Carnegie Technologies Assessment - Market Segments and Decision Making

This report provides a market analysis of Carnegie Technologies, focusing on the Australian telecommunications sector. It examines industry trends, including growth and profitability, supported by a PESTLE analysis. The primary market segment is identified as the smartphone industry, with a focus on daily commuters and travelers. The report details the company's decision-making process, target markets (primary and secondary), and competitive landscape, noting the company's patented technology and potential competition from existing mobile application developers. The conclusion summarizes the key findings and recommendations for Carnegie Technologies' market entry and strategy in Australia. The report highlights the potential for growth and profitability in the Australian market due to high smartphone usage and the demand for high-speed internet access. References and a PESTLE analysis are included in the appendices.

Carnegie Technologies
Assessment – 3: Market Segments and Decision Making
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Table of Contents
Introduction................................................................................................................................2
Industry Trends..........................................................................................................................2
Growth....................................................................................................................................3
Profitability............................................................................................................................3
Primary Segment and Decision Making....................................................................................4
Major Market Segments.........................................................................................................4
Primary and Secondary Target Markets.................................................................................4
Competition................................................................................................................................5
Positioning Map for Organization..............................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................6
Appendix....................................................................................................................................6

Introduction
Carnegie Technologies has been selected for the assessment. The company is into
technological and communications products such as mobile devices, cellular core network
operations, and others. Some of the products of this company are Hi-Fi Voice, Bandwidth
Aggregation, Wireless Access Manager, and others. The company is US based and has the
potential to move into the international space with the technology. The market selected for
the company is Australian Telecommunication Sector. The company is oriented towards
serving the customers with the high speed access internet connections by leveraging on the
available network from nearby phones. This paper is concerned with the market analysis for
the company under various aspects.
Industry Trends
The understanding of industry trends helps the company in forming appropriate decisions.
There are various aspects that are looked upon while analysing the industry trends. This
section has considered three areas, namely, growth, profitability, and factors associated with
the PESTLE Analysis. PESTLE Analysis has been shown in the appendix. The PESTLE
Analysis has covered the likely interventions that are expected for this company if it operates
in Australia. The economic situation has been studied that shows whether the people will be
able to afford the service. The social aspect showed the orientation of the target customers.
The technological aspects showed the presence of technology in the country and the
orientation of the mass towards this. The legal and political factors cover the government
orientation and supportive rules and regulations available. The sub-sections below cover the
growth of the industry and whether it would be suitable for the company to enter, and
whether the company will be able to attain expected profitability.

Growth
As per the survey conducted by Delloite, the mobile use in the Australian market is growing
at an appreciable rate. At present, more than 80% of the people of Australia use smartphone
which is an improvement by 10% in comparison to the last year. The country boasts of
around 15 million smartphones in use. These 15 million are active phones and not those that
have been used and trashed. The Carnegie technologies can have good opportunity in this
country as the market is already aware of the smartphones. The use of smartphones have gone
so rampant that instead of people engaging with newspapers on the street, they can be seen
glued to their phones. This provides an opportunity for the companies that are looking
forward to increase the service usability of the smartphones through their creative mobile
applications. ‘Carnegie technologies’ has developed few apps that it will market to the
Australia which might be appreciated by these high rate mobile users.
Profitability
The profitability in this segment is good at present due to the high rate of smartphone use
among the customers. If the mobile application is liked by the users, then it is likely that the
company can gain appreciable profitability from the investment. The market of 80% mobile
users is huge. As per the report, the app development market is going to reach $100 billion by
the year 2020 at a global level. The Australian community is spending 37 hours a month
fiddling with their phones and the forecasted growth for the revenue from the mobile app was
$1.2 billion from the country. The substantial use of smartphones and applications require
high quality mobile networks and this is where the companies like Carnegie Technologies
can play its role. The total tablet sale reached 11.2 million in the year 2015 and the
smartphone sale went to 15.3 million. These grew further in the next year and are expected to
grow further with the promise of bringing more profitability to the existing and new players
in the market.

