While all goods have a general purpose of satisfying the wants and needs of people, specific types

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

Despite however person thinks, the world is divided between people who think how useful the cell phone is and what the cell phone change our life to the best and help us at our work and make the communication easily between people so it develops our society the other people who are convinced that it damages our life and decrease the social interaction comparing to the past.

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.

Ashley started the discussion by explaining Lee and Kreutzer's (1982) analysis of network effects. According to Lee and Kreutzer, network effects is when the attractiveness or value of the product to buyers increases with others' use of the product. A few examples from the text are; telephones, fax machines, and computer software. (Lee & Kreutzer, 1982) Using telephones as an example: If I bought a telephone, that telephone would be useless unless someone else bought one. The value of

Now a day everyone have a phone that he can communicate with anyone around the world, whatever if its '' I phone or Black berry'' ,there's a huge difference between the shape and interior of the '' I phone and Black berry'' all that because everyone are from a different company that it created to the client also for the uses itself for their own needs. So, in my research I will Mention four different ideas, the phone shape, interior, companies, users.

The constant technology environmental changes have changed the way companies operate and consumers purchase products. Companies must stay abreast of new ways to advertise their products and make service fast, efficient, and reliable. Consumers are now looking for ways to order and pay for products with ease thru the use of apps, and smart phones. If companies do not fit their product in some form in the palm of the consumers hand thru their phone they will

Those three values adding sources often work together to reinforce one another in a way that makes the network effect even stronger.

Networks through Information Technology can provide information on many aspects of business, some may include: technical support, information on competitors activities and business market trends, even social media.

hence each user joining the network would add value to it (Network Effects) which in turn makes the

In today’s society cellular devices are not only popular in the United States, but in many other countries worldwide. Not only do cell phones contribute to one’s personal life, but business use as well. Most people have hectic lives, and using a device to help schedule appointments, send out mass text messages, or even remind you to call back your boss, is unimaginably convenient. Cell phones within the past five years have reached mile stones compared to the phones used back when cell phones were first invented. Even though there is still a diverse range for cell phones on the market, the two most popular brands seem to create an argument on choosing the right phone, Apple and Android. Each with impressively fast processors, and new

Currently a relationship exists between two cell phone models (Alpha and Beta) that will need some serious realignment. To decrease (Beta) and produce more of the (Alpha) model would involve sacrificing profits that could have been made on the more profitable model but also losing the contribution the Beta model made to cover the fixed costs at the factory. This reflects a key principle of opportunity costs.

When we look at monopolies in today’s current market in the telecommunications industry, many people fear that AT&T will overtake the landline communications market and cause higher prices for all consumers. There are rules that prevent AT&T from telling smaller landline companies that connection exchange rates on the lines will double or triple if they go over AT&T owned or leased lines. This would cause AT&T to monopolize the market if they were allowed to do this because it would cause higher prices and eliminate competition in the market.

This analysis will focus on the smartphone industry given that the global market, in terms of the major players involved and on the dynamics of the smartphone industry and the factors, that affects the change over the conditions of competition.

advantage of network economics. A virtual company strategy uses networks to link to other firms so that a

This industry relies very heavily on the performance of each other, making each stakeholder complements to the other. As each part of the ecosystem improves, it positively affects the industry as a whole. Mobile carriers gain revenues from intensive use of data, thus allowing carriers to capitalize on the ARPU rather than selling phones at a high margin. As more smartphones are bought as bundles with carriers, chipset and handset manufacturers would also directly benefit from the increase in data sales. Similarly, software providers and application developers would have the opportunity to reach a large audience by integrating their creation into these devices. Thus, it is a cycle where the success of one would entail the success of another in the ecosystem.