First Mover Advantage in Smartphone Industry

This article discusses the concept of first mover advantage in the smartphone industry and analyzes its impact on market growth and competition. It also explores the different stages of the smartphone industry life cycle, including introduction, growth, maturity, and decline.

Three different question in
Project

Table of Contents
Question A.......................................................................................................................................1
1. Was there a first mover advantage in smart phone industry...................................................1
2. Justifying where in its life cycle the smart phone industry to be ...........................................3
Question B.......................................................................................................................................5
1. Appraise whether Coca Cola gain a competitive advantage...................................................5
2. Describing how Coca Cola balance global integration and national differentiation...............7
Question C.......................................................................................................................................8
1. What strategic action for a company should make next.........................................................8
REFERENCES..............................................................................................................................10

Question A
1. Was there a first mover advantage in smart phone industry
First mover advantage is the marketing strategy which is gained by the company while
occupying a market segment. Or else, first mover is a company that gain a competitive
advantage by being a first to bring a new product and service to a market. So, by using First
mover advantage Framework, it is easy to determine that a smart phone industry is first mover or
not:
Clam water: It is the first quadrant in which it is easily determine that things which run
under this are used for both long and short run. As the market growth is slow but start up can
scale successfully (Flor and Moritzen, 2020). In the smart phone industry, it is analyzed that
though there is a strong brand awareness but the resources are less crucial and that is why, when
the small traditional phones are fall under this category.
Technology leads: In this, rapid development of technology but due to slow market
growth, first mover advantage is actually worse than a useless because they beaten by fast
follower strategy. Like, Apple, who provide best iPhone for their customer but actually with the
slow market growth, company is loss the First mover smartphones. So to stay within a market,
company has to make sure that it provide new Android phones on the horizon with an increase
in pace of innovation.
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Market leads: As the market is growing, there is an advantage of being in at start to
capture this growth, also, it is easy to keep the product as advanced technically as rivals. For that
the company have to so unique things which help to attract customers. For example, in the smart
phone industry, Xiaomi will sharpen its focus on its own Mi stores to sell its wares and this
strategy is consider the best for home market and also, offering high quality of product in low
price is lead the company at top in smart phone industry (Smirnov and Wait, 2020). So, this
reflect that knows how to manage the work in such a good manner which help to attract new
market share and able to exploit these opportunities.
Rough seas: It is represent as a biggest challenge for start-ups because a good
investment is required in research and development department with large scale of distribution.
Under this, smart phones lies because each new generation brings a new competitor such that
BenQ, then comes HTC, after that Xiaomi and now Vivo or Oppo. This chain clearly reflect
that companies only exist when they provide new product in order to gain huge competitive
market within a firm by complying with new and advance technologies.
This is also justifies that smartphones are is a first mover advantage, because it grew fast
and the industry also do strong marketing and distribution in order to sustain a strong
competitive advantage in a market (First move advantages framework, 2019). Also, the
technologies within a industry is also change and companies are also make sure that they
complying with the new techniques because other technologies are rapidly obsolete. So it can be
stated that smart phone industry are providing new gadget and keep adding new features in order
to meet the demand of customers by sustaining a brand image at further level of success.
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2. Justifying where in its life cycle the smart phone industry to be
Among all stages, smart phone industry is lies under the growth stage because the
industry provide the range of new product and there is around 74% of an increase from the other
stage. As the above graph also shows that from 2015 to 2019, only android phones are used by
the people as compared to iOS and windows phone. The increment shows that the industry is fall
under the growth stage because the usage of android phones is increases up to 80% while the
sale of other phones are decreases.
Life cycle stage of smart phone industry
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Introduction: Before introduction of any product, there are various promotion and
marketing going to be in advance in a market. Even there is no surety that company get to know
whether the product will make or break in market during its introduction phase, but both
promotion and marketing of smart phone is very high. The only thing which is explained in this
stage is about promotion and marketing styles, so it is analyzed that other things are missing
like, how the product in promoted in market (Ercan and et.al., 2016).
Also, the stage explain only heavy cost incurred during this stage and that is why, it is
also known as a heavy spending phase. On the other side, stage also determine how the
competition is reduced by meet the demand of customers which is well explained.
Growth: This stage shows that customer are ready to take a product and demand of
product is increases. Such that by developing high marketing and advertising strategy, industry
is able to meet the demand of a customers and in the same way, smart phone industry is also
make sure that before introducing the product in market, companies have to invest a huge
amount in its promotional strategy so that it may lead to generate the revenue as well (Alonso-
Stenberg and et.al., 2019). Under this stage, it is well explained that mobile phone went from
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being a minority user groups to an essential of a life and this in turn shows that the growth of a
normal mobile phone to android is increases.
