In summary, technological advances have helped to turn the mobile phone into an entertainment console. 3G mobiles provide a faster phone service to conventional handsets as well as offering additional products to the user such as internet access. PESTLE has provided an analysis of the key influences present in the UK mobile phone industry. Mobile phone radiation is a serious issue which public are concerned about. Also, Porter’s five forces had displayed that consumer behaviors, reasonable price and quality of service is the key elements to achieve success in mature mobile phone market.
This report has attempted to demonstrate how mobile phone market has evolved. It can be seen that buyer power is shown to be high and supplier moderate to low, with a low threat of new entrants into the market. Hence, marketers need to stay abreast not only of technological developments, but also of the way people respond to them. “Mobile device industry volumes in 2006 to grow more than 10% from the 780 million units we estimate for 2005, and the mobile device market to also grow in value in 2006.”(nokia.com)It has a rapid grow in mobile industry in the future. Mobile Operators and Mobile Phone Suppliers have invested big-time in 3G. On the other hand, mobile television will be a logical extension to the 3G phone’s capabilities and instant messenger applications may be fully integrated with mobile technology.
Critical Success Factors It had a rapid growth in the past few years in mobile phone industry. Technology innovations not only help mobile supplier produce different kind of high-tech phone, but also advance the market growth. In order to expand the market size and increase competitiveness, providing good services to consumer, invest in technology and marketing research is necessary.
Mobile phone radiation is a serious issue. In 2003, UK Government spent 1.4 million to research the radiation of mobile phone.
Convenience and cost are the main reasons consumers are choosing to send texts instead of making voice calls, be it fixed or mobile calls. Half claimed to send text messages when their home fixed line was tied up or connected to the Internet. “The forecast for 2003 for `pure-play’ digital cameras is about 32 million or 35 million units sold worldwide,” (160characters.org) It can be seen that mobile phone industry is one of the big industry all over the world.
The mobile phone sector is a major employer, “employing nearly 200,000 people” (O2 CSR, 2004), and the UK’s economic upturn through the 1990’s boosted consumer confidence, helping the industry grow. At the end of 2000, Nokia Ventures, Vodafone, Apax Partners and Argo Global changed its model from consumer auctioning by mobile to “mobile marketing”. Above compiles interactive consumer marketing using the mobile channel and mobile phone technology Sales of cell phones with cameras embedded could reach 50 million units and phones that have cameras as a separate attachment could see another 40 million units. Mobile telephony accounts for 2.3% of the UK’s GDP, and for ï¿½15 billion per annum in tax. (O2, Media Centre, 2004)
There are now more GSM mobile handsets in daily use than the total number of personal computers and televisions combined. Usage of mobile telephones and penetration into the market has increased most notable amongst the 55+, C2DE social grades and middle income groups since 2000. (Oftel, 2003) Equally, there has been a considerable increase in the use of mobile phones by the young.
“As we rapidly evolve towards a mobile wireless information society that will bring about convergence of mobility and the internet, GSM is continuing to play a crucial role in facilitating the smooth transition to the next generation of mobile telecommunications services,” concludes Jenkins. As mobile handsets become more advanced, networks are being forced to address the concern that children will be exposed to inappropriate material such as pornography and gambling via their telephone. The network providers are committed to the use of age verification software to try and prevent under-age users accessing this material. (BBC News 2nd July 2004)