Business Perspective: Merits and Demerits of Mobile Phone Industry

This report provides a comprehensive analysis of the mobile phone industry from a business perspective. It explores the significant impact of mobile technology on various aspects of business operations, including marketing communication, competitive advantage, and financial institutions. The report highlights the merits of mobile technology, such as improved marketing effectiveness and enhanced customer service, while also addressing the demerits, such as potential customer irritation from excessive promotional campaigns. It examines the role of mobile technology in enhancing organizational performance and productivity, and proposes strategic steps to maximize the positive effects and minimize the negative impacts. The report draws on a literature review to support its arguments and concludes with a summary of findings and recommendations for businesses seeking to leverage mobile technology effectively.

Running head- Mobile Phone Industry in Business Perspective
Merits and Demerits of Mobile Phone in Business Perspectives

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Mobile Phone Industry in Business Perspective
Table of Contents
Introduction....................................................................................................................................................2
Aim of the paper........................................................................................................................................3
Objectives..................................................................................................................................................3
Justification................................................................................................................................................4
Literature Review...........................................................................................................................................4
Merits of Mobile Technology....................................................................................................................4
Demerits of Mobile Technology On Business...........................................................................................8
Summary..................................................................................................................................................12
Methodology................................................................................................................................................12
Methods....................................................................................................................................................13
Questionnaire...........................................................................................................................................13
Data Collection........................................................................................................................................14
Data Analysis...........................................................................................................................................14
Conclusion...................................................................................................................................................15
Reference List..............................................................................................................................................16
Appendix- Questionnaire to be Used...........................................................................................................19

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Mobile Phone Industry in Business Perspective
Introduction
Technology is one of the fasted growing elements which have effected the business world
significantly. Technology has changed the business scenario and the way of doing business has
been changed considerably due to the emergence of advanced technology. Technology plays a
very significant role in business nowadays and due to its importance in the business, it has
gained a central place in the business (Christy and Kuncheva, 2018). It has become an essential
component without which it is very tough for a firm to sustain in the market. Thus, it can be said
that technology has become an important factor in order to achieve competitiveness in the
market. It helps the companies to fight against competitive firms in the market. Mobile
technology is also an example of technological advancement. Mobile technology has also
affected the business world considerably. There are several advantages of mobile technology to
the business. Mobile technology helps the organization to achieve competitiveness in the market.
The significant effect of mobile technology can be seen on business communication. It improves
the marketing communication of the organization. Mobile technology has also a significant
effect on sales of the product and services of the organization. It helps in gaining proper
coordination and cooperation among the team members (Ajumobi and Kyobe, 2017). The
organization can also promote coordination among different departments of the organization
using mobile phone which ultimately improves the performance of the organization along with
productivity. Thus, mobile technology has also become an essential component of the business.
The effect of mobile technology is extensively found on financial institutions. Mobile technology
plays a very significant role in banking and payments. Almost every financial institution has a

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Mobile Phone Industry in Business Perspective
smartphone app which facilitates the banking sector to avoid or eliminate congestion at banks.
Mobile technology also improves the business process and makes it smooth.
Mobile technology does not only positively affect the business, but there are some negative
effect as well of mobile technology on the business. One of the significant demerits of mobile
technology on business is that companies deliver promotional campaign frequently. The
companies deliver a lot of content to the customer which makes them irritate and hence they can
stop watching the promotional campaign of the organization (Zheng and Lee, 2016). It will affect
the business negatively as the customer will not watch the promotional campaign and hence they
will not be aware of the new offers, product, features, and benefits of the organization. Thus, it is
important to analyze the positive as well as negative effects of mobile technology on the business
so that effective and appropriate actions can be taken to maximize the positive effect and
minimize the negative effect.
Aim of the paper
The aim of the paper is to analyze the positive as well as the negative effect of the mobile phone
industry on company. Thus, this paper will examine the role of the mobile phone industry in the
business. It will be studied how the mobile phone industry affects the business. So, with the help
of this paper, the researcher will answer that to what extent mobile technology should be used by
the company in order to enhance the performance and productivity of the company.
Objectives
The following are the objectives of this paper.
 To identify the positive effect of mobile phone industry in the business perspective
 To identify the negative effect of mobile phone industry in the business perspective

