IT report on 3G Technology: Report on mobile phone developers
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..
COMPETITORS ANALYSIS
OPTUS: –
Optus mobile, also known as SingTel Optus Pty Limited, is Australia’s second largest telecommunication company providing wide range of products over millions of subscribers. Optus mobile offers not only mobile phones for personal and business usage but also provide network and enterprise solutions. To serve its customers in a qualitative manner, Optus mobile owns and operates its own network infrastructure. With the introduction of Optus Open Network, Optus mobile offers 3G dual band, 3G single band and 2G services to its customers (Optus, 2012).
TELSTA MOBILE:-
Telstra, also known as Telstra Corporation Limited, is Australia’s leading Telecommunication company serving over eight million customers in the country. The year 2010 marked a fruitful year for the company as the company announced its billion dollar fight for recovering its market share in the telecommunication industry. The company has a dominant power in providing fixed line services to its customers. Telstra, today, provides basic access services to over eight million fixed lines and more than 12.5 million mobile connections in a qualitative manner (Telstra, 2012).
VODAFONE AND HUTCHISON AUSTRALIA (VHA):-
Vodafone and Hutchison Australia is a joint venture between Vodafone Australia and Hutchison Australia resulted in creating a mobile communication of approximately 7 million subscribers. The joint venture was created on June 10, 2009 on a 50-50 basis. However, the joint venture between Vodafone and Hutchison did not show a successful reward as the market share of the company dropped to 17 percent. Vodafone employees more than 4,000 employees and provides mobile services to more than 6.8 million customers in Australia (Vodafone, 2012).
MARKET ANALYSIS & SEGMENTATION
TARGET MARKET: –
Mobile phones have become attractive products because of their usefulness. Today there are more than 150 million people using mobile-phone in Australia. With enhanced features and data applications available on mobile phones, mobile phones have become a necessity in a human life rather than a luxury item. Mobile phone users use mobile phones not only for talking rather for using the enhanced features of the mobile phone. A study conducted by the mobile services consumer wireless usage revealed that more than 50% of customers used their mobile phones for cameras, clocks, calendar to plan things, route navigation using GPS and to play games rather than just talking. And the population segment that uses mobile phone other than talking is between the 18-50 years. However, dependency of consumers on mobile phones can be a threat that forces consumers to pay much higher for mobile phone services than they usually pay.
MARKET GROWTH:-
Though the mobile phone service industry is especially vulnerable to the threat of downturns in economic cycles and has to contend with many political-legal issues it is an attractive industry. There are many opportunities available over a wide range of areas. Some of these particular opportunities are to cater to an aging population, offer ease of communication for busy families, developing mobile phone trends, have a strong online presence to serve lifestyle questions, and serve local products to avoid some global issues.
MARKET STRATEGY FOR MAKING PROFIT
The mobile phones have become a necessity across the globe, especially in today’s world. The purpose of having a mobile phone, today, is not only for speech but also to deliver data. There is a big competition going among mobile phone manufactures to provide mobile phones on a lower cost with enhanced features for becoming the market leader. 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. This helps Providers to allow users to use Internet on their mobile phone, without taking any initiative to use their computers. Apart from accessing and surfing internet, Mobile Phones can also be used as calendar to plan things, route navigation using GPS and to play games. The mobile phone is one of the equipments, which is easily accessible to people of different ages without any hesitation. Teenagers used their mobile phones as fashion symbol, since the styles have been changing almost every year (Ben, 2012).
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.
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