Development of HTC Smart Phones in the UK - Essay Example

How sociological and economic factors affect the development of smart phones in the UK. ---Case study HTC. Abstract The use of mobile phones has increased over the last decade with the current trend in mobile telephony being the migration from the basic mobile phones to the use of smart phones. Smart phones are a specific category of mobile phones with increased intelligence; such phones perform more functions than the normal voice calls and exchange of texts. The phones have increased levels of artificial intelligence and therefore incorporate computer operating systems to enable them perform some of the basic operations of computers such as the access to the internet. Additionally, artificial intelligence earns them the ability to execute tasks automatically thereby making human life easier and more convenient. A number of factors most of which are both sociological and economical necessitates the increased in the use of mobile phones. The changing trends in the two aspects of human life are indications of changing lifestyles, which therefore necessitate the migration to the use of smart phones Introduction The study seeks to determine the numerous sociological and economic factors that influence the increasing trend in mobile telephony, which has resulted in the migration from the conventional mobile phones to the current and more sophisticated smart phones. It is evident that the modern market demand more from their mobile equipment, which has consequently expanded to include the use of laptops and iPad. From the features in the smart phones, it is easy to identify the features that the market demands from their mobile devices. Most of these are often sociological thereby revealing the pattern in the country’s social structure (Eisenstadt, 1973). However, there is always the financial implications of the increasing use of smart phones. Smart phones are more expensive than the previous versions of mobile phones yet the demand for the products is constantly increasing thereby resulting in the intensifying competition in the market. A trend that portrays a number of features about the economic characteristics of the United Kingdom and her population. The study therefore intends to investigate the motivation to the increasing innovation in the invention of mobile phones most of which are the economic and the sociological factors. In doing this, the research reveals the social structure of the country and the nature of social interaction among the population. The class economic regime that is rife in the market classifies its population in accordance to the amount of money they have including their total assets. This therefore results in different economic classes, which corresponds in the different markets in the economy. The rich and the wealthy who constitute the first class citizens have the money to purchase any product from the market. Consequently, their social life is complicated enough and therefore require the aid of communicator devices. The mobile devices that target this market therefore are more qualitative and are more expensive The second and third class constitute the middle class and the poor. The poor are a minority group in the country since the government tends to create opportunities for its population. This results in a wider middle class. This category attaches more importance on the price of the commodities they purchase even though they also require convenience and comfort. Despite the common trend in marketing in which any product targets a specific market, the smart phones market is different since every person has different requirements for the phones thereby resulting in even those in lower social classes purchasing complicated smart phones that are relatively more expensive than the others are. Popular culture is one social factor that influences the trends in the use of mobile phones thereby necessitating the migration to smart phones. Just as the name suggests, popular culture refers to a widespread social and cultural trend. The advent of the internet and the advanced communication infrastructure resulted in an increased efficiency in communication and interaction thereby making it easier for people to exchange social and cultural features. The world eventually became a global village, one in which geographical barrier does not impair communication and interaction. This makes it possible for people to share trending features including the stylistic and technological smart phones (Thomas & Michael, 2001). Theoretical background The growth of smart phone in the United Kingdom is a result of both sociological and economic pattern changes. The consequent development and growth of the HTC Corporation, which is the leading smart phone manufacturer, is an indicator of the nature of the Smartphones market in the country. HTC invents the trend in Smartphones in the country and makes millions of pounds in profit each financial year (Calhoun, 2002). The company produces some of the most preferred smart phones thereby creating a monopolistic market despite the liberal economic structure in the country. HTC competes against other internationally recognized smart phone brands such as the South Korean Samsung and the American Black berry. Despite the increasing competition through innovation and the freedom of trade, the native English company faces intense competition, which it tries to avoid through a myriad of economic mechanisms (Giddens, 2006). Sociological and economic theories are are quantifiable hypothesis that provide explanations to the behavior of people, in this context the consumers. The theories theefoe explain the factors that necessitate the migration from the use of the conventional mobile phones to he modern smart phones thereby leading to the growth of the HTC corporation in the United Kingdom. The economic theory of absolute advantage refers to the ability of a company to produce more products using the same resources than its competitors. This implies that the products from that specific manufacturer possible dominate the market (Meisenheimer, 1997). The excessive products that the manufacturer produces therefore constitute its primary profit. Such companies therefore make more profits than their competitors do. The HTC Corporation is an English company that manufactures its products in the country. The company therefore understands the United Kingdom smart phone market unlike its major competitors most of which import labor by manufacturing their products in either China or the United States of America. HTC therefore manipulates the knowledge it has about the English labor market to produce its products at the most optimal rate (Twenge, 2006). This trend results in effective and appropriate pricing of its products unlike the other companies, which cannot easily reconcile their production costs to pricing in the different countries in which they seek to, sell their products. With this operational advantage, the company further manipulates other sociological theories that define their consumers to maximize its profitability thus expanding its monopolistic hold on the market (Bogomolova, 2011). One such theory is the feminism sociological theory. This theory explains the preference patterns that the different genders portray to particular products. The male gender prefers products that depict their masculinity while women often use their sexuality and will often refer depicting their feminine feature through the products they purchase. This informs the company’s design of the smart phones to include the specific features in the products that target the different