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Competitive advantage in mobile phone industry

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Added on  2021-02-19

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STRATEGY TABLE OF CONTENT INTRODUCTION 1 MARKET ANALYSIS 1 Competitors 1 Geography and technology 1 Buyers preferences and market segmentation2 Sub strategic groups in mobile phone industry2 Market shares 4 Porter five forces model 4 PESTEL analysis 6 Deep dive on varied economic factors greatly affecting busienss 8 Industry life cycle 9 Product life cycle 11 Industry size 12 Global capacity usage 13 2010). 14 Sources 14 Value chain analysis |15 Cost per unit 16 Critical analysis of investment in R&D 18 Industry analysis

Competitive advantage in mobile phone industry

   Added on 2021-02-19

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STRATEGY
Competitive advantage in mobile phone industry_1
TABLE OF CONTENTINTRODUCTION...........................................................................................................................1MARKET ANALYSIS....................................................................................................................1Competitors.................................................................................................................................1Geography and technology.........................................................................................................1Buyers preferences and market segmentation.............................................................................2Sub strategic groups in mobile phone industry...........................................................................2Market shares..............................................................................................................................4Porter five forces model..............................................................................................................4PESTEL analysis.........................................................................................................................6Deep dive on varied economic factors greatly affecting busienss..............................................8Industry life cycle........................................................................................................................9Product life cycle......................................................................................................................11Industry size..............................................................................................................................12Global capacity usage...............................................................................................................13Sources of competitive advantage.................................................................................................14Sources......................................................................................................................................14Value chain analysis..................................................................................................................15Cost per unit..............................................................................................................................16Critical analysis of investment in R&D.........................................................................................18Definition and benefits of R&D................................................................................................18Industry analysis.......................................................................................................................18Stakeholder analysis and recommendations as well as stakeholder management.........................19Stakeholders needed due attention by firm...............................................................................21Stakeholder management..........................................................................................................21CONCLUSION..............................................................................................................................22REFERENCES..............................................................................................................................23
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Figure 1Global demand of product..................................................................................................1Figure 2R&D expenses across firms for years................................................................................2Figure 3Market share of firms for different years...........................................................................3Figure 4Porter five force model.......................................................................................................5Figure 5Business environment........................................................................................................6Figure 6BOE base rate.....................................................................................................................8Figure 7Use of mobile phones by people of UK.............................................................................9Figure 8Product life cycle..............................................................................................................10Figure 9Industry size.....................................................................................................................11Figure 10Percentage change in industry size across years............................................................12Figure 11Capacity use across Asia and Europe.............................................................................13Figure 12Variable production cost for the firms...........................................................................14Figure 13Contract manufacturing cost..........................................................................................15Figure 14Transportation cost for the firms....................................................................................15Figure 15Average cost of the product.......................................................................................................16Table 1R&D expenses across firms for years..................................................................................3Table 2Market share of firms for different years.............................................................................4Table 3Global capacity use............................................................................................................12Table 4Cost per unit for the firms across years.............................................................................16
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INTRODUCTIONRed is taken as company for analysis in CEISM simulation. Mentioned company operate inthe telecommunication industry and manufacture mobile of all generations from 2G to 4G. Incomparison to rival’s firm is in better position because of its R&D projects and innovation that itmade in its operations. However, on front of cost firm lagged behind its rivals. Dependency oncontractors for production of additional units is one main reason behind high cost of product.This is the front where Red need to work to improve its performance. Thus, on analysis ofperformance it can be said that firm need to make hard efforts to control cost of production.Management is good and able to retain suppliers which lead to less fluctuation in cost ofproducts obtained from contractors. However, within premises cost of production is high whichmake firm less competitive to rivals. Investment in R&D is made almost equally, if economiccondition become stable and demand of smartphones plunged then in that case firm may failed tomake available technology updated mobiles to people relative to rivals. Such kind of scenariowill make firm less competitive in the market. Thus, it can be said that firm position in front ofrivals to moderately is competitive.MARKET ANALYSISCompetitorsIn CEISM simulation there are some competitors namely Blue, Leaders, grey, Ochre, Pink,Navy and Yellow. All these firms operate in the mobile industry and have core competency inmultiple fronts like innovation and cost control etc.Geography and technologyIn CEISM simulation there is one nation USA and two continents namely Asia andEurope. Markets are very different from each other. In Europe and Asia people prefer to useproducts that are different in front of price (Giachetti and Marchi, 2010). Specially, people prefercheaper products. Hence, firms need to serve both continent and USA people in differentmanner. This create main challenge for the firms and make competition more tough for them.1
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Figure 1Global demand of productBuyers preferences and market segmentationConsumer behaviour across country’s is different and due to this reason, it become veryimportant for the firms to segment market in many ways so that product can be served to peopleat right place. All firms invested in tech but in different manner. Some of companies make rightdecision while some make wrong decisions. Fast mover advantage is the one of the factor thatlead to achievement of huge success in the business (Liu and Li, 2010). Firms are segmentingmarket on basis of tech 1, tech 2, tech 3 and tech 4. Some companies do technology advancementlate and due to this reason, they face loss in the business. Thus, it is very important to ensure thataccording to requirement product is offered to the customers on time and in proper manner sothat their satisfaction level can be maintained. Thus, it can be said that there is huge significanceof the market segmentation approaches for the firms in the market.Sub strategic groups in mobile phone industryIt refers to the way in which positioning of product is done in the market. Positioningrefers to the creating specific image of the firm among customers and motivating them by usingthat image to buy a product. Red company is focus on research and development so as to positionits product as innovative product in the market. 2
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Figure 2R&D expenses across firms for yearsTable 1R&D expenses across firms for yearsTHE INNOVATOR'SRedBlueLeadersGreyOchrePinkNavyYellowYear 1295,250230,00025,0000215,0000000Year 2614,22300282,85800048,5980Year 3254,35600000051,0000Year 4827,339403,500195,000000049,0000Year 5226,1227,4002,330,000000000Year 6300,000145,000351,0001,279,17901,230,00001,255,8120Year 7149,593701,82124,000846,700775,000354,000051,7850Year 894,593150,0000133,000334,000347,160927,30052,7000Total2,761,4761,637,7212,925,0002,541,7371,324,0001,931,160927,3001,508,89503
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