Factors Enhancing Sale of Telecommunication Devices with New Features

Student’s Last Name 1
Integrated Business Management Project
By (Name)
Course
Professor
University
Date

Student’s Last Name 2
Literature Review
Introduction
This chapter thoroughly examines the available literature covering the factors that
may enhance sale telecommunication devices with the help of new features such as no lock
SIMs and phone plans. The chapter further analyzes the projects’ specific objectives which
are: identifying the specific challenges and issues faced by the consumer in paying monthly
handset charges, analyzing the benefits gained by using the no-lock contract SIM and phone
plans, analyzing factors that may encourage the consumer to go for the no lock plans and
analyzing the general satisfaction rate of the consumer. Existing literature answering our
research questions will thoroughly be analyzed in this section. This section further scrutinizes
various theories that have been previously formulated explaining the concept of added futures
such as no lock plans in the telecommunication industry. Existing theories that hypothesized
the effect of new telecommunication features in SIMs and phones will also be scrupulously
put to scrutiny. An empirical framework served to provide relevant empirical data that
supported the projects general objective. Secondary sources ranging from books, peer-
reviewed academic journals, published tech magazines, and newspapers also will furnish the
project with information and will serve as the major sources of data in this section. The
aforementioned data sources will be systematically cited and referenced. The section will be
segmented under various subtitles namely: theoretical literature review, empirical review,
research gaps, and conceptual framework. While the theoretical literature review largely
focuses on dissecting existing theories concerned with the topic, empirical review effectively
serves to provide insights about existing literature focusing on the topic. The research gap
sub-section tries to identify and remind researchers on the areas in our topic under which
little or no research has been done. A diagrammatic conceptual framework and a summary
will also be drafted to recapitulate the contents of the chapter.

Student’s Last Name 3
Theoretical Literature Review
In a research project, the theoretical literature review is important as it brings forth
existing theoretical precepts that have not been rigorously assessed and examined (Dembek,
Singh and Bhako 2016 p. 231). The section purely deals with existing theories concerned
with the topic under investigation. This projects theoretical literature review is focused on the
evaluation of factors that may influence the growth of a telecom firm due to the launch of
new features on the firm’s products SIM cards and phones. The theoretical review also
investigates the investigated company’s historical development and breakthrough into the
telecommunication market. In May 1999, Air Touch tele-communication Company merged
with Vodafone to form an amalgamation with a capital amounting to 75 billion dollars
(Majumdar, Yaylacicegi and Moussawi, 2012, pp. 141). In November, the same year,
Vodafone merged with Mannesmann to form an amalgamation worth 180 billion dollars.
Since 1999, Vodafone, as a telecommunication company, has experienced tremendous
growth in capital and customer base. The telecom giant has also been adding features in their
devices so as to remain competitive in the telecommunication market. For instance, when the
User Equipment feature was first programmed in 2016, the Vodacom group was amongst the
first telecommunication groups to purchase the feature (Lim et al., 2016, pp.1). Other
substantial features are location detection and digital fingerprint specifications (Etchegoyen,
2016, pp.2). The no locking feature is another feature adopted by the company so as to keep
itself relevant in the telecommunication market (Bhogal et al., 2014, pp.1). To keep up with
the increasing competition due to ceaseless inventions, innovations, modifications, and
improvements, Vodacom group has been regularly adding pleasant features in their SIM and
mobile devices.

Student’s Last Name 4
Ideally, businesses aim to make maximum profits by incurring at least the cost as
possible. This is the reason why companies like Vodafone are always struggling to compete
for customers amongst other telecommunication mobile manufacturers such as Huawei,
Apple, Samsung, and Nokia. Each of these giant companies fights to get customers from a
single market of consumers. The need to compete with others is the mother of innovation and
invention. Because telecommunication industries will run bankrupt if they do not compete for
customers, they are forced to become as creative and innovative as possible so as to come up
with new features and take the market. They are thus forced to spend large amounts of money
in research and creativity. Telecommunication companies are thus faced with high costs so as
to improve their research and technological advancement department. Each of the
telecommunication companies is aware that for large profits, large costs have to be incurred.
In economics jargon, for a competitive market structure, marginal revenue equals marginal
cost (Kubick et al., 2014, pp. 675). For every dollar tele-communication aims to profit, the
telecommunication company should be ready to part with it in the form of research
investment and technological advancement. Investments usually bring forth good returns. In
many cases, the returns achieved from an investment surpass the sacrifice made in the
investment.
In the telecommunication sector, after a product’s launch, the market reaction slowly
consumes the product intensity. We do not expect a product to sell a million units in its first
hour after being launched unless the product was unnaturally anticipated. However, a few
days after launch, the product is widely demanded. The product’s company owner sells
millions of units at an exceedingly exponential rate. The market is set to consume the market.
Later, after the product is now readily available and almost every entity in the market, the
product’s sales generally decrease. For instance, if Vodafone launches the no-lock SIM and
phone plans, the plans may not sell at a high rate during their early stages. However, after a