBerry
Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.
The product that I have selected will be in the telecommunication arena. There are four major companies that compete for exclusivity for marketing purposes over my elected product of Apple product/s. There is one major competitor to my product and that would be Samsung and Sony, however, the smart-phone is no comparison to any other phone in my era to date.
However, the existence of big players in the software industry such as Google and Microsoft may pose a credible threat at entering the cell phone market and trying to carve a niche.
EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product