Analysis of Professional in Mobile Phone Manufacturing Industry

This report provides an analysis of Professional, a leading company in the mobile phone manufacturing industry. It includes external and internal environment analysis, Porter's five forces, PESTLE analysis, and recommendations for future improvement. The report also discusses competitors, geography and technology, and stakeholder analysis.

STRATEGY

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
PART 1............................................................................................................................................1
EXTERNAL ANALYSIS ...........................................................................................................1
Competitors:.................................................................................................................................1
Geography and technology..........................................................................................................1
Sub strategic group in the phone industry....................................................................................3
INTERNAL ANALYSIS (Sources of competitive advancement).............................................4
Value chain analyses: -....................................................................................................................4
PESTLE Analysis........................................................................................................................6
Detailed critical analysis of Investment in R&D.........................................................................9
Recommendation to improve performance in over next three years. .......................................10
PART 2..........................................................................................................................................12
Stakeholder analysis...................................................................................................................12
Stakeholder management- .........................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategy is based on high level plan that help to achieve one or more goals under the
condition of various uncertainty. The report is mainly based on the analysis of data from Ceism
simulation game by taking Professional as leading company in mobile phone manufacturing
industry (Jaligot and et.al., 2016). There are many competitors of firm like blue, grey, innovators
and many more that are operating into same market that of USA, Asia and Europe.
The report will include external and internal environment analysis of Professional. The
report further will explain Porter five force and Pestle analysis which describe the firm’s current
and future situation as well. it will also discuss about stakeholder analysis and further
recommending firm with what should it do in future. It will determine the professional,
performance and position in global market where how different activities analysis competitors of
cesim simulations.
PART 1
EXTERNAL ANALYSIS
Competitors:
The competitors of cesim simulations in the global marketplace because there are many
companies used this platform for providing better quality of product and services to consumers.
It including innovator, red, yellow, orange. These are different competitors targeting the group of
consumers in global marketplace (Barišić and Prović, 2014). The Professional firm can operate
the mobile sector where it can implement innovative idea for minimizing the cost and increasing
the demand in global marketplace. Sometimes, it becoming tough competition of professional
company to maintain position in global marketplace.
Geography and technology
In terms of geography and technology, ceism simulation is considered one of common
technique that can use different competitors in marketplace. Professional firm will expand their
business in different nations such as Asia, USA and Europe. As per technology analysis, it easily
helps for identifying customer preferences in global marketplace. Asia and Europe are different
countries that must use new technology for attracting towards product and services. Professional
firm requires to server the continent and United state citizen in different ways. The organization
is focused on the research for identifying the position of item in global world.
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THE
INNOVA
TOR'S Red Blue
Leade
rs Grey
Och
re
Globa
l
leader
s
Profession
al Yellow
Sales
revenue
from
markets 2,709,916
3,722
,508
2,798
,969
1,420,
866
1,172,
717
43,8
13
731,6
21 924,027
1,172,
473
from
internal
transfer
s 0 0
285,6
43
194,0
47 0 0 0 0 0
Sales
revenue
total 2,709,916
3,722
,508
3,084
,612
1,614,
913
1,172,
717
43,8
13
731,6
21 924,027
1,172,
473
from
markets 2,709,916
3,722
,508
2,798
,969
1,420,
866
1,172,
717
43,8
13
731,6
21 924,027
1,172,
473
Table: 1
Figure 1 Sales Revenue
2

As per figure, it can be determined the overall sales revenue of professional in global
marketplace. It helps for company to compare with the strongest competitors through innovators,
blue, grey and yellow.
Sub strategic group in the phone industry
It is an essential for professional firm to maintain the positioning of product and services
in marketplace. The professional always planning an effective strategic to maintain the brand
image in front of consumers (Heričko and et.al., 2017). Professional always motivate the people
to select the product because employee encourage the people by using online platform. it must be
divided on the basis of advanced features, scalability and quality.
Buyer preferences and market segmentation
The consumer preference should be changed as per the market trends in global world. It
is considered as a main reason to segment market as per preference of potential client. As per
analysis, it has found that professional firm to segment the market through different products. it
also investing lot of money in the innovation technology that support to provide product on the
basis of demand (Kikot and et.al., 2013). Some companies are taking right decision that increase
the demand in global world. Professional firm will segment the market according to the
technology for improving the efficiency and offer the product on time. In this way, the level of
consumer satisfaction increases and maintained in proper manner.
