Grey Mobile: Market Analysis, Competitive Advantage, Strategy Report

This report provides a comprehensive market analysis of Grey Mobile, a mobile phone manufacturer. It examines the competitive landscape, including key competitors and their strategies. The report utilizes various analytical frameworks such as Porter's Five Forces, PESTEL analysis, and industry life cycle analysis to assess the market dynamics and identify potential threats and opportunities. It delves into Grey Mobile's market share, buyer preferences, and sub-strategic groups within the mobile phone industry. The report also explores the company's sources of competitive advantage and discusses the trends and implications of outsourcing manufacturing within the context of the Cesim simulation. The analysis offers recommendations for Grey Mobile to sustain and improve its market position. The report concludes with a discussion of the key findings and their implications for the company's future strategy.

Strategy

TABLE OF CONTENTS
1.Introduction...................................................................................................................................1
2. Market Analysis .........................................................................................................................1
2.1 Competitors ...........................................................................................................................1
2.2 Geography and Technology ..................................................................................................1
2.3 Buyer's preference market Segmentation .............................................................................2
2.4 Sub-strategic Groups in Mobile Phone Industry....................................................................2
2.5 Market Shares .......................................................................................................................2
2.6 Porter Five Force Analysis ....................................................................................................3
2.7 Power of Complement providers..........................................................................................4
2.8 Industry Life cycle Analysis .................................................................................................4
2.9 PESTEL Analysis .................................................................................................................6
3.Sources of competitive advantage................................................................................................7
4. Outsourcing Manufacturing ......................................................................................................12
4.1 Definition and Scope ...........................................................................................................12
4.3 Trends of manufacturing outsourcing .................................................................................13
4.4 Outsourcing in Cesim .........................................................................................................13
Recommendation ..........................................................................................................................13
Conclusion ....................................................................................................................................13
REFERENCES..............................................................................................................................14

1.Introduction
Mobile manufacturing industry is increasing now a days at very fast pace in many
countries. There are many manufacturers of mobile phones that are competing with each other
and providing various services to customer's (Hamel and Prahalad, 2017). Grey is also hiring
people that provide more competition in the market. Core operations that were performed under
mobile company such as research and development, production, marketing, promotion etc. Sales
Revenue of the company will be increasing that help in providing various aspect in business.
This report will emphasized on market analysis of Grey and gaining competitive advantage for
the purpose of sustaining in the market.
2. Market Analysis
Analysis is being done using different approaches as follows:
2.1 Competitors
These are the rivalry that is selling same product and services for the aim of satisfying
needs and wants of consumers. In taking into consideration there were 8 companies that are
competing with Grey simulation company that are focusing on same group of customers in the
marketplace. Competitors of grey are green, synergy, blue, orange, navy, ochre and pink. As
transportation tariff of orange is more as compared to other competitors as it is investing more in
transportation sector.
2.2 Geography and Technology
It is targeting three geographical location in terms of mobile manufacturing firm
including USA, Asia and Europe.
At global level there is fluctuation in demand that help in developing better
understanding of technology as it is help in determining different aspect in the future. It help in
providing knowledge regarding the market as it is important in improving technological changes
in the market. Grey is not investing much money on technology as compared to other
competitors for gaining competitive advantage . It is important in investing money in technology
that help in future growth and opportunities (Freedman, 2015). In USA most of expenses will be
done by synergy that help in fulfilling objective of the company. As it is important while taking
into consideration that help in investing into technology that create various perspective for the
fortune.
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2.3 Buyer's preference market Segmentation
An analysis is being done in different countries such as providing various perspective for
the future. Through demand buyer's performance is taken into account that is providing different
aspect in life. Market will be segmented based taste and preference of consumer. It enhance in
ganging knowledge from various market trends . It is important considering Consumer are the
king of market and their needs and demand in the company. As there are various perspective for
the future course that will have impact in business operations. It is found out that changes will be
carried out in business as there are various factors that affect preference and taste of consumer.
In Europe companies are investing in technology that help in advancement for the future.
2.4 Sub-strategic Groups in Mobile Phone Industry
These groups help in providing place to company in the market by making improvement
in research and development and investing more in promotion and various approaches that will
be used for the future purpose in the company. At global level investment on research and
development is being done by two competitors that include synergy and blue that help in
facilitating various aspect in the future. On the other hand, in USA synergy and blue is investing
in R& D that provide effective use of resources in the future. In case of Asia also invested in
synergy and orange. There is reason of spending money in research and development that will be
useful (Hansen, 2016). It is an important perspective that help in developing research process
and providing various aspects for getting success in the market. As this game is played by most
of the people in synergy and orange. Profit will be increasing that help in providing different
segments in the country that will be providing to consumers that are coming to provide different
changes in business.
