Wireless Market Is Marked By Strong Competition

industry covers services and platforms with a vast variety of focal markets. The portion of the

The industry I’ve selected is the cellular phone service industry. This industry’s market structure is an oligopoly, meaning that a few large firms control the market. Four main firms, T-Mobile, AT&T, Sprint, and Verizon dominate the cell phone service industry. Although the four firms compete against one another, they typically avoid price competition in order to avoid price wars that decrease profits for all. Instead, they use other tactics, such as advertising and improved customer service to gain a higher demand in the market. Price wars occur due to the interdependence of firms involved in an oligopolistic market structure. A decision made by one firm to increase or decrease prices will lead to a fluctuation of the demand curve for the

For Verizon to compete with the other top contenders they must focus on advertise and marketing their services and “new” products to survive in an Oligopoly industry. Most consumers who buy from an oligopoly firms relate through media, TV, radio, magazines and billboards. Some of the oligopoly challenges could be pricing problems, this is what is called a kinked demand curve.

The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.

Wireless network infrastructure has become just another connection method for corporate and home users alike. This rapid acceptance can be attributed from:

The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies

The fastest growing wireless industry is text messaging. This also reflects the earlier comment that demand for messaging far exceeds supply, therefore driving prices up. Even though it costs less to transmit a text message than data, it is still seen as a very low cost to the average customer. The customer feels like they are getting a good deal because they are using the text messaging more than the data

People could now go to a cheaper company with the same network they could pay less. This also means that even more people are starting to join T-Mobile. T-Mobile is getting bigger and better. T-Mobile shows this in offers and network upgrades and lower

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

The first marketing opportunity that will be chosen to meet the demand in growth of overall business all across metropolitan Brisbane and as well as other parts of Australia would be mobility business, which encompasses the help of mobile apps and mobile webpages and desktop apps and desktop dedicated pages to online commerce of the business to be visible and appealing to the customers all around. They cannot just live by having a website and no online store in this modern day and age where everything from a small pin to an aircraft is being traded online. Most successful business people know where they fit in.  It’s important because knowing what you have to offer determines how you approach the business.  And one of the early questions for the business starter is one of growth: most of the small companies that get noticed in the media are of the fast-growing variety.  But fast growth also means higher risk – the cash flow

Opportunities: international market; co- operation with other bigger companies; launching of the new products; increasing tendency of the customer demand etc.

In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.

The Markstrat world has a population of 250 million people. Through Year 4, the Sonite market consisted of 1.67 million people with an expected growth rate of 53% over the next five years. In order to meet the needs of consumers in the larger growing segments, Company U has developed two products in the Sonite market: SUSI and SULI. SUSI is the lower quality offering, marketed towards Singles and Others who are the most price-sensitive. Others and Singles are projected to have the highest growth rates over the next five years, at 98% and 86% respectively. This is Company U’s target market for SUSI and sales are forecasted to almost double in each segment through Year 10 (Table 1 and Chart 1). SULI is the high quality electronic offering, distributed primarily to Professionals and High Earners who are driven by performance and convenience. Market Share for both Professionals and another market segment, Buffs, are expected to decline through Year 10. The Vodite market currently consists of approximately 200,000 people with an expected growth of 200% through Year 10. The Followers segment of the Vodite market is projected to have the largest growth over the next five years at over 3300%. Company U introduced a Vodite, VUGO, in Year 5 to initially target the Early Adopters segment in turn creating a strong foundation to penetrate the Followers segment through Year 10 with predicted long term sales growth of 17%.

     In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,

|the industry and its challenges it is important to understand its various phases of growth so far. |