Table: 2
According to the table, it can be identified that the advanced technology used in the
business that help for providing the better quality of services in term of technology such as cesim
gaming. It also identifies that competitors of professional try to change their technique for
establishing positioning in global world. In this table, Innovator is a leading organization that
always try to use new technology for maintaining their positioning in market.
Market share
3

THE
INNOVATO
R'S Red Blue
Leade
rs Grey Ochre
Global
leaders Professional Yellow
25.63
22.0
2
17.1
3 11.28 7.15 0.22 4.91 5.05 6.62
37.19 0.00 0.00 0.00
18.7
5 0.57 12.87 13.25 17.36
0.00
76.8
5 0.00 23.15 0.00 0.00 0.00 0.00 0.00
0.00
42.6
1
51.7
3 5.66 0.00 0.00 0.00 0.00 0.00
Table :3
According to this table, it can be identified the market share of professional firm through global
marketplace. As per analysis, innovator is the strongest competitors of professional that has
maintained their position in market.
Figure 2 Market Share
4

INTERNAL ANALYSIS (Sources of competitive advancement)
Value chain analyses: -
It is a process in which various business activities are classified into primary and
secondary activities (El-Sayed, Dickson and El-Naggar, 2015). Further their contribution is
analysed towards the value creation. These activities are as follows: -
Primary activities
These activities are involved to convert input into output and distribute the products in
market with different distribution activities.
 Inbound logistics: - Professional is involve in different primary activities like inbound
logistics that includes activities like receiving the raw materials, storing them for further
use and also distributing it so that goods and services are available for different
operations of the business.
 Operations: - This activity in the company professional includes transfer of raw material
and completing it into a final product that is ready to be sold in market (Jaligot and et.al.,
2016). Professional is a manufacturing company that is the reason it includes activities
like machining, packaging etc.
 Out bound logistics: - This activity in the company professional helps in collection,
storing and delivering of the product to the respective customers.
 Marketing and sales: - There are activities like advertising, market research that helps
professional company to get their customers aware about products features.
 Service: - Professional is maintaining the value of their products by providing after- sales
service to their customers.
Support activity
These activities usually assist all primary activities and give them support.
 Procurement: - This activity is serving professional as it supplies necessary material and
machinery so that primary activities can be run smoothly.
 Technology development: - This activity requires huge investment and professional is
manufacturing their products with help of good technology as it gives competitive
advantage to this firm.
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 Human resource management: - In professional it is considered as the most important
activity as it helps the company in selection of good staff and make them retain for long
period.
 Infrastructure: - This activity includes planning, quality control, finance and
professional is managing these activities in an effective manner (El-Sayed, Dickson and
El-Naggar, 2015).
VRIO framework
It is an internal analysis tool that the company professional is using in order to categorize
their respective resources and identify competitive advantages of these resources (VRIO
framework, 2019). There are four dimensions by which this framework is being formed: -
 Valuable: - If resources of the business are valuable then they will be somehow
beneficial to the organisation. But to give competitive advantage it is necessary that this
resource fit all other dimension. Professional is having resources that are valuable but
can easily be imitated.
 Rare: - If a company is having uncommon resources then other organisation then they
are rare in nature. It can be beneficial to professional that they are having resources that
are both valuable and rare, this helps the company to have a competitive advantage over
other firms though for a limited time period (Knott, 2015).
 Inimitable: - There are resources that are very expensive for the firm to afford like these
resources may be protected by legal means. Professional can have such unique resources
that other organisation cannot imitate. Having resources that are valuable, rare and
imitable can bring competitive adventure to the firm.
 Organized: - Professional can have resources that are organised if it is getting support of
process, structure and culture of the firm. Having resource that is valuable, rare, hard to
imitate and organised can give a long-term competitive advantage to professional.
PESTLE Analysis
 Political Factors: It is one of the most important factor that affect an organization in
various ways (Rastogi and Trivedi, 2016). This factor includes all the ways through
which government can influence a business both positively and negatively. It has been
observed that from past few years their has been a continuous political tension going on
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between USA and few countries of Asia such as China. The political tension between
USA and china is affecting their overall productivity. Due to this overall productivity of
professional team is getting affected. This has also affected the overall sales of
Professionals.