Not only this, in the years from 1998 to 2000, there is a suddenly explosion as a rate of
using android phones up to 75% to 80%. So the data clearly reflected that smart phone industry
is relied upon this stage only, while on the other side, the stage do not specify the things which
needs to be consider while introducing new product in market. So it can be stated that it is
missing.
Maturity: If industry reaches this stage, it means sales become decreases, also due to
high prices of the product, sales is decreases. During this time, company gave to think that
reduce the prices. For example, if there are two companies and both selling smartphones. In
which one launches 6 months earlier and one of them launches yesterday at same price. So
people prefer to buy the product which is launched yesterday because consumer generally prefer
latest and fancy ones and the product also contain best features (Perera, Shigeno and Sumita,
2018). So, in this stage, it is analyzed that there is a need to provide innovative product to
increase demand and smart industry is completely relied upon the advance technologies and this
stage well explain the situation where the sales may fall.
Decline: In this stage, companies are tend to attain their product alive but once the
product is introduce in market, it is essential that it will be decline. It is so because of the change
in customer behavior and they also shift towards new product which force companies again
introduce new product (Brondoni, 2020). As a result, when the product is in decline stage, it
means company loss all of its share within a market due to deterioration of sales and increase in
competition. Even the price of the product is also reduced. For example, Nokia, the firm who
have a strong base when it newly introduce in market but after facing strong competition and
evolution of smart phones with advance features, company's sales is decreases.
Therefore, it is analyzed that the the life cycle model clearly explain smart phone
industry focus on every stage and try to provide every best product to their customer which in
turn leads a business towards further level of success.
Question B
1. Appraise whether Coca Cola gain a competitive advantage
Being a brand image at international market, it is analyzed that Coca Cola is also sustain
the competitive advantage. As the brand sells its product in more than 200 countries and that is
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why, there are many sources which is shows that quoted firm gain a competitive advantage from
being an American Company, such that:
Strong relationship with other countries: America has a strong relationship with other
countries because the trade agreement with America is strongest and being a super power in a
world, country keep maintaining good relationship between other countries which in turn help
Coca Cola to sustain the brand image at international level (Schischke and et.al., 2016). For
example, Coca Cola currently operate within 200 countries and company's biggest dealer is
McDonald's' which is also spread in all over the world.
Large supply and distribution network: The company also take an advantage from being
an American company because the supply and distribution network is large in a world. Being a
developed country, there are wide range of transportation facilities available for the company
through which it supply the product at world wide. Also, there are many vending partners who
also work closely with its customers and country also know how to maintain a strong
relationship with the suppliers.
Investment in advance technologies: America is a strong and super power in the world,
that is why, it provide range of techniques through which Coca Cola may use in order to attract
the customers and this in turn leads to stay strong within a firm (Waller, 2020). These
technologies are used in marketing purpose and quoted firm is also well known for its great
marketing capabilities. Not only this, company also invest in digital technology for connecting
better with its customers and now it uses great video advertisement. So, it is consider a benefit
for the company in order to gain high competitive advantages like, Coca Cola also uses
technology to help their employees and also hire new and talented employees for a firm.
Product portfolio: Being a strong financial performer, company offer the range of
product to their customer which is not possible in its others competitor. Even many of them are
highly market leading brand who are so popular in market. Among all, company's soft drinks,
water, juice and plant based beverage are consider the best product which attract range of
customers towards it (Krishnaswamy, 2017). This in turn leads to enhance the customer base and
even the product are good in flavor and taste which means that there is a strong customer loyalty
which is another source of the competitive advantages.
Therefore, it is clearly reflected that being an American company, Coca Cola gain high
competitive advantages and this in turn leads to sustain a brand image at global as well.
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2. Describing how Coca Cola balance global integration and national differentiation
Global integration is the degree to which a company is able to use same product and
methods in other countries while differentiation is all about how the company is present the
different variety of product from its rival firms. As Coca Cola is one of the well known firm that
which also uses many strategies in order to balance out between global integration and national
differentiation. Such that under global integration, Coca Cola uses Bartlett & Ghoshal Model
which indicates the strategic option for a business in order manage the international operation
(Laszlo and Zhexembayeva, 2017). Such that under this method, company uses global strategy
in which company is focused upon the highly centralized products and also focus on the
efficiency by offering best product which help to increase the financial performance of the
company .
