Mobile Phone Industry

7/29/2019 Mobile Phone Industry

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MARKET SHARE

Company Name MS09 MS10

Nokia 54.1% 36.3%

Samsung 6.4% 8.2%

GFive - 7.3%

Micromax 4.8% 4.1%

Source: IDC India 2010- Economic Times

30,000 Cr handset market


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PORTER MODEL

Industry Competition

International andnational players.

- high

Threat of new entrants

-Govt. ApprovalsVery High

Threat of substitute.

Low

Bargaining Power of

buyers- many options

- highly price sensitive

high

Bargaining power ofSuppliers

moderate


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PESTLE ANALYSIS Political As markets are deregulated,

both operators and manufacturers are free to

act independently of government

intervention.

In Countries like India and China

where Partial regulations exist, government

intervention does take place.


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Economic With incomes rising, peoplehave more disposable income, whichenables

consumers to be more selective with theirchoice of mobile phone.

Also the rates offered by service providersfavours the use of mobile phones


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Social The rise of the so-called information

society has made telecommunications

increasingly more important to consumers,

both in terms of work and leisure.

Users are more aware of mobile phone

handset choice and advancements due to

increased information availability.


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Technological There have been many

global advancements in technology such as

MMS, Bluetooth, WAP, GSM, GPRS,

cameras

etc.


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Environmental There is a concern thatthe

use of mobile phones could be damaging

to health, with tumours potentially being

caused by the waves emitted by thehandsets. There is also immense e-wastage.

Legal Difficult to patent mobile phone

designs. Technology Infringement causes a

lot of legal issues


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SWOT

STRENGTHS Very High Demand

Low cost of production

Technological advancement

WEAKNESS

Very short product life cycle Easily duplicable

Environmental & health Issues


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OPPORTUNITY Fastest growing industries

3G & 4G

VAS Third world countries

Forward integration

THREATS Internet

Desruptive Technology


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Company

Market Share

Nokia(L) 36.3%

Samgung 8.2%

GFive 7.3%

Micromax 4.1%

BCG Mobile Handsets

Source: IDC India 2010- Economic Times


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RMS

1X5X

10%MG%

Nokia

Samsung

MicromaxGFive


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Sony

Erricson

Weak

Low

Med

MediumStrong

High

MarketAttractivenessa

Business Strength

Samsun

gI-PhoneMicromax

Nokia


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NOKIA- HISTORY

1985-Nokia was founded by Fredrik Idestam as a pulp mill

1904- The Finnish Rubber Works Ltd set up a factory in

Nokia

1967-These two companies and Finnish Cable Works Ltdamalgamated in forming Nokia Corporation.

Produced Rubber boots to Toilet Paper

1990- Different branches split into several companies or

sold off The rubber works still operates in Nokia as Nokian Tyres

and the paper mill as Georgia-Pacific Finland Oy.


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NOKIA INDIA

1995 Started Operations in India

1998 - Saare Jahaan Se Acchha, first Indian ringtonein a Nokia 5110

2000 - First phone with Hindi menu (Nokia 3210) 2002 - First Camera phone (Nokia 7650)

2003 - First Made for India phone, Nokia 1100

2004 - Saral Mobile Sandesh, Hindi SMS

2004 - First Wi-fi Phone- Nokia Communicator(N9500)

2006 Nokia manufacturing plant in Chennai

Undisputed Leader for last 6 yrs


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Valuable- relationship and reputation

Rare- strong retail network

Unsubstitutable-Incremental innovation Non imitable- Huge range of products, Mass

production,sturdy

VIRU


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VALUE CHAIN ANALYSIS OF NOKIA

Infrastructure

Human

Resource

Management

Technology

Development

PRIMARY

ACTIVITIES

Has a state of art R&D facility and a fabricating unit in Chennai

Support

vendors by

financing

Lowest Raw

Material Cost in

the Industry

Values human

resources a lot

Excellent R&D

work

High Technology

based operations

Recruitement

Sepeate strategy to

enter the all three

segments

Competitive Pay

scales

New Products

Introductions

Customer

Oriented

Inbound

Logistics

Operations Outbound

Logistics

Marketing

/ Sales

Service

SU

PPORT

ACTIVITIES

Strongdistribution

network

Employee

satisfaction

Reduced

packagingcost &

promote

recycling


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STRATEGIC ALLIANCE

Partnership with HCL for distribution channel

for VAS.