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Mobile Phone Industry in Business Perspective
 To analyze the role of mobile technology in the performance and productivity of the
organization
 To propose strategic steps to improve the effectiveness of mobile technology in business
Justification
With the help of this research study, the organization will be able to understand the merits and
demerits of the mobile phone industry to their business. So, with the help of identified data, the
organization can design their business process to improve the merits of mobile phone industry on
their business and eliminate and reduce the demerits of the mobile phone industry on their
business. This paper will also facilitate them with the strategic actions or activities to improve
the effectiveness of the mobile phone in the business. All the arguments made in the paper will
be supported by scholarly articles in order to maintain the reliability of the arguments.
Literature Review
Merits of Mobile Technology
According to McDonald et al., (2015) technology has progressed very rapidly in the recent years.
There are a number of milestones attained by technology advancements in the past few decades.
Improvement and advancement in technology has significantly affected the corporate world.
Technology is the main source of innovation within the business. Several tools and devices have
been made or developed which have significant effect on the business. Mobile phone is also one
of them which significantly affect the business world. Mobile phones have gained a very
important place in the corporate world. With the help of mobile phones, the marketing
communication of the organization has been significantly improved. Therefore, it can be said
that everyday technology is improving very speedily. Marketing communication has been

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Mobile Phone Industry in Business Perspective
effective nowadays only with the help of mobile phone. Nowadays, almost every individual uses
mobile phone and hence an organization can effectively approach mass population with the help
of mobile phone. The organizations have started communicating with their potential customers
through messages, email, phone calls, etc. The more the customers are provided with customized
services and personal relations the more loyal they are. Thus, it can be said that mobile phone
has improved the marketing communication of the organization and hence the organization has
become effective and efficient in communication with the target audience.
According to Schmidt and Cohen (2015) the performance of the companies has considerably
improved with the help of mobile phone. Mobile phone has facilitated two-way communication
between the companies and target audience. Hence, with the help of mobile phone, companies
can make their target audience aware of the offering as well as they can also seek their feedback
in order to further improve the business process, customer service, features of the product and
services, benefits to the target audience, etc. Schmidt and Cohen (2015) argues that the mobile
phone has not only allowed the firms to make the target audience aware of the product and
services but also seek their valuable and constructive feedback which as a result have helped in
improving the performance of the company at a greater level.
Ghezzi et al., (2015) in their work have emphasized that mobile technology has become an
important source of competitive advantage to the business. Mobile technology significant helps
the organization to achieve competitive advantages by improving communication between the
business and the potential customer. Communication between the potential customer and the
business is very important for the success of the business. If the organization does not
communicate effectively with the potential customer, the potential customer cannot be aware of
the offering of the organization hence the performance of the organization will reduce

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Mobile Phone Industry in Business Perspective
considerably. Therefore, it has been essential for the business to communicate with the target
audience. Communication does not only lead to making the potential customer aware of the
product and services but also convince them, motivate as well as encouraged them to purchase
the product or services. Therefore, it can be said that, mobile technology has helped the
organizations all over the world in establishing effective communication between the business
and its target audience. According to Mushi et al (2017) the importance of mobile technology to
the business can be analyzed by analyzing the effect of social media on the business. Social
media nowadays is one of the necessary things in the business world. One of the significant
advantages of social media to the business is its coverage. There are several platforms on social
media such as Facebook, Instagram, Twitter, Snap chat, Whatsapp, etc. and every individual uses
these channels in their daily life. So, it has been easy for the organization to reach large number
of potential customers with the help of social media. Thus, it can be said that mobile technology
has significant positive effect on the business.
It is an evident fact that the world class population now uses social media through their mobile
phones. Martínez-Pérez te al (2015) in their work have argued that nowadays, organizations can
effectively and efficiently approach the target audience if it has presence over the social media.
Thus, it can be said that the effectiveness of social media is ensured using mobile phone
technology. So, with the help of mobile phone technology only the organization can use social
media platform to communicate with the target audience.
According to Baptista and Oliveira, 2015 there is a significant effect of mobile phone on the
financial institutions. In banking sector, mobile technology is of great use. Mobile technology
has been a great source of making payment, transferring amount, etc. Mobile apps have been
developed to facilitate the customer easy transactions. So, using mobile technology financial

