Industry Analysis Mobile Cell PhonesLogiConsultants Wyatt A. Chartrand Mengyao Li Yingli Sun Justin Wong

SUNY Binghamton UniversityGlobal Strategic Management (MGMT 411-05)Professor Londo12/10/2015

Executive Summary and Agenda Objective: Throughout this presentation, we will determine the mobile cell phone

industry’s strategic path for the short-term, mid-term, and long-term futurethrough the use of strategic analyses and relevant information, including:

-Background and History-Industry Analysis-External Analysis-Alternatives-Recommendations-Implementations-Concluding Analysis-Question and Answer Session-Supporting Materials

The IssuesHistory and BackgroundCompanies in this industry make cell phones and related equipment. Apple, Inc., Samsung, and Motorola are three of the major players in this industry, in addition to other competitors such as BlackBerry Limited and Nokia. The history of mobile cellular technology is as follows:

Issues

- Technical problem- Battery Life- Fragmentation

- Sales growth rate decrease - Product line

Decline in growth and sales.

Battery problems

“Dumb phone” product lines

Industry Analysis

External Analysis

More competitors are entering the market, as the barrier to entry is low.

Protecting technologies is difficult.

The frequency of mobile phone upgrading is decreasing (supply > demand).

ThreatsOpportunities

• Increasing heavy users of mobile phones.

• New technologies are appearing and becoming competitive advantages for mobile manufacturers.

Threat of New Entrants Medium: big players versus new competitors.

Threat from Existing Competitorsg

High: product differentiation is hard.

Threat of Substitute Products

Threat of Supplier Power Medium: fixed partnerships.

Threat of Buyer Power Medium: loyalty versus wide range of products.

Porter’s Five Forces

Alternatives

Slowing Sale

s

• Enter new, markets in developing countries.

• Focus on saturating current markets.

Battery

Problems

• Develop better batteries in-house.

• Partnerships and/or acquisitions of companies developing external battery products, such as power banks.

“Dumb Phones”

• Divest away from this product line.

• Maintain product line.

Recommendations

Recommendations• Because competition is so fierce in current markets, and because

they are very saturated, any firm in this industry should attempt to tap into markets with little Internet access by developing alongside companies such as Facebook that are introducing Wi-Fi infrastructure into these areas.

Enter into “blue ocean” markets, particularly developing countries.

• Because in-house development of internal batteries could be very expensive, we recommend that any firm within the industry simply acquire or partner with external battery companies, which would provide them with another stream of revenue in the form of peripheral power banks.

Partnerships and acquisitions with external battery

companies.

• Because “dumb phones” are lower margin than smartphones, are becoming increasingly niche, and will likely face obsolescence soon, we recommend that any company within this industry start divesting away from these types of phones.

Divest away from “dumb phones”

To Sum

Sales, Battery Life, and Product

Line

New, Untapped Markets

Divestiture

Strategic Partnerships for Power

Banks

Recommendations

Thank You!

Questions?

Supplementary Slide 1

Recommendations

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Recommendations

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