In addition to this, it is also analyzed that because of high standardized products,
company is able to attract range of products at global level and on the other side to manage the
global integration, it may also uses transnational strategy which is a combination of a
standardized strategy and multi domestic strategy (Reed and et.al., 2020). Through this method,
company is able to maintain the need of a customer in order to provide the same product in a
market. So it is analyzed that to gain high competitive market within a market, company is ready
to share the expertise and for that they comply with the advance technology and staff members
so that they will ready to analyze the demand and also sustain the brand image at international
market.
On the other side, for national differentiation, Coca Cola also uses Porter generic strategy
in which the firm is also make sure that it provide unique quality product which in turn leads to
attract range of new customers towards it. It uses differentiation strategy under which firm
attempts to be diverse from their competitor by adding unique things into the product in order to
make the product valuable or unique (Doval, 2016). Such that in the context of Coca Cola,
national differentiation is attained through superior quality product which actually surpasses to
the nearest rivals and high brand image as well as recognition. Moreover, the company have its
well known bottle which differentiated itself from other firms. Not only this, the marketing style
of the company is also make its different from others, in every year, company spend lots in its
marketing and promotional strategy which helps to make the brand globally.
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As there are many factors which leads a company differentiate from other firm such that
marketing activity. Such that the firm uses traditional form of marketing activity such that TV,
campaign and also company invest lot of amount in the marketing sector which in turn leads to
draw attention of many customers towards it. While on contrary, there are many rival firm which
do not spend amount in the marketing activities and that is why, they do not attract range of
people towards it. But, in the case of Coca Cola, now it also uses digital technology which in
turn leads to attract massive groups as well (Tien and Hung Anh, 2018). So, it is reflected that
with the use of effective marketing styles, company is balance global integration and national
differentiation.
In addition to this, it is also analyzed that company's national differentiation strategy is
its marketing style and activities which in turn make the company global. Such that it also uses
different product line i.e. carbonated soft drinks market which in turn help to increase the market
share (Fuertes and et.al., 2020). So it can be stated that with the help of unique marketing
activities such that social media, Coca Cola campaign, it is able to attract range of new
customers towards it. Also, under this with proper balance between global strategy and national
integration, company is able to become a global brand among all the companies.
Question C
1. What strategic action for a company should make next
The chosen firm for this section is Apple which is top brand that is operating under
smartphone industry and as per the current scenario, for strategic action, there are various
recommendation that help the company to sustain the brand image. For that, Ansoff growth
vector matrix which help to clarify the company in which direction the company should move so
that it will gain a best market share (Waller, 2020). Under the model, there are four quadrant
which also assist the firm to analyze what should be the next step which help to sustain the brand
image. These are as mention below:
Market penetration: It is all about to sell existing product within an existing market and
through this method the company is able to offer the best product and also maintain the customer
base at local level. In the context of Apple, the firm is operating at global level and it mainly
operate in more than 24 countries. So it is stated that Apple is engage in market penetration
strategy through effective application of a marketing strategy and with the help of high level of
efficiency, company is sustaining its brand image within local market.
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Product development: It means that developing new product and then sell the same to
the existing markets and through a new product development company is only updating the
features and then sell it into a market (Alfonzo, Cerquitelli and Scinicariello, 2019). That is why,
Apply makes regular investment in its research and development department in order to make
sure that it easily developed new product in order to meet the define aim.
Market development: It is all about to finding new market for existing product and this is
help in IT industry. In the context of Apple, company is always find new market so that it will
sustain the brand image at global level and as a result, it will become a top leader in the
smartphone industry. Such that currently the company is focus on the Asian market so that it
will help to enhance the market share and this in turn leads to affect the revenue in positive
manner as well.
Diversification: it means that developing new product and then sell the same into new
market. Though it is consider one of the riskiest strategy among all because it is not easy to
survive in totally new market with totally new product. That is why, company may choose many
strategy in order to enter into new market such that vertical and horizontal integration.
Among all, it is suggested to Apple to use diversification starter under Ansoff growth
vector matrix because the company has a strong financial performance and that is why, they can
easily invest into new product such that currently the company provide different new product i.e.
Apple watch, Apply pay for mobile payment and digital wallet, Apple credit cards (Chang,
Eggers and Keum, 2017). So, In order to move forward, it is suggested to the firm to offer Smart
TV where consumer assess all the variety of application such that Netflix, Amazon prime etc.
This is completely new concept and company may start it from India because till now no
company offer such thing with advance technology. Though Xiaomi and Samsung offer the LED
but it did not contain advance features and that is why, providing this product into totally new
country will help the business to sustain the brand image and also enhance the market share as
well.
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REFERENCES
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Chang, S., Eggers, J. P. and Keum, D., 2017. Market Relatedness, Technological Relatedness,
and the Dynamics of Organizational Growth. Columbia Business School Research Paper,
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Online
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