Primary Segment and Decision Making
This section is concerned with understanding the market segment for the Carnegies
Technologies. The company eyes for the various mobile users and has segmented the market
as discussed in the sub-sections ahead.
Major Market Segments
The major market segment of the company is the smartphone industry. As stated earlier, the
smartphone industry is huge and there is multitude of users engaged with the smartphones in
some way or the other. The focus of the company is to target those smartphone users. The
company has built various types of mobile application that works in conjunction with the
mobile network and local Wifi to strengthen the network access for the users. The company
believes that the market will prefer such technology that helps them get faster internet service
and track their data consumption. The overall target market covers users of different age,
economic level, and education level. The market is divided into various user types. Some of
them are early adopters who will accept the technology as soon it launches in the market,
whereas others will take some time in considering this new technology.
Primary and Secondary Target Markets
The primary target market of the company is the daily commuters and travellers who travel
places to places. These people face challenges in strong internet connection and, therefore
face issue in enjoying the technology to its fullest. Therefore, the company will be advertising
its mobile application to these customers. There are various applications from the company
that can make the life of these primary consumers easier. For instance, the Hi-Fi Voice and
Rich Messaging application will help the customers in making and receiving phone calls
from wherever they want and they don’t have to keep multiple numbers for different
locations. Another application, Bandwidth Aggregation, will help the customers in combining

the Wi-Fi and mobile networks together and gives faster internet speeds and reliable service.
The customers can enjoy improved video streaming and conferencing. The secondary target
markets are the individuals who are at the locations that receive limited network visibility and
they face challenge in using internet effectively. These customers face similar problem in
comparison to the primary. Only difference is that they remain static which will also help the
company give better calibration with the local network and faster service.
Competition
The company is coming into the market with the patented technology and, therefore,
considering this technology, currently there are no direct competitors for the company.
Therefore, the company can efficiently enjoy the blue water strategy for the Australian
market. The company has patented the technology used in the Bandwidth Aggregation.
However, for other applications it has developed such as Hi-Fi Voice, Wireless Access
Manager, and others, there are existing mobile applications at the local level that may pose
some challenge. In such scenario, the company can built its brand to ward off the local minor
competition and get ahead in the competition. Moreover, the competition can be handled by
providing free and strong service in the beginning which can be extended in the future with
the paid versions to gain the profitability.
Positioning Map for Organization
There are various mobile companies that are developing multitude of mobile applications to
cater to the Australian market. Though there are no direct competitors for the Carnegie
Technologies in the type of mobile application it is planning to market, yet it can be expected
that the existing large scale developers might prefer to enter into this attractive segment. The

diagram below shows the positioning map of the company by considering two factors, brand
and price.
Conclusion
References
Appendix
Given below is the PESTLE Analysis:
Political The country is a federal constitutional monarchy. The country has
witnessed stable government and, therefore, there are limited policy
fluctuations. The companies operating in the country are expected to be

equally oriented towards customers and profitability.
Economic The country has strong economy. The economy of the country kept
growing consecutively for the 17 years until it got hit from the global
financial crisis. The tax rates have been constant mostly which poses fewer
challenges to the companies operating in the country.
Social The people of the country are tech-savvy and around 80% of the
population is using phones. The people prefer to enjoy the technological
development. This can be helpful for the companies that are innovative
and prefer to bring new technologies on the table.
Technological The technological advancements are appreciable. Almost all the sectors of
the country is utilizing the technology in some form or the other to
complete their job with ease.
Legal There are no legal challenges that can hinder companies from operating in
the country. The only pre-requisite is that the company considers ethics as
its part and also work towards good future of the employees and the
society.
Environmental The companies operating in the country are expected to be environmental
conscious. Moreover, they are expected not doing things that can harm the
environment and jeopardize the livelihood of local people in any form.