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Mobile Phone Industry In A Nut Shell

8983 words - 36 pages

Business Strategy Research Report: Industry Of Choice: Mobile Communication No business, be it a sole trading business or corporate company, operates within a vacuum. Any organisation, despite its size, is surrounded by laws and liabilities, customers and competitors, pressure groups and government bodies. These are part and parcel of the marketing environment in which the organisation must operate and since business strategy and marketing are at the junction between the organisation and the outside world, dealing with this ever changing environment is at the fore front of any organisation's success. This means that the strategic position of any firm should be viewed as existing within a very rapidly changing and complex environment. These external conditions must be constantly assessed and appropriately responded to.The above stands true in any modern day industry and a perfect example in demonstrating these ideas is the industry of mobile telecommunication. Managers within this industry are continually faced with day to day decisions that will determine the overall strategy of the company. The following review sets to evaluate the environmental conditions and strategic consequences of the mobile telecommunication market in the UK.The birth of the mobile telecommunications market took place in 1982 when the UK government set aside a band of radio frequencies for cellular communications and awarded a total of five licenses to the network providers. These are presently recognised as, BT Cellnet, Vodafone, Orange, and One2One. Within this industry, in effect two markets exist. One of network provision, the other of handset manufacturers, and for the purpose of this review, both will be evaluated. The reason for this lies in the fact that the environmental effects for each go hand in hand and are one and the same thing. The major players in the production of cellular handsets include, Nokia, Motorola, Ericsson, Sony, Panasonic, Siemens as well as a few others. The change exhibited by this market since then has been phenomenal. This has occurred not only due to the rapid technological advancement but also due to a change in the positioning of a mobile phone in the consumer's mind. Mobile phones have gone from being very expensive and cumbersome pieces of equipment, belonging to your stockbroker, to becoming a small, inexpensive and attractive way to fulfil every day communication. Telecommunication networks are currently undergoing profound changes, they converting slowly from circuit switched, to packet switched connectivity and from single purpose networks, facilitating only voice transmission to multi service networks supporting various non voice interactions and other applications. This has come to be known as the 3G advancement in the business and is set to take the world by storm as it becomes readily available. Already we see the availability of a GPRS tariff on the high street and this, although in its infant stages is working its way towards...

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