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Mobile Phone Industry in Business Perspective
institutions have improved their business process significantly and now it has been very easy for
the potential customer of the financial institutions to interact with the banks and make the
necessary transaction. Using mobile technology, the customer can also keep the record of their
financial transaction over a period of time. They can also track the status of their transaction
immediately using mobile phone technology. The financial institutions have significantly
improved their customer services with the help mobile technology. As the customer services of
the banking sector have been improved the performance, as well as productivity of the banking
sector, has also been improved. So, it can be said that mobile technology has significant positive
effect on the business in the banking sector.
According to Goswami and Singh (2016) the mobile technology has improved the efficiency as
well as effectiveness of business organizations significantly. Earlier when the mobile technology
was not emerged the organization used to communicate with the potential customer through
electronic media, print media, news media, publishing media, etc. Flick (2015) in their work
have emphasized that communicating with the potential customers with the help of these
channels is a time taking process. It involves the selection of appropriate media channel,
designing the message, etc. before delivering the message to the target audience. All these work
take a lot of time and hence the efficiency of the organization is in question. However, using
mobile phone technology, the organization can deliver the message with no time or very less
time. Therefore, it can be said that using mobile phone technology, the organization can improve
its efficiency. It is also important for the organization to achieve competitive advantage that the
organization is efficient. Efficiency also improves the performance and productivity of the
organization. Using mobile technology, the organization delivers the right message to the right
target audience. The organization also tracks the delivery of the message to the target audience.

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Mobile Phone Industry in Business Perspective
The organization can also evaluate that whether the message has been delivered to the target
audience or not.
Laudon and Traver, 2016 have argued that mobile technology also improves the effectiveness of
the organization along with efficiency. Efficiency along with effectiveness is required. If the
organization is efficient but not effective, the performance of the organization will not improve.
On the other hand, if the organization is effective but not efficient, again the performance of the
organization will not improve. Thus, it is very important for the organization to ensure both
efficiency as well as effectiveness. Mobile technology helps the organization to ensure efficiency
along with effectiveness. The effect of delivery of message to the target audience can also be
measured. Thus, it can be said that mobile technology has significant positive effect on the
business. It helps in improving the customer services as well as in working remotely. Beside this
it increases mobility to remain in contact with the office, customers and suppliers
Mobile phones have become one of the vital pieces of business equipment for many
organizations all across the world as well as the staff. Though this technology offers significant
advantages, however, use of mobile phones in the workplace is not without challenges.
Demerits of Mobile Technology On Business
According to Fujimoto et al. (2016) there are several advantages of mobile technology to
businesses but mobile technology also affects businesses negatively. There is a very tough
competition among businesses and every business is fighting against its competitive business to
survive in the market. In order to gain competitive advantages in the market to operate
successfully in the market, the businesses are frequently communicating with the target audience.
The organizations are delivering great deal of content to the target audience on frequent basis.
So, due to huge content delivered to the target audience, the target audience gets irritated. And as

