Entrepreneurial Report: Market Attractiveness of Foldable Smartphones

This report examines the entrepreneurial opportunity presented by the launch of foldable smartphones, focusing on market and industry attractiveness within the UK market. It analyzes market size, growth rates, and the country's institutional context, including labor markets and political systems. The report also assesses the competitive environment, considering both direct competitors and the threat of new technologies. Furthermore, it explores cultural, geographic, and economic factors influencing market attractiveness. Industry analysis is conducted using Porter's Five Forces model to evaluate the competitive landscape, including the threat of new entrants, supplier bargaining power, consumer bargaining power, the threat of substitute products, and rivalry among existing competitors. The report aims to provide a comprehensive understanding of the factors influencing the success of foldable smartphones in the UK market, offering valuable insights for entrepreneurs. The report concludes by summarizing the key findings and their implications for a successful market entry strategy.

ENTREPRENEURIAL
OPPORTUNITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Market Attractiveness..................................................................................................................1
Industry attractiveness ................................................................................................................3
Target segment benefits and attractiveness .................................................................................6
Competitive and economic sustainability ...................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Responding to the potential business opportunity is one of the essential characteristic trait
of successful entrepreneurs. To explore and identify a business opportunity individuals must
conduct a thorough market analysis so that the proposed product and services can be developed
as per the needs of potential customers. Along with the analysis of market and industry
effectiveness the business plan must also integrate the economic sustainability so that
competitive threats can be eliminated and long term success of the venture can be assured (Sarti,
Darnall and Testa, 2018). The report will provide analysis of 4 domains so that new foldable
smart phone can be launched in the market. It will also evaluate the successful business strategy
for the proposed product.
Discussion of domains
Market Attractiveness
Marketing is the key context in concept of entrepreneurial bushiness. There are various
method that is different in marketing techniques. The market attractiveness is the major
competent for the identification of the market for the new product foldable mobile in market. The
various factor which let to combine the idea of market attractiveness. The factors are size of
market, growth, stability and competition which effects the firm in targeting the market
attractive segment.
The further elaboration of the factor are such as:
 market size and growth rate,
 country institutional context,
 competitive environment of region,
 other markets cultural, geographic and economic distance from the other competitive
market.
Market Size And Growth Rate.
The market and growth rate of the country is an important part which decide the
successful launch of the product in the market. If the market has stabilized growth rate there is
the maximum chance for tar development of the product. For making the portfolio decision there
is no shortage of information in market. The first attractiveness in the market is size of
market(Lassalle and McElwee, 2016. ). In the world of technological advancement everyone
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wants to run along with development of technology. So it is very important for a company to
identify the correct market for the launch of it product. The state of UK is large market foe the
technologism and electronic market.
After the identification of market, potential customer has to bee identified which will be
depicted to the company by market survey. There should be the primary researcher to understand
the consumption level of customer in the market so the company can be aware of there level of
purchasing power of customer.
Growth rate is other dependable topic that has to be considered so that company can
understand the level of flourishment of company (Hechavarría and Welter, 2015.). It is the
important part as for decision-making of firm on the factor whether the area is high growth rate
area or low growth are. For product the folded mobile, UK has been the esteem place for the
technological up gradement so it is the place of higher growth rate and will turn out to have
higher returns.
Country Institutional Context
The countries institutional context refers to the what is the level of market development,
the level of labour and product market, capital and openness of political and social system.
The political and social system affect the various factor of the economy such as the labour
market, product and capital market. In UK political system there is minimum labour market more
of the skilled labour(Lewin,2015). The government of UK used to support technological
advancement into country so it turned to very attractive for company launching folded mobile
there is openness in market so that the multinational companies can operate to the extent level so
that the barriers to development will be reduced.
There is the market for product development in UK is more important part which can be not
easily done in UK(Patel, 2019.). The companies have to pay a special emphasis on the
development of product as recruitment of manager and other skilled labour is not easy in the
market of UK.