Multi-faceted business alliance with

Reliance communications on Ovi Life Tools.


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INTERNATIONAL STRATEGY

Manufacturing of cell phones in India

Export of cell phones from the Chennai

manufacturing centre to the asia pacific

region


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LEADERSHIP

Manufactures mobiles as per Indian need.

More updated as per the customer needs

Huge differentiation of products as percompetitors


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CORPORATE LEVEL STRATEGY


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BUSINESS LEVEL STRATEGY

Create winning devices

Embrace consumer internet service

Deliver enterprise solution Build scale in networks

Expand professional services


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FUNCTIONAL LEVEL STRATEGY

The Nokia Way-emphasizes the speed and flexibility of decision-

making.

Flat-networked organization with a certain amount of

bureaucracy.

Equality of opportunities and employee participation.

The Nokia Values are Customer Satisfaction, Respect,

Achievement, and Renewal.


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SAMSUNG HISTORY

1969-71 Samsung sayno electrical foundingperiod

1977-79 The fast development Period

1986-89 Changing the direction to exports 2000-02 leading the digital convergence

Revolution

2002-03Initiatives to become a world class

company 2004-06 Laying the foundation to become a

world class company


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CORPORATE LEVEL STRATEGY

CONSUMERS BUSINESS

Mobile phones

Televisions MP3 &audio/video

Cameras & camcorders

Computers & peripherals

Professional displays

Printers

Home appliances

IT Business

Hospitality solution Semi conductor

LCD panel

Telecommunication

Set Top box

Fiber optics

Insurance


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BUSINESS LEVEL STRATEGIES

TargetMarket

Overall Low-CostProvider

Strategy

BroadDifferentiation

Strategy

FocusedLow-CostStrategy

FocusedDifferentiation

Strategy

Best-Cost ProviderStrategy

(Samsungs Strategy)

Lower Cost Differentiation

BroadRange of

Buyers

NarrowBuyer

Segment

or Niche


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VALUE CHAIN

Infrastructure

Human

Resource

Management

Technology

Development

PRIMARY

ACTIVITIES

Has a state of art R&D facility and a fabricating unit in Seol.

Strong vendor

relations

Lowest Raw

Material Cost in

the Industry

Values human

resources a

lot

Excellent R&D

work

High Technology

based operations

Recruitments

Very strong Brand.

Known for its

Quality. Rated in

the top 20 brands

of the world

Competitive Pay

scales

New Products

Introductions

Customer

Oriented

Inbound

Logistics

Operations Outbound

Logistics

Marketing /

Sales

Service

SUPPORT

ACTIVITIES

Fast delivery

Air

transportation

Central

computer

linked with

vendors

Self

Distribution


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VIRU

Valuable- R&D

Rare-Self Distribution , Green Technology

Unsubstitutable- Financial support

Non imitable- Technological Expertise


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INTERNATIONAL STRATEGIES OF SAMSUNG

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STP APPROACH OF SAMSUNG

SEGMENTING

Segmenting is the process of dividing the market into segment

based on customer characteristics & needs.

Segmenting consist of:

1. Geographic segmentation

2. Demographic segmentation

3. Psychographic segmentation


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TARGETING

Targeting is the process of focusing on a

particular market with a particular product .

LOCAL MARKET

TEIR 1 CITIES

TEIR 2 CITIES

NICHE MARKET


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POSITIONING

DIGITAL TECHNOLOGY LEADER

They initiated transformation from a low-

end OEM into a world-class electronics

company

Samsung came up with exciting product

portfolio.

