Assignment

Mobile phones

From: Dovile Malinauskaite

Course: Business Administration

Subject: Marketing Principles & Planning

To: Chi Elemson

04/12/2006


References

Internet sites:

  1. (WWW) Available from:  [Accessed: 1st Dec 2006]
  2. (WWW) Available from:  [Accessed: 29th Nov 2006]
  3. (WWW) Available from:  [Accessed: 1st Dec 2006]
  4. (WWW) Available from:  [Accessed: 29th Nov 2006]
  5. (WWW) Available from:  [Accessed: 25th Nov 2006]
  6. (WWW) Available from:  [Accessed: 29th Nov 2006]
  7. (WWW) Available from:   [Accessed: 1st Dec 2006]
  8. (WWW) Available from:  [Accessed: 29th Nov 2006]


Introduction to the project

The main parts of this assignment are:

  • Secondary data collection and analysis;
  • Primary data collection;
  • Analysis of questionnaire;
  • Findings;
  • Positioning maps.

Objectives:

  1. to identify various positions occupied by the major network brands and in the mobile phones industry;
  2. to carry out PEST Analysis on the mobile phones industry;
  3. to identify the major attributes used by consumers in their purchase a product.

Networks of mobile phones in my research:

  • “3”
  • O2
  • Orange
  • T-Mobile
  • Virgin
  • Vodafone

Analysis of secondary data

In this part I want to carry out PEST Analysis on the mobile phones industry. PEST means Political, Economical, Social and Technology environment.

Political

In May 2000 the UK government awarded five licences to run third generation wireless services. The largest of these licenses was set aside for a new entrant in order to increase competition in the market and included a guaranteed roaming agreement. Hutchison 3G (now 3) acquired this licence and at the lowest cost. With the largest amount of spectrum 3 have a significant advantage in being able to deliver the most compelling range of multimedia services and bring value for money into the marketplace. [8]

Economical

It’s not a secret that it is remaining less time till Olympics in London in 2012, so economical situation is getting better. The number of people will grow very much, because lots of visitors will come to London. Of course they will need mobile services so the number of Pay as you go users will increase. It just depends on the networks which one will attract more users.

Vodafone chiefs mull revival measures

Vodafone chiefs are mulling a £1bn spending cut, and write downs of up to £20bn, to bolster failing investor confidence in the telecoms giant, reports said.

The firm, in a results statement on Tuesday, may reveal it is scaling back investment in its mobile phone networks by £1bn, newspapers said.

And Vodafone directors have spent recent days considering by how much to slice the value of takeovers such as Airtouch, bought for $62bn, and Mannesmann, taken over for £101bn, to reflect the continuing slide in the fortunes of telecoms firms, The Business newspaper said.

The value of stakes in China Mobile and fixed-line operations in France and Germany will also be written down, The Observer said. [1]

(BBC News, 26 May, 2002)

“If you are a company which has just posted a loss of $40.7 billion in one year, how do you stop your shares from going into a freefall? Bribe your shareholders. What Vodafone did isn’t quite that bad, but it isn’t that far off. At the same time that Vodafone announced that mammoth loss, they announced that they would return an additional $5.6 billion to shareholders. That’s on top of the $10.7 billion that the company had already pledged to return to shareholders after they sold Vodafone Japan to Softbank in April.

The losses for the fiscal year were due to a $43.7 billion write-down of assets which were acquired in 1999 and 2000 when the company was rapidly acquiring companies. Despite that, revenues were up 10 percent to $54.6 billion, and the return to investors was likely an attempt to reinforce the financial health of the company.

The financial news will not ease the pressure the company is facing to sell off their minority stake in Verizon Wireless to focus on European and Asian markets.” [4]

(May 31, 2006. By )

Talking about Orange which is not very popular, today it keeps 88.6 million mobile customers across 23 countries in touch. They’re not just talking – Orange makes it easier for them to communicate in ways that are richer and more engaging.

Join now!

From their work life to their home life, Orange customers have the flexibility to choose how and when they connect to people, information and entertainment. We spend a little time listening to them. That's the key to our future success. [6]

Here is the data example of mobile phone market share for Q2 2005: [5]

Social

“In the UK, the National Radiological Protection Board published a report by its Independent Expert Group on Mobile Phones in January 2005 report, which looked closely at the published research, couldn't find any decisive evidence to support the idea that mobile phones are hazardous ...

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