Executive Summary
India is the second largest and the fastest growing telecom market in the world in terms of number of wireless connections, according to the Telecom Regulatory Authority of India (the "TRAI"). The growth in wireless connections has facilitated the growth of Indian mobile handset industry. The Indian mobile handset market posted revenues of Rs 35,946 crore in FY 13.
The Mobile handset market was dominated by MNC’s like Nokia, Sony, Motorola and Samsung till 2008 when these MNC’s controlled more than 93% of the overall handset market. The high growth in this industry coupled with high profits prompted several players to enter into the market. Micromax was one such Indian player which entered into handset business in 2008.
Micromax which entered into Handset business has grown rapidly and now controls 13% of overall handset market and 19% of overall Smartphone market in India and is now the second largest player after Samsung.
The report analyses various internal and external factors which has helped in the success of Micromax. Some of the major factors indentified in this report for this success are:
Rise of Android
Innovation by Micromax
Asset light business model.
Agility and rapid execution.
Branding and marketing
Optimum balance of durability, features and price
Extensive nationwide distribution network
Methodology
The research group studied in detail the mobile handset segment in India from the perspective of handset players in general and Micromax in Particular. The report is written by the group based on analysis of extensive secondary data collected through online and print media and the insight provided by Professor Saroj Kumar Pani.
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... with $1 billion (about Rs 6,000 Crore) in revenue and to grow it by up to 50% in the next financial year, half of which will come from Smartphone sales. Micromax is also talking to Microsoft to bring out a version of the Windows Smartphone.
8. SWOT Analysis
Strengths
1. Innovative products
2. Asset Low production model
3. Effective promotion campaigns
4. Professional team
5. Market Share
6. Strong distribution channel Opportunities
1. Huge consumption Market
2. Government support for local players
3. Increase penetration in urban market
4. international markets
Weakness
1. Brand image in urban areas
2. Low-quality brand Perception
3. Reliance on imports for critical components
Threat
1. Competition from local and international players
2. Easy Replication of business model by competitors
3. Exchange fluctuations
In 1990s, ground-based wireless phone service grew rapidly around the world. A key factor in the growth of wireless phones was the adoption of a single standard, known as GSM, in Europe and parts of Asia. There were 480 million cellular subscribers worldwide by January 2000 and it reached more than billions before 2005. The economy of scale that introduced will provide the extent of competitive pressure in the business environment. It helps to stimulate Iridium to consider price-performance tradeoff that offered by the substitutes and the need of product differentiation alternatives in advance.
What 's more, the new competitors always can drive innovation in the mobile phone industry. Because if the new competitors want to success in the industry, it has to have something different with other brands to attract the consumers, and this different thing symbolizes innovation in the mobile phone industry. Xiaomi, as a successful new entrant in mobile phone market in 2011, is a good example. According to IDC, in October 2014, Xiaomi was the third largest smartphone maker in the world, following Samsung and Apple Inc. and followed by Lenovo and LG. The smartphone that Xiaomi release is much cheaper than other smartphones, which contain high configuration as Xiaomi did. What Xiaomi has done, is to substantially eliminate the significant 20 percent to 25 percent cut retailers or distributors typically get, and pair that with the vision of earning profits from accessories and web applications within its eco-system (MIUI) instead. Because of the new consciousness of forging greater margins from the phones itself, they carve out a substantial market in a short time and become an effective competitor for the existing
Compared with the rate of many decades before, the rate of mobile usage is zooming these days. The developments of general economy and technology revolute peoples’ life styles and bring mobile business into a new page. Nowadays, business trends could still make a huge difference in those mobile companies.
Evidence from the strategic group map in figure 1 above indicates that the competition is stiff. A number of small companies in terms of market value are outperforming those with larger market values. For instance, Vodafone has a market value of $ 88 billion and an annual profit of $ 7.74 billion (China Daily, 2015). In contrast, AT&T has twice the value of Vodafone at a market value of $ 173 billion and an annual profit of $ 6.2 billion (China Daily, 2015). A similar incident is evident between Deutsche Telekom with a market value of $ 85 billion and
The company expanded in the 1950aê¡?s and 1960aê¡?s and became semiconductor producers for other manufacturers. Motorola also became a global company in the 1960aê¡?s. In the 1970aê¡?s Motorola introduced the companyaê¡?s first microprocessor and a prototype for the worldaê¡?s first commercial portable phone. In the 1980aê¡?s and 1990aê¡?s Motorola provided the worldaê¡?s first computerized engine control, invented the Six Sigma quality improvement process, launched the MicroTac which was then the smallest and lightest cellular phone on the market. In the 21st century Motorola has provided the worldaê¡?s first GPRS cellular system, the worldaê¡?s first wireless cables modem gateway, and the MOTORAZR V3 cellular phone.
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
The purpose of this research paper is to analyze the cell phone and computer market and how microeconomics can help to ensure a company’s success in today’s day and age. This paper will use microeconomic models and how they pertain to real-world situations and their impact to an organization, decisions of individuals and their relations to microeconomics and effective business decisions.
According to data from IDC web site, specializes in providing consulting services to investors in the field of information technology, there are 5 major phone providers in the world is
In 1990, Nokia Mobile Phones (NMP) was the smallest of the five business divisions of Nokia, with annual sales of $500 million and 3,051 employees. Jorma Olilla, the new president of NMP, in the same year led the division to become the world's second largest manufacturer of mobile telephones after Motorola in just a year and half later. Motorola and NEC, the close third competitor, were the dominant players with a combined 33 percent global market share, compared with NMP's share of 13 percent. During this period, the main customers of mobile phones were business users who could afford the high prices. The everyday consumers were not overly attracted by these high prices and limited functional phones. Despite these limitations, the cellular market was growing rapidly, which brought more Asian producers into the competition. To make the matter worse, there was much proprietary technology and equipment required for analog standards around the globe. The emergence of digital technology provided a hope for a uniform communication standard. As a result, NMP had to make a difficult decision regarding which technology to commit significant resources to.
[1] “A $400 Phone for the masses?-India’s Micromax, known for low price handsets, pushes into smartphones arena” ProQuest document ID: 929135140 [2012]
The topic chosen for the study is “Market potential for Vodafone 3G services inBijapur”. This study will help Vodafone to understand the different customers using internet services of Vodafone.
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
The global demand for cell phones has increased significantly over the years-from 284 million in 1999 to 410 million units in 2000 to 510 million units in 2001.
Cell phones are among the most innovative gadgets of the 20th century. Traditionally, people relied on cumbersome methods to transmit information and data over long distance, which usually made the communication process ineffective and slow. The ability to communicate deferred from one society to another and some societies had advantage over others due to their superior methods of communication. It was problematic to send urgent messages due to the lack of reliable and fast techniques of communication. The cell phone invention solved most of these issues. It introduced a platform through which parties could communicate instantaneously regardless of their location or distance. In addition, the cell phone technology is globally accepted hence it is a uniform medium of communication, making it both fast and efficient in any given community. Moreover, cell phones opened up room for more technological in...
When phones became available to the public they were not considered to be mobile in today’s sense of the word. They were available to have installed in an automobile, they were big and bulky, and they needed and consumed a lot of power to use. The phone networks would only support a few simultaneous conversations. Cell phones since then have made vast improvements in their efficiency, abilities, and size. The first handheld mobile phone wasn’t produce until 1973. The origin...