2.5 Market Shares
It helps in determining various aspect of sales by enhancing company's operation. As in
global context market share of grey is less as when doing comparison between different firms .
This shows that 7.28 %share is there of grey in the market. In USA it is having share of 8.13 %
that is less as compared to other competitors in teh marketplace. On the other hand, in Asia's
market share in grey is 6.93 % and lastly in Europe its market share is 6.90% that is less from
other competitors in the marketplace. There is fluctuation in market share rate of grey that will
be providing different perspective in achieving success for future. It is important that market
share will be more that help in providing growth and bring opportunities in business.
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2.6 Porter Five Force Analysis
This analysis help in gaining competitive advantage and attract new entrant into the
marketplace that will be helpful for business (Wehner and et. al, 2016). There are different forces
that will be included in this analysis are as follows:
2.6.1 Risk of new entrant
This include entering of new firm in the market that will become barrier for other
companies in the marketplace for the future. Mobile industry is growing at a fast pace that will
lead to have greater market share that is providing more competition in the market. As there are
different rivalry of mobile phone . There are many rivalry of mobile industry that is having their
share in market (Suk and et. al., 2016). As now a days smart phones are running in the market
so there are many companies that are entering into market by bringing new mobile phone that is
providing different perspective and gaining various perspective.As company is having many
rivalry that will help in gaining competitive advantage for the future. Rivalry is providing
different aspect that will help in gaining various perspective for competing in the market.
2.6.2 Power of Buyers
Buyer is having so many options to purchase mobile phone from the market based on
price and technology that are available for them. As Competitors are taken into consideration
that help in switching consumers from one brand to another. It is a different way that will be
helpful in gaining different charges that create different strategy in business.It become easy for
buyer to switch as there are so many competitors that provide same product at different price and
quality so buyer will shift to other company.
2.6.3 Suppliers bargaining power
Supplier bargaining power is high in the market as in case when there is no substitute
available in the market. There are many suppliers in the market so companies also shift from one
supplier to another for the purpose of gaining effective material from the market. There are
various perspective that will be useful in providing different challenge to supplier so as to
compete in the marketplace (Adner, 2017). Supplier are so many in the market that help in
provide various perspective and help in building trust among consumers. It is important in
having bargaining power of consumer under mobile industry that is beneficial for the future.
2.6.4 Threat of Substitute
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At present there is no substitute industry of Cesim so there is no threat of substitute
product in the market.
2.6.5 Competitive Rivalry
This is providing rivalry competition in the market for achieving greater market share
that will be providing various perspective for the future. As competitive rivalry are navy,
synergy, blue etc.
2.7 Power of Complement providers
There are different firms in the market that is providing value in product and services that
help in bringing out approaches that help in gaining success . It is important for mobile sector to
provide proper network coverage that help in facilitating providing better services in the future.
As Cesim is providing proper network coverage to people that are using mobile phone in teh
market. Network coverage area will be having different perspective and analysing various
sectors into the market. It is important for analysing that proper network is being provided to
people that enhance business and attract more people towards it in the future (Punt and et. al.,
2016). As different facilities is being provided regarding network coverage in the area.
2.8 Industry Life cycle Analysis
In this there are five stages that will help in analysing performance of industry as under:
 Embryonic stage:- This is the initial stage where industry is developed in the market.
 Growth Stage:- Increase in demand of industry as people are liking product of the
company
 Stakeout stage:- Declining in growth will lead to come industry as stakeout stage
 Maturity stage:- Here, market is getting saturated and there is less demand and growth
in the market for future growth
 Declining Stage:- This is the last stage where there is no growth in business due to
technological changes in the market and having competition in teh market that decline
future growth.
As mobile industry is at maturity stage and is performing much better then its three competitor
that include, navy, blue and synergy (Wieland, Hartmann and Vargo, 2017). As big companies
bring more competition in the market that affect business operations and provide various
perspective in the future. At introduction stage mobile is being introduced into the market and
provide many new features to consumers then consumer use that mobile phone and providing
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reviews that will be providing various aspect. It is important in providing different segments in
the future. There are different perspective of consumer that will help in utilising product as help
in providing different aspect. It is important in gaining various perspective that will be searching
in the market . If product is not liked by consumer that it will lead at declining stage.
Industry Size
Sales revenue and profit tell about size of industry in the market. There is continuous increase in
sales that help in determining size of industry that help in gaining success for the future. It is
important in analysing various perspective for the future. There is slow growth in the market that
will be helpful in business. It is important in gaining different aspects that will be providing
various changes in the company.
Capacity of demand
There are many companies that will be having more capacity and enhancing future course and
perspective for the future. It is important in gaining segments that is providing different segment
in the future. It is important that will be useful for the future course of action (Apps and Ono,
Angoss Software Corp, 2017). It is important in gaining different market share as by utilizing
demand of consumer and fulfilling it in given period of time. It help in various segments that
help in fulfilling demand and providing various aspect.