TOP Olympic Sponsor for the 2008 Beijing

Olympics and Olympic Partner for the

2008 Olympic Torch Relay.

Manavjit Singh Sandhu was its OlympicBrand Ambassador and launched the

program 'Spread the Olympic Flame'


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POSITIONING

DIGITAL TECHNOLOGY LEADER

APPOINTS AAMIR KHAN AS ITS BRAND

AMBASSADOR FOR MOBILE PHONES

New, spunky, tagline - 'Next is What ?'. It is

being used in all of 'Samsung Mobiles'

communication material.


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STRATEGIC ALLIANCE

To design a range of phones for both GSM

and CDMA networks using the Microsoft

Mobile Explorer

Alliance with Giorgio Armani to produce highend luxury phone

Alliance with ARM(U.K.) to become world

leader in providing ICs

Manufacturing plant in India & china


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SONY ERICSSON


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SONY ERICSSON

Sony Ericsson Mobile Communications, a jointventure between Sony Corp and Ericsson(2001)

It is a 50:50 joint venture between Ericsson AB

and Sony Corporation.

The collaboration between Ericsson and Sony

started with the aim to provide the best mobile

solutions, through combining Ericssons strong

position within mobile technologies and Sonysexpertise in consumer electronics.


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SONY ERICSSON

Sony ericsson presently holds the 5th

position in mobile industry.

The new venture employed 1000

employees from Sony and 2500 from

Ericsson.

Some of their major rivals are Nokia ,

Motorola, Samsung.


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ALLIANCE STRATEGY

SONY ERICSSON

Knowledge

Add-on & apps.

Strong financial support

communication technology

interconnectivity with the

providers.

Lower cost structure for

sony

Re-enter U.S.


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BUSINESS LEVEL STRATEGY

Communication Entertainment Brand

Focus On Quality

Focus on Smart Phones

Build Value Market Share


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VALUE CHAIN

Upgradetechnology to reduce co2 emissions

Infrastructure

Human

Resource

Management

Technology

Development

PRIMARY

ACTIVITIES

5 yr. technology deal with HP.

Reverse

logistics

Outsource

manufac. To

developing

countries

Quality service

Inbound

Logistics

Operations Outbound

Logistics

Marketing /

Sales

Service

SUPPORT

ACTIVITIES

Targeting

value seeking

customers

Leaner fitter

and more

responsive

org.


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VIRU

Valuable- Brand name

Rare- Sound quality

Costly to imitate- Greenheart Initiative

Unsubstitutable- Camera


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LAUNCH OBJECTIVES

Capture 10% market share in the US Smartphone

market over a course of two years

Extend Apples brand name and build an image of

innovation, quality and value

Satisfy the needs and wants of Smartphone customers

and guarantee satisfaction through value delivery

Manage a successful, focused launch without budgetary

wastages


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CORPORATE LEVEL STRATEGY (1)

Growth Strategies

Concentration Diversification

Horizontal Growth Concentric

External Mechanisms

Strategic Alliances


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CORPORATE LEVEL STRATEGY (2)

Stability Strategies

Profit Strategies


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COMPETITIVE STRATEGY

Market Dominance Strategy Nicher

Innovation Strategies Pioneers


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BUSINESS LEVEL STRATEGY (1)

Focus-Differentiation

Strategy

A narrow market niche

with unique needs

Premium Price to target

high-end consumers ,

business market

Broad-Differentiation

Strategy Offer more products to

a broad of buyers

Deliver value to

customers by

differentiating


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BUSINESS LEVEL STRATEGY (2)

Specific Strategies

Dominate a niche Outsource production process Be an innovator


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INTERNATIONAL ENTRY STRATEGY

Licensing

Reliance, Wal-Mart, Best Buy


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VRIO


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THANK YOU

Date post:	03-Apr-2018
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Mobile Phone Industry

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