Competitive Environment
The number of size and quality of the competitors in specific target market compose the
set of factors that effects the ability of company along with complete profitability. The complete
monitoring of competitor will help in analysis the outer environment. It will help in decision-
making of the company in analysis of the competitive in target market. The company has come
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with the special folded phone so there is not high level of completion is market. The level of
substitute is low as there is nor substitute of mobile phone still developed. The threat of new
industry in the market is high because of the technological advancement company has treated of
new technology is that the model turn to be outdates (Hechavarría and Welter, 2015.) In the
world of technology advancement there are many competitors in UK market. It will help in
decision-making of the company in analysis of the competitive in target market. The company
has come with the special folded phone so there is not high level of completion is market.
Other Markets Cultural, Geographic And Economic Distance From The Other
Competitive Market.
There are many more other factors that effect the market attractiveness for the product
development of folded phone in the market of UK. Cultural impact refers to the level of diversity
of the citizen in the country and what is there cultural adaptability. The trend in the market is to
be developed so the target market will have the trend in development of product. The next factor
geographic factor which contain all he areas for the development of the all the states of the
county. the availability of the product will be in all parts of UK as to increase the reach of the
folded mobile phone to each and every target customers. The trend in the market is to be
developed so the target market will have the trend in development of product. The next
importance facto is economic condition or audibility of the UK states(Covin and Slevin,2015.).
If there is unstable condition in UK then it very difficult to have launch of product. The
economic condition will help in identification of pricing and marketing strategies sor the
development of the product.
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The managers or the team of the organization will importance to all the factor of the
market attractiveness as it is the important part as selecting the target market and identifying
potential customer. The market attractiveness is the major competent for the identification of the
market for the new product foldable mobile in market. The trend in the market is to be developed
so the target market will have the trend in development of product. It will help in decision-
making of the company in analysis of the competitive in target market.
Industry attractiveness
Industry refers to place where product is manufactured by going through various
processes that consist of different stages includes raw material, work in progress and finished
goods. Tourism industry is growing at a fast pace as compared to other industry. It helps in
creating demand for consumers that will bring effectiveness in working so that it will produce
different factors that will affect demand of consumers. Through tourism industry country is
growing fast in the economy that bring more opportunities in the future (Bowtell, 2015). This
will help in expansion at international level that motivate employee to do work.
Industry attractiveness is the approach that is provided to marketer for earning profit in
the future. This will be determined by five forces model that help in gaining competitive
advantage in the marketplace.
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PORTER'S FIVE FORCE MODEL
It refers to approach that helps in determining competition in the marketplace. Before
entering into market it will be analysed through this model that competition is important factor
that affect functioning of company in the marketplace (Wang and Scheinbaum, 2018). It
consists of following elements such as:
Threat of new entrants
New entrants are coming in the market by offering different opportunities and gaining
competitive advantage in the market. They bring new product and market share that will fulfil
needs and demands of consumers. There are so many existing players in the market that create
more competition in the future. There are so many barriers that create fewer chances of being
enter into market. Foldable smartphone industry is coming into market so it is becoming threat
for other mobile phone shops in the market. Customers always try to purchase new product and
that facilitate them to use that product effectively. It is playing good in the market that will help
in gaining different perspective for future (Sohn and et. al., 2015). As new entrant come with
differentiated marketing strategy that attract more consumers towards it. Consumers are the king
of market so company have to manufacture product accordingly that helps in meeting
expectation of consumer. Various strategies that will be used in selling foldable smartphone in
the marketplace. Competitors of foldable smartphone company is laptop, tablet or smart watch
companies.