genders such as color, shapes and sizes. Most smart phones have similar features but majorly differ in their physical outlook, which often represent the preferences of their target markets (Fournier, 1998). In its product diversification, the company depicts an effective understanding of its target market. The company produces different products with different operational features and capabilities. The difference in the operational features of the smart phones determines the differences in their prices. The company ensures that it produces products that target both the rich and the middle class. All of these are often smart phones besides other portable handheld devices such as tablets and laptops. The manner in which the company alters the different specifications of their products to fit the shopping patterns of their shoppers indicates a market conscious company that carried out effective market research before introducing a new product into the market. This therefore results in profitability of its product by ensuring that their products target all the economical classes in the society (Haralambos & Holborn, 2004). Key among the Smartphone users are the youth most of who are technological and therefore have adequate use of the Smartphones in specific features but often lack the financial independence implying that their parents determine their shopping patterns. Conceptual model HTC Corporation a Taiwanese’s leading manufacturer of mobile phones has established a market in the United Kingdom through gaining an appropriate understanding of the market. The company has developed and expanded its operation within the short span of time relying purposely on product diversification thereby meeting the numerous sociological and economic theories, which explain the English market. Owing to the rapid growth of the HTC in the country, it is relevant to hypothesize that the success of any company relies on its ability to carry out effective market research thereby having the ability to produce appropriate products for every market segment (Elizabeth & Michelle, 2008). As the company increases its market reach, the company requires effective marketing strategies which will aid it identify new markets capable of sustain the budget and profitability margin. An increasing market presents a number of management challenges as the organization seeks to hire new employees and legitimize its increased operations. The expansion plan requires an effective market research to inform the subsequent increase in the operations of the company. Every business seeks to expand its operations thereby sustaining both the profitability and longevity of the business. With an effective market research, the organization makes informed investment decisions that guarantee the projected profitability. HTC has an active marketing department, which carries out continuous research to determine the new scopes of operation. The department thereafter advises the management on the essential aspects of operation, which safeguard the organizational profitability. The company therefore designs smart phones that target this class of users by incorporating some of the features they require the most. The youth use their smart phones purposely for entertainment and for socialization; the company therefore incorporates features that safeguard these two aspects of the social structure thereby attracting more of the youth shoppers. With these features, the smart phones cost relatively lower than other phones in the market that may target more experienced user target with more financial freedom. Social conflict is one other classical sociological theory that explains the aggressive nature of the marketing techniques of the HTC Corporation in the United Kingdom. The theory asserts that there is always a constant struggle for the society’s most valued resources. The company understands that the market is the most valued resource in the economic environment and therefore it does everything to ensure that it appeases its market share thereby possibly becoming a monopoly in the country (Aaker & Aaker, 2010). The company carries out effective and frequent market researches to ensure that it obtains the most effective information about the market thereby making every of its product sell a feature that sustains the company’s growth. The company had initially produced smart phones that ran on windows mobile, which was a partnership between the company and Microsoft. However, with time as the android operating system became more prevalent among Smartphones users, the company seamless introduced Android smart phones that have so far performed as the company had hoped. To sell the products in different markets especially in the United Kingdom and the United States of America, the company collaborated with the T-Mobile a leading mobile phones marketer in the regions thereby resulting in massive success for the company between 2009 and 2012. This portrays an effective marketing and operational skills that considers the demands of the customer thereby using such as competitive advantages against other companies (Jiaming, 2008). Methodology The research is a primary quantitative research meaning that the research will rely mainly on primary sources to evaluate the effects of both sociological and economic factors on the growth of Smartphone usage in the country. Primary sources refer to the actual users of the company’s product who will inform the researcher on their motivations of using the HTC products. Additionally, the manufacturers of the mobile phones, which includes the staff and the management at the HTC, will also constitute the primary sources from whom the researcher obtains the different market factors that influences the company’s designing and marketing policies thus the success. The research uses a number of data collection methodologies including the use of questionnaires, interviews and observations. The different methods have numerous strengths but together they complement each other thereby resulting in a comprehensive data collection mechanism. In computing the research findings, the research employs different statistical tools such as SPSS to code the different questions in the questionnaire into mathematically computable variables that are easy to compare. In presenting the results of the research, the research employs graphical means of presentation by using graphical aids such as charts and graphs. This breaks the monotony of texts besides the ease of interpretation thereby earning relevance to any audience group. Bibliography Aaker, D. A., & Aaker, D. A. 2010. Marketing research. Hoboken, NJ, John Wiley. Calhoun, C. 2002. Classical Sociological Theory. Oxford, Wiley-Blackwell. Bogomolova, S. 2011. Service quality perceptions of solely loyal customers. International Journal of Market Research, 53(6) 793-810. Eisenstadt, S. N. 1973. Tradition, Change, and Modernity. New York, Krieger Publishing Company. Elizabeth, B & Michelle, C. 2008. Definition of Social environment, New York, Mc GrawHill. Fournier, S. 1998. Consumers and their brands: Developing relationship theory in consumer research. New York: New York Times. Giddens, A. 2006. Sociology. Cambridge, Polity Press. Haralambos, M & Holborn, M. 2004. Sociology: themes and perspectives. London, Harper Collins Publishers Ltd. Jiaming, Y. 2008. Computer Supported Cooperative Work in Design, Melbourne, Springer. Meisenheimer, C. G. 1997. Improving quality: A guide to effective programs. Rockville, Mar: Aspen. Thomas, D. & Michael, C. 2001. Successful Management Projects. Oxford: OUP Publishers. Twenge, J. (2006). Generation Me. New York, NY: Free Press. Read More