 Economic Factors: It is one of those factors that affect the overall economic
performance of a company. These factors have both direct and indirect impact on
companies overall performance. These factors also affect the overall profitability of a
company because if there is any kind of change in inflation rate or tariff rate etc. then
mobile manufactures cannot directly pass on these pressure on customers due to which
the overall profitability of the organizations is affected. It has also been observed that
sales of professions in USA, Asia and Europe is quite low as compared to their other
competitors Due to which their overall market share is comparatively lower than others
which is affecting them economically. Due to which their overall market share and sales
is quite low globally as compared to others.
 Social factors: These factors also affect the product demand and customers of an
organization. For any organization it is extremely important to analyse this factor before
entering into any new market as there are many sub factors which affect the overall
demand of the product such as: income distribution, growth rate, age distribution etc.
Mobile manufacturers need to analyse this factor as their overall demand for the product
can get affected due to these factors. The highest demand for professional product has
been seen in Asia and has higher market share in Asia as compared to USA and Europe.
It has also been observed that professionals are at seventh positions in terms of global
sales despite of the fact that their product demand is higher in Asia.
 Technological Factors: it is one of those factors that affects the overall operations of any
organization. It is one of the major factors that affects mobile manufacturers and their
overall business operations. Due to advancement in technology competition for the
mobile manufacturers is also increasing year by year. It has been observed that
competitors of professions is quite advanced in terms of technology, and they are laid
back due to which their overall market share and sales are getting affected. Professionals
need to invest more on their technology in order to increase their sales, performance and
efficiency.
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 Legal Factors: Government of various countries has set some rules, regulations and
legislations for the organizations so that they can do business within their country. These
legislations directly/indirectly affect the overall business of the organization. Violation of
any rules or legislation can affect the business of these mobile manufacturers. If this
factor is not paid attention on then it can affect sales and profit of all the mobile
manufacturers. Professionals also need to focus on protecting their unique resources
legally so that other organizations cannot copy them.
 Environmental Factors: This factor has recently come into picture (few years ago). It is
important for mobile manufacturers to focus on this factor as well because it can affect
their sales and demand of product. This factor focuses on sustainability, CSR,
environmental offsets etc. if laws related to these factors is not adhered by the mobile
manufacturers then they can face strict actions from government which can affect their
sales, brand image, demand etc.
Porter five forces analysis-
Currently, it is the model that aids to analyse the tools to identify the external conditions.
Thus, dynamics for the each two group are identified in the following manner as are-
Threat of new entrants- The threat of new entrants is relatively high, as market share of
professional is quite low. On the other hand, the other enterprise as Red, grey etc. are having
hood market share. Due to this, there can be presence of high competition within the market.
Therefore, other entities are having good marketing strategies, technical advancement, brand
recognition etc. Threat to new entrant for professionals is quite high as market share of
professions as compared to other teams such as the innovators is quite low and a new entrant can
easily give tough competition to the professionals.
Rivalry among exiting markets- The number of the rivalries are increases and the there is rise in
competitive capability. Henceforth, the rivalries in the existing market is quite high as this leads
to different acquisition and strategic alliance of the different suppliers. In addition to this, the
competition within the market has the huge impact on the working of the enterprise as this
affects the marketing share of the existing firms. It has also been observed that professionals
have a tough competition with grey, global leaders and yellow and are far behind the innovators
and red in terms of market share.
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Threats of substitutes- There is presence of high threat of substitutes as the innovator is the entity
that works as to bringing up the huge innovation that leads up to have high competition within
the market. Due to this, this can be stated that the sales of the substitutes are high at the time of
seasonality. Thus, innovations aids to attract the customers. Professionals have a high probability
of substitute products as there are more numbers of competitors in the market who can compete
with them and increase threat of substitute as well.
Bargaining power of buyers- The bargaining power of the buyers of this firm is quite low as
there market share price is low. Henceforth, this is impacting over the brand image of the
enterprise.
Bargaining power of the suppliers- Due to the strategic alliances within the market the
bargaining power is quite low. Thus, there are number of the enterprise that are operating the
same function. Henceforth, this has huge impact over the bargaining power of the suppliers.
Detailed critical analysis of Investment in R&D
As per the view of Lai, Lin and Lin (2015) research and development in the which is
commonly used in order to describe the activities which is undertaken by the firm in order to
create the new or improved project/ process. It is the part of company's operations which may
seeks knowledge to develop, design and the biggest advantages of investing in the research and
development department is such that it helps to increases productivity or a new product lines. In
the same way, Professional Team also invest 52,700 for Cesim game and gain profit which
clearly shows that investing in the research and development department will not require higher
amount which other firm actually does. Therefore, it is also evaluated that R&D also consist of
investigate activities which an owner chooses in order to get desired results. That is why, the
business almost uses Research and development for continuous benefit.