Bargaining power of Supplier
This includes power of supplier in bargaining with companies related to supply of raw
material in the company. Availability of other supplier will help in gaining competitive
advantage for foldable smartphone company. For determining power of supplier substitute
supplier plays an important role. Fewer the supplier in the market there bargaining power is more
that will create problem from marketer in purchasing raw material from supplier. This also
include switching cost that will depend on supplier as there are so many substitutes available in
the market (Abubakar, Anasori and Lasisi, 2019). Due to its bargaining power company have to
suffer loss as they are not ready at rates as there are less supplier so company have to buy it and
that will bring loss in the future. There are fluctuations occurred due to different supplier that are
providing raw material to other competitors in the market. They influence marketer by providing
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different aspect such as uniqueness, cost effective and quality that is being provided to it for the
future course of action.
Bargaining power of consumer
This deals with consumer's power while purchasing product from the market. In this
consumer is putting company in pressure that affect price sensitivity as different consumers are
doing bargaining so that will affect its operation in the marketplace. Consumers is having lot of
power that will affect various perspective for the future course of action. Consumers are
comparing prices from its competitor that will bring more effective decision that is made by
them in purchasing particular product (Bensi, Carminati and Nelli, 2016). Foldable smartphone
company is taking measures that will reduce consumer power by implementing different
programs and manufacturing differentiated product from its competitors. Consumers are smart
nowadays they are comparing prices through different sources such as online, or getting
information from other consumer that are buying particular product. Consumer is having lot of
power while bargaining in the market.
Threat of substitute product
There are several substitute products that are available in the market so consumer is
having an option to shift from one product to another. Foldable smartphone company is also
having different substitute product so consumers may shift from it to other that will decrease
sales and profit of the company (Fadda and Sørensen, 2017). there are various products to which
consumer will shift from one to other. Consumers buy product while seeing its price in the
market and that will suitable to them for the future course of action. Foldable smartphone is also
having many substitute so customers are shifted to them. This will affect functioning of company
and evaluation of industry attractiveness will be considered.
Rivalry among existing competitors
This will be determined by various competitors that are available in the marketplace.
Competition is playing important concept that will influence different aspect in the marketplace.
As foldable smartphone company is having many rivalries that will affect business operations.
There are so many competitors that are offering low cost to consumers so foldable smartphone
company is having rivalry and create intense competition in market (Stindt and et. al., 2017)..
As competitors are taking advantage by implementing innovation into business. Different
company is using their own advertisement expenses that enhance more competition for existing
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rivalry in the market. Competitive strategy will also help in providing different aspect that will
be gaining more profit in the future. Capability of competitor is more as compared to foldable
smartphone company that is new entrant in business.
(Source:Porter Five Forces Analysis: The Example Of IKEA, 2017)
Target segment benefits and attractiveness
The market segment must have attractiveness so that strong profitability goals can be
achieved for both future and current requirements. Market segmentation helps to divide large
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target audience into homogeneous and smaller segments. The foldable smart phone will be
launched in entire UK, however since it will not be the requirement of every individual suitable
segmentation and targeting methods are used for this purpose. The most common approaches
which can be used for the market segmentation are demographic, behavioural, geographical and
lifestyle. The smart phone users are available in huge number across UK. These users are
classified on the basis of age, gender, socio-economic groups and occupation.
The segmentation based on these factors is known as demographic segmentation and is
most suitable for the foldable smart phone. The targeted customers of the smart phones will of
age group 15-55. This age group people are potential user of smart phones and in their engaged
life they will prefer the foldable phones so that smart phones can be easily carried and stored.
The segmentation of the consumers in smaller market helps to deliver the more impactful
message. The targeted market has large size as well as potential (Sánchez-Fernández, Iniesta-
Bonillo and Cervera-Taulet, 2016). Thus, venture is expected to have high profitability and long
term sales. One of the attractive feature of the market segmentation is vast rang of potential.
There are market segments which are not fully explored or identified by service providers.
