Marketing management assignment report writing analysis Help on: Modern Technology
EXECUTIVE SUMMARY
With the enhancement of modern technology in mobile phones, the mobile phone industry is managing a sharp growth. With becoming a basic necessity, mobile phone industry is growing at a rapid pace. The introduction to 3G technology in mobile phones has also changed the trend in the mobile phone industry. 3G mobile phones will allow the end user flexibility and deliver multiple services using different bandwidths. Bluetooth and 2.5G technologies will also be available soon supporting 3G mobile phones in the delivery of wide range of services. This increases buyers and increases market size worldwide.
The report is a feasibility analysis of mobile phone industry, which incorporates mobile phone developers as well as mobile phone service providers. The report includes the external environment characteristics, Porter’s Five Forces of Competition, driving forces of the mobile phone industry, analysis of competitors of mobile industry in Australia, the ease entry and exit into the mobile phone industry, and the overall industry outlook of Australia.
MARKET OVERVIEW: MOBILE PHONE
The mobile phone market has become a perfectly competitive market over the years with the enhanced feature mobile in minimum cost. With advance technology and communication sector many companies are competing with each other so as their success can take over the mobile phone market as a market leader. The market is perfectly competitive because the market has free entry and exit conditions and they offer products and services with different physical attributes and different costs, where buyers have choices to choose from. The main strategy of ever company is to provide the best products and services to its buyers by reducing cost and enhancing products, which makes the mobile phone industry perfectly competitive.
The mobile phone industry has is an attractive market, where customers are already using the mobile phones as their necessity. The growth and success of mobile phone industry depends entirely on the ability to attract new customers. By adding and enhancing the mobile phones and services, the firm will attract more potential buyers, because technology alone will not attract buyers, instead companies want value-added services for mobile-phone securities.
The cultural shift towards internet-capable 3G and more recently, upgrading mobile voice phones to Smartphone, has created more opportunities in the mobile communication industry. This cultural shift has enabled mobile phone developers to develop and serve internet enabled 3G Smartphones. The introduction to 3G technology in mobile phones has also changed the trend in the mobile phone industry. 3G mobile phones will allow the end user flexibility and deliver multiple services using different bandwidths. Bluetooth and 2.5G technologies will also be available soon supporting 3G mobile phones in the delivery of wide range of services.
ENVIRONMENTAL ANALYSIS
DEMOGRAPHIC ANALYSIS:-
Studies have shown that since 2000 there has been a steady increase in the number of migrant families moving to Australia (Australian Bureau Statistics, 2012). According to Australian Statistics (Australian Bureau Statistics, 2012), of the total population of Australia, about 60 per cent lie between the age group of 15-69 and also 85 per cent of them are over-seas population that arrived in Australia in the past 20 years. Hence, with more and more people moving and settling here, there are more chances of people using mobile phones.
SOCIO-CULTURAL ANALYSIS:-
The cultural shift towards internet-capable 3G and more recently, upgrading mobile voice phones to Smartphone, has created more opportunities in the mobile communication industry. This cultural shift has enabled mobile phone developers to develop and serve internet enabled 3G Smartphones. Moreover, this cultural trend towards Smartphone has increased within the country in conjunction with more generous data caps and increased handset capacity (ACMA, 2012). 3G mobile technology has provided the end user flexibility and delivery of multiple data services using different bandwidth.
ECONOMIC ANALYSIS:-
With the Global Financial Crisis of 2008, Australia has managed sharply its economic health with an average growth of 2.8 per cent in Gross Domestic Product (GDP) for the year 2010. However, with the increase in the number of business failure, credit quality has emerged to be strong in Australia. Unemployment rate has declined to 4.9 per cent in the year 2011 as compared to 5.8 per cent in the year 2009. Employment growth has been strong in the year 2012 and as a result, people of Australia are confident about the future growth aspects and their job aspects.
TECHNOLOGICAL ANALYSIS:-
Technology has been changing its trend rapidly across the globe. The purpose of having a mobile phone, today, is not only for speech but also to deliver data. Advancements have been made to the mobile phones which will carry data at a much faster speed rate. The introduction to 3G technology in mobile phones has also changed the trend in the mobile phone industry. 3G mobile phones will allow the end user flexibility and deliver multiple services using different bandwidths. Bluetooth and 2.5G technologies will also be available soon supporting 3G mobile phones in the delivery of wide range of services.
POLITICAL AND LEGAL ANAYSIS:-
There are many political-legal issues for mobile industry. Every business in mobile industry is required to obtain a license by registering its company name and nature of business under Approved License Authorities. There are labor laws worker safety (Worksafe Australia, 2012) and laws regarding the Australia Pension Plan and Employment Insurance (Service Australia, 2012), which employers must follow (Ministry of Labour, 2012). Taxation, from income tax to the HST has an influence on cost and profit. As far technical advancement is concerned, Australia provides a comprehensive legal framework for the protection of technology and intellectual property rights (Clayton, 2012).
INDUSTRY ANALYSIS
Threat of New Entrants
The mobile phone industry is purely competitive market. Since the initial capital for a mobile phone service provider is extremely high, the threat of new entrants is high. A handsome amount of money is required to be invested to establish a successful operation, and it is difficult for any firm to enter the market since the initial costs of setting up such a business are very high with high competition.
Bargaining Power of Suppliers
The bargaining power of suppliers is low as the suppliers have limited control due to the bulk of orders provided by network operators. Hence, the mobile phone operator dominates over supplier. With the increase of competition in the market, mobile phone carriers seeks to provide new and attractive features to the mobile phones to capture the market, thereby, creating pressure on the suppliers.
Bargaining Power of Buyers
There is a low bargaining power of buyers and customers in mobile phone industry as the buyer and customer can easily switch over from one brand to another by paying a minimum termination fee.
Threat of Substitute Products/Services
The Substitute of mobile phone is a mobile phone having additional features. Many research and studies into mobile phone technology has been taken place. Technology has been changing its trend rapidly across the globe. The purpose of having a mobile phone, today, is not only for speech but also to deliver data. Advancements have been made to the mobile phones which will carry data at a much faster speed rate. The introduction to 3G technology in mobile phones has also changed the trend in the mobile phone industry. 3G mobile phones will allow the end user flexibility and deliver multiple services using different bandwidths. Bluetooth and 2.5G technologies will also be available soon supporting 3G mobile phones in the delivery of wide range of services.
Intensity of Rivalry among Competitors
There are three mobile operators governing the Australian mobile industry market, which include Telstra, Optus and Vodafone Hutchison Australia (VHA). With the merger of Vodafone and Hutchison the market share of the company has dropped to 17 percent while the Telstra captures 55 per of the total market share. Optus shares a stagnant 20-22 per cent of the total market share. On the basis of market share, it is clearly indicated that Telstra is emerging as the leader of Mobile network market (Ben, 2012).
CONCLUSION:
The mobile phone industry has become a perfectly competitive market over the years with the attractiveness of affordable mobile phones as well as lower service costs. With advance technology and communication sector many companies are competing with each other so as their success can attract customers to buy their products and services.
With the enhancement of modern technology in mobile phones, the mobile phone industry is managing a sharp growth. With becoming a basic necessity, mobile phone industry is growing at a rapid pace.
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