Apart from this, there is another attribute of Research and development which also
emphasises in the modern economic growth literature that is Cumulative Nature. As per the view
of Carboni, (2017) cumulative nature in investing in research and development department leads
to increase the returns. Thus, it is the idea that is created by doing Research and development is
such that it helps to make one more productive for acquiring some additional knowledge. The
Professional team also invested least amount that helps a firm to deal with the inter temporal
nature of Research and development which is invested by treating in the same way that is
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ordinary investment in tangible assets. Further it also adding up the expenditure in order to create
the Research and development stock (Gu, 2016).
For that, different company uses innovation in their working area and that is why, they
invest in research and development because company already know that they get good amount of
return. In the same way, Professional team also invest in Cesim game because through this,
company have its unique selling point and even the income of the company also increases
because it gets profit. Apart from this, the biggest benefit of investing in research and
development is such that company gain high advantages over its competitors and even
development of new intellectual property also provides benefit to the firm in the term of
financially (Gang, 2016). Lastly, by investing in the company's research and development,
Professional team may sustain the brand image and reputation as well. It is so because if the
quoted firm is collaborating reputed partner, then it may benefited to the brand image of the
firm. That is why, it is good for the team to invest in the Research and development so that it will
help to attain the desired outcomes as well.
As per the views of Baumann and Kritikos, (2016) forms the important part of the organisation
and functions of R&D can not be ignored as it plays an important part in the success and
development of products and services in the organisation. There are various strategic decisions
taken by Professional. If the company does not put their investment in R&D can not remain
ahead of its competitors for this it is important for professional to make an high investment in
R&D project as compared to its rivals. So, it can be said that if the company does not make
amount of investment in R&D project can not with stand rivalry form its competitors. It can be
analysed that Professional is not making high investment in R&D project but its rivals are
making a good amount of investment in R&D project. On the other hand it can be said that
Professional has been making a regular amount of investment in R&D projects which shows that
management is willing make more investment in R&D as they have been regularly involved in
making investments. Also, if company will improve its investments in R&D project this will
result in less access to market information that will result less development in products and
service development that will in failure of products and services for the organisation.
Recommendation to improve performance in over next three years.
 In order to improve investment decisions over three years Professional company where a
company should follow a top to down strategy as well as bottom-up technology
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opportunities. Top to down approach is essentially breaking down of the system to gain
insight into their compositional sub systems.
 Company's R&D investment should depend on the range of broad external and internal
factors. The various external and internal factors which will be outlined which help in
shaping the investment for three years for the organisation. Due to the proper analysis it
will help in improving the decision making process related to investment in R&D.
 R&D investment decisions should not be made independently of the company but should
be integrated with number of factors and should flow from broader business strategy.
Here a company should refer to broader business environment which supports a company
that will help in improving the R&D investment of the organisation. This will help the
company in understanding the different aspect of the investment which was not clear
before.
 It is recommended that company should balance it R&D investment against its
expenditures for example its production, marketing activities, daily expenses, etc which
are essential for the organisation. Also, company should try to intervene various areas or
departments if the organisation with R&D. For example company's customer engagement
and marketing information can lead to product development which can result in the huge
profits for the organisation. This will help in improving the performance of the
organisation.
 Company should be able to understand the future market trends effectively for this it
needs have proper strategic as well as direction which can lead towards proper
investment decisions that can improve the performance of the company for the future.
 Also, company can take feedback from various technological groups on various emerging
technical threats and opportunities which can help R&D in providing directions.
 Organization can conduct the different type of the survey which will help the
organization in getting the best information available before making investment in the
Research and development program of the company.
 Organization can take the step toward increasing the quality of the data which has been
collected through the different sources. It can be done by increasing the number of
mandatory question in the survey as compare to the Voluntary question which will help
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the company in getting more relevant data of the research so that on the basis of that
development program can be performed in an organization.
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PART 2
Stakeholder analysis
Stakeholders refers to an individual, organisation or whole society that has
interest in the operations of the company. Stakeholders are of two types internal and external
stakeholders. They affect the performance of the business as well as they also get affected by the
operations of the organisation (Omeje, 2017). The project of an organisation requires approval,
guidance of various people that are related with organization and the key stakeholder are
professionals who help to let other learn how to perform the Cesim game.