Such market segments can help to enhance market shared and to generate business. The
targeted market has not yet experienced such products. There are huge service providers which
provide smart phones but there are no such choices for the foldable smart phones. Thus, it can
offer higher profit margin. One of the feature which influences the market segment attractiveness
is he competitive advantage. The quality and extent of competitiveness plays a dominating role
in segment effectiveness. For example if there are strong competitive forces in the chosen market
segment then service providers have to work harder.
It will also involve higher cost in terms of investment n advertisements and incremented
market share. For the proposed opportunity of foldable mobile phones at present there is no
competition and thus the chose segmentation can be considered as very impactful. The
fundamental advantage provided by market segmentation is that service provider find it easy to
define potential consumers through similar needs and requirements instead of searching them on
diversified locations.
Thus, segmentation strategy helps to improve and develop customer based marketing
strategy so that desired return on investment can be obtained (Neuts and et.al., 2016). Along with
the better service delivery to customers one of the critical benefit of using market segmentation
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is that through this approach marketing failure risk can be reduced to a great extent. Since
operational segment is well defined it becomes easy for the service provider to identify the
different aspects of marketing and to make better decisions. The similar requirements of the
segmented group also helps in consistent branding and positioning (Sánchez-Fernández, Iniesta-
Bonillo and Cervera-Taulet, 2016). Through market segmentation it is also possible for the
business to identify similarity as well as differences among targeted population so that product
can be made more popular and famous.
In the segmented group though foldable smart phones is need of all individuals but
personal preferences may vary slightly. For instance the teenagers may need application for
supporting wide range of games while for the people above 40 years of age group customers may
need mobile to support more social networking sites along with the foldable feature. The
segmentation gives and opportunity to convert infinite network of potential customers into
manageable groups. Through segmentation service providers can produce commercial advantage
by enabling safe and powerful marketing decisions. The service providers can also analyse each
segment so that profitability map can be developed.
Since foldable smart phones will be completely new to the market it will surely give
commercial advantage to the vendors. Another benefit of using attractive market segmentation is
that it makes advertisement and promotion process more influential and cost effective (Dheer,
2018). For a specific segments service providers can choose customized way of promotion.
Similarly, for the ventures which care already serving other services in market, existing segments
may not prove to be well suited for the foldable smart phones.
Thus, it is suggested that for different products different and suitable segments must be
identified. It has been also identified through market analysis that with the narrow market size
the distribution channel length is also reduced (Ahmadi and O'Cass, 2016) . For instance since
folded smart phone will be launch in particular small segment only there is always an option to
reduce the ineffective and unnecessary distribution channel. Another benefit of market
segmentation is precise branding. Since the venture will be launching foldable phones for the
first time branding must be emphasised strictly (Gavinelli, 2016). The aspects such as customer
service, price, quality, design, demand and customer service are formulated and modified as per
the segment needs.
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Hence, market segmentation can increase the brand visibility so that more and more
audience can be attracted towards venture. The ultimate goals of increasing sales and meeting
profitability targets are also encouraged by the effective segmentation. However, it is also
possible that some potential buyers are not included in the segmented market but after successful
establishment of the business it is also possible to gain support of such customers. For instance it
is also possible that people above 60 years of age or children below 15 years are also interested
to buy the folded smart phones but they are not included in the targeted population. In such cases
the good quality of product and influence of segmented people will motivate them to purchase
the product.
Competitive and economic sustainability
At present the foldable smart mobile does not have any competition since the existing
service providers of smart phones are not providing the feature of foldability. Thus, on the basis
of cost effectiveness, suitable segmentation and promotional strategies the venture may achieve
success. However, it can be tough and challenging for the business to retain the same extent of
the popularity and growth in future as well (Camacho Delgado, 2015). Taking inspiration from
the opportunity new emergents may also enter in market with similar advancements in low
prices. Thus, from the sustainability perspective business must be capable to retain its economic
growth. The economic sustainability is defined as the practice which supports the long term
development and profitability without generating any negative consequences related to cultural,
social and environment aspects.
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