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Mobile Phone Industry in Business Perspective
the promotional campaign starts irritating the potential customer they stops watching the
promotional campaign. As a result, the target audience cannot be aware of the offering of the
organization. Thus, they will not approach the organization to purchase the product or services of
the organization and hence the performance of the organization will reduce significantly. So, this
is one of the major negative effects of the mobile technology on the businesses.
Fujimoto et al., 2016 have mentioned that technological advancement has supported the business
to grow and develop but it has also created threat of security for the business. Mobile technology
has also created an issue of security risk for the business. The risk of cybercrime has increased
which is a serious concern for the business. There are malicious people who steal information
related to business as well as consumer. It may cost millions of dollars to the business. It has also
been identified that some of the organizational employees misuse the personal information of the
consumer for their own monetary benefits with the help of mobile hardware. The risk of
cybercrime is severe for online businesses. The organizations which are operating online have
lost millions of dollars to the hackers (Martínez-Pérez et al, 2015). Therefore, with the
advancement of technology, it has also been necessary for the organization to ensure security of
the information system to protect the information of the consumer as well as the business.
Mobile technology has also created the risk of distractions in the business. Mobile phone
technology has gained a very important place in the life of every individual. It is the main source
of using social media. There are several social media channels such as Facebook, Twitter, Snap
chat, Instagram, etc. Almost every individual has account on these social media channels. During
the working hour, use of social media channels creates distraction from the work. Mobile phone
technology is also used for entertainment purpose and using it at the workplace has negative
effect on the business because the actual working hours of the employees reduce significantly

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Mobile Phone Industry in Business Perspective
and hence the performance of the employees also reduces (Drago, 2015). Thus, the mobile
technology has created distractions in the business which affects the performance of the
company along with productivity considerably.
According to Navimipour and Soltani, 2016 it is very costly to provide mobile phones to the
employees in order to make the business process smoother. Mobile phone technology
significantly helps the organization to enhance efficiency of the organization but it increases the
company’s cost of the organization. In order to survive and sustain in the market, it is necessary
for the organization to reduce the company’s cost of the organization. As the company’s cost of
the organization reduces, the margin of profit increases and vice-versa. Thus, it is not desirable
for the organization to enhance the cost of the overall organization. This is also one of the
negative effects of mobile technology on the business. It has been argued by the scholars Ghezzi
et al (2015), that the use of mobile phones has always led to workflow disruption. While
making communication always-on in the form of personal as well as work-related calls, it may
disturb the employee workflow and as a result there will be a decrease in their productivity.
Besides this, Martínez-Pérez et al (2015) argues that excess use of mobile phones in the
organization results in compromised work-life balance. It has also been emphasized by the
scholars Ghezzi et al (2015) 24 hours availability over the mobile phone to discuss or
communicate work related matter can interrupt in the employees' personal life as they receive
calls beyond the scheduled working hours.
It is also expensive for the managerial division to offer mobile phones to the employees for
making day to day communication. However, they can enable features on the handsets as well as
on the SIM cards that would restrict the use of phones only for business purpose. In addition to
this, they can also choose an appropriate tariff for the business purpose. In addition to this, there

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Mobile Phone Industry in Business Perspective
are a number of legal issues that the companies may get into which in turn might cost the
company huge sum of money to avoid any such consequences which might ruin its reputation
and goodwill.
Mobile technology has also negative effect on the employee engagement within the workforce.
Mobile technology has eliminated the use of several employees with or within the organization.
It has also disconnected some of the employees within the organization because social media is
being used extensively even for internal communication. Thus, person to person communication
has been reduced (Ooi et al., 2016). It has also been identified that some of the employees due to
mobile technology do not even take part in the informal communication. So, the employee
engagement has been reduced significantly. Due to this, there is a lack of proper coordination
and cooperation among the employees of the organization. It affects the performance of the
employees and hence the performance of overall organization also reduces. It also affects the
productivity of the organization.
The mobile phone has also effect on the health of the people. The health of the people is being
negatively affected by the mobile technology. The effect of mobile phone has been observed on
the mental health of young adult (Goswami and Singh, 2016). Mental health problem among the
young adults is increasing day by day all over the globe due to frequent use of mobile phones. A
study conducted on the effect of mobile phones on the mental health of the young adults has
found that there is a severe effect of mobile phones on the mental health of the young adults