Carnegie Technologies Assessment – Market Segments and Decision Making

This report assesses Carnegie Technologies' potential in the Australian telecommunications market. It begins with an overview of industry trends, including growth and profitability, supported by a PESTLE analysis. The report delves into the mobile market's expansion and the increasing smartphone usage in Australia. It identifies key market segments, including the smartphone industry and specific user groups like commuters. The report also examines Carnegie Technologies' competitive landscape, highlighting its unique, patented technology and potential challenges from existing mobile application developers. The analysis focuses on the primary and secondary target markets, with a strategic emphasis on decision-making processes. Furthermore, the report includes a positioning map and concludes with a summary of the company's market entry strategy and recommendations for success in the Australian market.

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
Market Segments Overall...........................................................................................................4
Industry information...............................................................................................................4
Competitors, Strengths and Weaknesses................................................................................5
Primary Segment and Decision Making....................................................................................5
Major Market Segments.........................................................................................................6
Primary and Secondary Target Markets.................................................................................6
Competition................................................................................................................................7
Positioning Map for Organization..............................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10
Appendix..................................................................................................................................11

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 (About us, 2017). 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 (Pattak, 2007). 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 (Phipps et al, 2016). 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 (Mobile Consumer Survey, 2016). 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.

Market Segments Overall
The market in which the company is entering consists of huge number of mobile developers.
The following subsections reflect on the current industry and the existing competitors, their
strengths and weaknesses. Also, the strengths and weaknesses of Carnegie Technologies have
been considered to understand where it fits in the market.
Industry information
The mobile and tablet industry has grown outrageously in the country and so have the mobile
and tablet applications. It has transformed into a multi-billion industry worldwide. The
mobile application is being utilised by almost all the industries whether it is broadcast media
or it is the companies that has just started its business. The mobile application market is
booming and constantly creating job opportunities to lots of people. The Australian market is
attracting businesses to the tune of millions of dollars. As per the IBISWorld Surveys, at
present the Australian mobile application development market is crowded with more than 350
app development companies. The annual growth rate of this industry at present is estimated at
177 per cent (Mobile Consumer, 2015). The mobile and tablet application is being created in
all the segments whether it is education, gaming, finance, maps, books, connectivity, video
streaming, and others. It has led to the multitude of business opportunities for new and
existing organizations. The entrepreneur present in the mobile application is from the variety
of backgrounds such as software developer, marketing, venture capitalists, designing, and
others. The mobile application development is diverse and businesses are being developed on
the utilities that were non-existent few years ago. One of the examples is the purchase of
‘Chomp’ by the Apple. Chomp is a mobile app search engine, developed in Australia, which
is now integrated with Apple app store and is used to search the entire store helping
customers in easy access to desired app. Most of the businesses such as broadcasting media,
offline sellers, and others are not viewing the application market as the new competition but

the way to extend their market and cater to the new customer segment. This has given
opportunities to the mobile app developers and they cater to these companies in building their
mobile presence.
Competitors, Strengths and Weaknesses
There is limited competition in the segment this company is willing to enter. The reason is
that the technology it will be bringing in the market has been patented and no one else can
use this technology at present. However, there are other mobile applications that have been
developed by the company that can be in the competition with the mobile developing
companies such as Outware, Buzinga, Appfutura. These companies develop multiple mobile
applications to cater to the growing demand of the market. However, there are no direct
competitors to this company. The competition is mild in the segment company is entering.
The company, with its good brand value, can gain market quickly. There are some smaller
players in the market who are into the segment as same as this company to provide network
convergence facilities but they are not successful enough due to the lack of solid technology
at hand. The network analytics mobile applications exist in the market but they are not
reliable enough and the customers are looking for the application that can display accurate
data. The Network Quality Analytics and Advanced Call Diagnostics mobile application by
the company is an appreciable effort to ward off the competition and build strong hold in the
market. The company is also into cable operation and MVNOs which it can extend in the
coming days if the current business succeeds in the Australian 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. The company will
not face challenge in identifying the market segment as the presence of individuals on the
online communities can be easily targeted by the company can their needs can be fulfilled.
The mobile application users or the smartphone users range from various fields such as
school and college going individuals, working class, retired individuals, working and non-
working women, and others (Kotler et al, 2015). These segments have different
characteristics. These customer markets have different needs. The working class and the
students from schools and colleges spend some of their time in commuting while the other
segments spend their time at one place. This can help the company decide which one to
consider the primary target market for the mobile application and which one to consider the
secondary.
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
(Evensen et al, 2011). 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
Overall, it can be stated that the Australian market is lucrative opportunity for the company to
enter. The company should be entering into the market with the primary target in
consideration. There are no direct competitions for the company at present which can be the
golden opportunity to attract the customers. The only risky part in the business is whether the
customers will prefer using the new technology that is being brought forth by the company.
The use of technology such as connection aggregators are less preferred due to the perception

of more battery consumption less usability. The company might have to work towards this
direction to build its brand and position itself as per the diagram shown in the positioning
map developed above. Moreover, there are high number of mobile phone users in the
Australia (around 80%), which is likely to grow further in the days to come. This is the right
time for the company to enter into the market as the customers must be looking for the
network connections that can fulfil their easy access to the internet. It is obvious that the
internet is where 37 per cent of the people of Australia can be found and, therefore, to keep
their inertia intact, it is necessary to have a service that can help in getting faster internet
connection. Carnegie Technology has the ability and technology to cater to such demand.
This will help the company gain right profitability from the market after getting established
brand presence in the market.

References
About us. (2017). Carnegie Technologies. Retrieved 7 January 2017, from
http://carnegietechnologies.com
Brusse, C., Gardner, K., McAullay, D. and Dowden, M., 2014. Social media and mobile apps
for health promotion in Australian indigenous populations: scoping review. Journal of
medical Internet research, 16(12).
Evensen, K., Petlund, A., Riiser, H., Vigmostad, P., Kaspar, D., Griwodz, C. and Halvorsen,
P., 2011, June. Demo: quality-adaptive video streaming with dynamic bandwidth aggregation
on roaming, multi-homed clients. In Proceedings of the 9th international conference on
Mobile systems, applications, and services (pp. 355-356). ACM.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Mobile Consumer Survey 2015 | Deloitte Australia | TMT, mobile devices, social media,
internet speed, online shopping. (2017). Deloitte Australia. Retrieved 7 January 2017, from
https://www2.deloitte.com/au/en/pages/technology-media-and-telecommunications/articles/
mobile-consumer-survey-2015.html
Mobile Consumer Survey 2016 | Deloitte Australia | Technology, Media &
Telecommunications report. (2017). Deloitte Australia. Retrieved 7 January 2017, from
http://www.deloitte.com/au/mobileconsumer
Pattak, D.C. (2007), An investigation into Nokia-Microsoft Strategic Alliance: Joining forces
in the global Smartphone Industry.

Phipps, L., Alvarez, V., de Freitas, S., Wong, K., Baker, M. and Pettit, J., 2016, October.
Conserv-AR: A virtual and augmented reality mobile game to enhance students’ awareness of
wildlife conservation in Western Australia. In Proceedings of the 15th World Conference on
Mobile and Contextual Learning (mLearn 2016), Sydney (pp. 24-26).
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