(Cromar, 2010) The smartphone market is characterized by perpetual innovation and constant new product development. No one company has considerable market share so all the companies are constantly evolving technology in order to remain competitive and not to be driven out. (Brownlow, 2012) Smartphones and tablets have very short product life-cycle due to constant improvement in technology, aggressive pricing and rapid imitation. The barriers to entry in this industry are very high due to patents, high start-up cost, regulations and economies of scale. In the smartphone industry there are many drivers which deliver success and in order to stay in business and maximize value for the company it is important to know what factors guide the company towards excellence. The smartphone industry is very fleeting, therefore companies need to be on their feet and constant research and development is needed to come up with the most innovative features that would appeal to consumers. This should be in line with the market demand, but innovation is a key competitive force in the smart phone industry. Secondly, the product needs to be reliable and should deliver on its promises. Having a reasonable battery life is important along with good reception. This would make the consumer brand loyal if their expectations are met. Also, good customer support service is mandatory to be competitive. Thirdly, the product created needs to expandable such that it allows third party applications to run and is not very restrictive in nature. Timely software updates also reinforce a brand’s image. Another competitive force would be that the product should be user friendly, and the interface should be designed in order to facilitate consumers and should not be time consuming. Lastly for a company to remain competitive they should have great financial capability in order to respond to the fleeting market demand and have the finance for product development shifts, marketing and acquisitions as well. (Gartner, 2010) One of the best ways of evaluating the attractiveness of an industry and gauging its performance is through the Michael Porter's five force model. This model ensures that a holistic analysis is performed which considers all the possible threats and provides a true picture of the external environment of an industry. The industry according to this model is quite profitable as only two threats are strong and can be removed via good coordination. The smartphone industry is marked with the threat of rival sellers. All the major competitors have pretty much the same strategy and use innovation to excel and make promising products. Also, these companies are financially strong and stable and have immense budgets for promotional campaigns and intense research and development. Another common feature of this industry is the greater ability for acquisitions which dirty dig the share quickly off the android. Because the industry is progressing at a fast rate, some shifting in market share without long term results can exist. (Analysys Mason, 2012) The threat of new entrants is moderate because the barriers to entry are many. The global distribution of technology is limited to the leading technology companies and they have patented their hall of fame products. The only
The smartphone industry consists of the all firms that manufacture smartphones and sell it to the entire world. Smartphone is defined as a mobile electronic device which runs an advanced operating system and can also install new applications and is always connected to the internet which results in a variety of functions available to the consumer…
Strategic management can be defined as the processes of analysing, taking decisions and actions that an organization assumes in order to create and to maintain competitive performance (The McGraw-Hill, 2010). An effective use of strategic management procedure can bestow a company with certain benefits that include gaining a scope for improving the performance of the company, establishing a future direction, introducing quality products and services to enhance future success prospects among others (Washington State Hospital Association, 2006).
This industry is likely to continue with the growing trend because of the increasing popularity of smartphones among the customers. Furthermore, the smartphone industrial sector can be characterised as a highly competitive market which is almost occupied by the giant players of this sector (Ko & et.
They aim to capture broad market and improve their revenue. The company targets to achieve this within three months once the execution of the plan begins. This company has planned to start its activities by early July 2013 and end by October 2013. Setting activities at the right time will enable MidlandsPhones to get into the market before their rivals (Ireland, Liu and Yu-Chih, 2008).
According to the paper scholars have had a heated debate on the exact definition of design thinking because others scholars supported the fact that design thinking was what the designers did while other scholars found no concrete reason to differentiate design from design thinking. Design thinking has multiple benefits to organizations because it greatly promotes innovative measures and progress. This is the case because design thinking helps an organization to think in radical ways that enhance the despondence towards unexpected challenges of thinking and doing differently.
The author states that another characteristic showing that the smartphones fall into the monopolistic competition category is the use of brand name by each company to name the product. According to the author, monopolistic competition is favoured by the strict laws governing the brand names of the products.
In order to reply these questions, such tool as Porter’s five forces will be used in order to identify the main industry drivers and competitors for Nokia. The strengths and opportunities will be highlighted to summarize the key competitive
14 pages (3500 words)Essay
Get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Didn't find an essay?
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com