Stakeholders analysis helps the organisation to determine type of people to be involved in
various stages of the activities that are involved in the project. This will ensure that project has
started with proper understanding of every aspect of the project. Product Manager of professional
company should conduct the analysis of stakeholders of the business because it will increase the
chances of success of the project (Afridi, 2018).
Mandelow's Matrix
Minimum Efforts Keep informed
 Suppliers
 Government
 Employees
 Customers
Keep satisfied Key Player
 Directors
 Owners
 Manager
 HR
 Professionals
From the stakeholder analysis, it has been identified that there are different stakeholders
within a business and there should be good communication between each other such that:
 Primary stakeholder: they are employee who are most affected and through their action,
organization have their positive and negative impact. For the company, it is quite
necessary to keep them satisfied (Gang, 2016).
 Secondary stakeholder: They are the person who are indirectly affected by the
company's any action and for the firm, it is quite essential to keep them manage and
13

monitor. Owners, Manager fall under this category.
 Tertiary Stakeholder: These stakeholders impact the least and for company it is very
least important such that government.
 Key stakeholder: They have significant influence upon the organization such that
Employees, professionals and customers are fall under this category (Heričko and et.al.,
2017). Therefore, there should be proper communication with each stakeholder so that
new strategies are developed that helps to lead a business towards success.
The priority stakeholder are professionals who have effective communication and
through effective research and development, they may also creates positive impact upon the
business performance. Moreover, these priority stakeholder are also reduces the cost then profits
of the company so that it will provide better quality products to their customers. Such that
through an effective communication, all the stakeholders are keep engaged within the working
area.
Stakeholder management are related to stakeholders who help in designing and implementation
of actions. Some actions that need to be implemented are:
 Research & Development: Professional should invest in research & development of the
firm because the company is investing huge funds in production. Current information
says that the cost of production is very high and it needs to be resolved.
 Cost Control: The cost of production of good is high in professional but with that revenue
is also high. So if the company reduces the cost then profits of the company will also
reduce and so total quality management technique should be used (Kikot and et.al.,
2013). This technique will find the process which is costing the business maximum and
investment will be done so that the process cost less to business.
 Management: The company uses both source of management in the business i.e. the
current employees and employees on contractual basis. The employees on contractual
basis charge more and are the reason for high cost of production. The dependency of
company on these employees should be reduced and this will reduce the cost of
production.
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REFERENCES
Books and Journals
Lai, Y. L., Lin, F. J. and Lin, Y. H., 2015. Factors affecting firm's R&D investment
decisions. Journal of Business Research.68(4). pp.840-844.
Carboni, O. A., 2017. The effect of public support on investment and R&D: An empirical
evaluation on European manufacturing firms. Technological Forecasting and Social
Change. 117. pp.282-295.
Gang, W. E. I., 2016. Financial Constraints and R&D Investment Efficiency in Chinese
Companies. Science and Technology Management Research. 2016(21). p.28.
Gu, L., 2016. Product market competition, R&D investment, and stock returns. Journal of
Financial Economics.119(2). pp.441-455.
Baumann, J. and Kritikos, A. S., 2016. The link between R&D, innovation and productivity: Are
Barišić, A.F. and Prović, M., 2014. Business simulation as a tool for entrepreneurial learning
The role of business simulation in entrepreneurship education. 4(2). pp.97-107.
Heričko, M. and et.al., 2017, August. Using a simulation game approach to introduce ERP
concepts–a case study. In International Conference on Knowledge Management in
Organizations (pp. 119-132). Springer, Cham.
Kikot, T. and et.al., 2013. Simulation games as tools for integrative dynamic learning: The case
of the management course at the University of Algarve. Procedia Technology. 9. pp.11-21.
Rastogi, N.I.T.A.N.K. and Trivedi, M.K., 2016. PESTLE technique–a tool to identify external
risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
El-Sayed, A.F.M., Dickson, M.W. and El-Naggar, G.O., 2015. Value chain analysis of the
aquaculture feed sector in Egypt. Aquaculture. 437. pp.92-101.
Jaligot, R. and et.al., 2016. Applying value chain analysis to informal sector recycling: A case
study of the Zabaleen. Resources, Conservation and Recycling. 114. pp.80-91.
Knott, P.J., 2015. Does VRIO help managers evaluate a firm’s resources?. Management
Decision. 53(8). pp.1806-1822.
Online
VRIO framework. 2019. [ONLINE]. Available.
Through<https://www.clearpointstrategy.com/vrio-framework/>
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