Limitations
 Models that are using in different industries are not proper and help in getting
involved into it for the future.
 Innovation is being done and analysing nature of competition in the market.
 Emphasizing more on industry structure and creating various aspect for the
future performance.
2.9 PESTEL Analysis
These factors affect working of business operations. It is providing different changes that
create problem in running business for the future.
Political factors
These factors affect political stability as well as creating tension in minds of marketer for
the purpose of doing business in other country. Different tactics that will become barrier for grey
company to expand its business for the future. Due to increase in tariff that provide various
perspective. It help in providing various aspect that create problem for mobile manufacturer to
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sale its product into the market. As tariff costs are high then this will decrease production of
mobile in the country. there are various needs that ill be providing different perspective and help
in providing various changes due to political instability in the country.
Economical Factors
These factors include change in exchange rates that affect import and export of mobile
phones from one country to another. As there is no exchange of currency between countries that
will reduce earning of company in the future (PESTLE Analysis, 2019). As there barrier come in
doing trade between UK and USA or with Asia and Europe that will decrease growth in the
future. Due to this sale of mobile phones get decrease therefore it ultimately affect business
operation of Grey in the future.
Social factors
In this business will be influenced through various perspective such as culture, custom,
values in business. As labour sit on strike that is beneficial in future and help in gaining various
aspect for the company. Changes in services that will be providing various segments in the
company as it is beneficial for the future course of action. These factors affect business
operations as changes in social aspect affect business operations in the future. There are different
segments that is providing to consumer for creating various aspect in gaining knowledge in the
market.
Technological factors
These factors include different changes and gaining various changes in the company for
the future. Changes in technology will affect various business operations and that lead to provide
different segment in utilizing various perspective technology change will help in providing
different aspect that will be creating different changes in the company. In providing various
aspect for the future in utilizing various changes in business. Technological segments are
important in gaining various perspective and building different perspective for the future. There
are different changes in providing various aspect that is useful for firm. it is important in
analysing various perspective for utilizing various perspective in taking into consideration as
changes in technology will affect innovative ideas as that increase operation cost in business.
Environmental Factors
There are different factors that affect operations of business as changes in climatic
condition of the country will have an impact on business for the future. Due to pollution health of
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people will affect and they are not able to work properly in premises. It is important in enhancing
various perspective for the future. There are various segments that will be providing different
changes that will occur in business and creating different changes in business that is providing
various perspective for the future. These factors may affect business operations in the market.
Legal factors
Changes in tax policy will have greater impact on manufacturer of mobile phone
company as it is helpful for the future course of action. There are different segments that will be
provided in the future for different aspect in the company. It will be helpful for companies to
bring effective use of resources as by reducing pollution in the country. Profits of the company
will be affected through different laws that will be applicable in business for the future.
3.Sources of competitive advantage
Competitive advantage are conditions which allows a company to generate a goods as
well as services of equivalent value at a lower price with more desirable fashion. These are the
conditions which allows to make more sales with superior margins compared to its market
competitors in terms of cost structure,quality of products ,intellectual
property,branding,distribution network and customer service. Greys company have various
strong points which are given below(Fisher, 2015).
Sources
Distinctive Competencies-Basically it includes a list of valuable practices as well as technical
skills which will make an organisation better than others. Grey company is one of the leading
firm that work hard to make effective use of its capacity because of this reason. Apart from this
R&D is another factor that is helpful for grey company remains ahead of its rivalries.
Resource capacity- Grey company has enough amount of human resources and because of this
reason company make productive use of its capacity(Vogelmeie and et.al., 2017).
Capability- Grey have productive as well as effective team where team members are more
skilled and have better coordination with each other which conduct a maximization of profit.
Value chain analysis
GLOBAL
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U.S.A
From value chain analysis it is analysed that product sale of Grey company in United
states of America is low as compare to china and Europe. The reason behind it that it has low
supply chain in U.S.A. The innovators stars more in Asia and Europe.
Asia
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Europe
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Critical analysis of investment in R& D
Definition and Benefits
Research and Development (R&D) are the activities which undertake in companies for the
innovation as well as introduction of a new product as well as services. it is consider as the first
stage of development process. The aim is to to take new products as well as services to the
market and also add them to the organisation is bottom line. R&D makes a company to stays at
the top of its competition(Rugman. and Verbeke, A., 2017).. Without the use of R&D a company
cannot be survive as it has to depend on others Ways for example merging or partnership. With
the help of R&D Grey can design its own products as well as it can improve its existing
products. Grey is making moderate investment in regarding to R&D projects and also it is inline
to the average investment which are made by its rivalries. Thus it can be said that the Grey
company in such a position where it can give a good competition to its competitors. however
average value doesn't give a true picture because rivals on a specific time make god investment
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