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uk mobile phone industry

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AEF 207 Marketing Environments An External Marketing Environment: UK Mobile Phone Industry Student Name: Tsz Ling Chan Student Number: 055959797 Submission Date: 9th, December 2005 Contents 1.2 Executive Summary 3 1.3 Introduction 4 1.4 Market size 4 1.5 Situation Review & Analysis 7 1.51 PESTLE Analysis 7 Political 7 Economic 7 Social 8 Technological 9 Legal 10 Environmental 10 1.52 Porter's Five Forces Analysis 11 Rivalry between established competitors in the industry 11 Threat of new entrants 12 Bargaining power of suppliers 12 Bargaining power of buyers 13 Threat of substitute products 14 1.53 SWOT analysis 15 1.6 Conclusion 16 1.7 Critical Success Factors 16 1.8 References / Bibliography 17 1.81 RESEARCH PORTFOLIO 17 Web Sites 17 1.2 Executive Summary > Mobile marketing has become the hottest communication method of the 21st century. In this technology-enamored nation, the mobile phone has become an entertainment and communication device that reading e-mail, news headlines and weather forecasts. > There is a rapid grow in mobile phone industry. > Slight to moderate growth in the mobile infrastructure market in 2006. > The mobile phone business has been a phenomenal money spinner. In Britain, each of the four licensed operators (Vodafone, Orange, O2 and T-Mobile) made fortunes out of the first and second generations of phones and networks. > All the talk was of third generation (3G) mobile phones with ready internet access plus video links since 2000. > When the governments of Europe put the network licences up for auction, a total of $100 billion was bid by the major phone companies. It was perhaps the biggest strategic gamble of all time on new technology. > In 2002, the 3G phones were expected to have swept all others away. Yet by November2002, Nokia was still only in the testing stage and the market was being attracted to camera phone based on 2G technology. > Future mobile users had been expected to order their shopping online, while on the train back from 3G application. ...read more.


3G phones Legal > Planning law has also been a key issue for network providers when locating base station transmitters. The most ideal locations are usually in highly populated areas, and have been denied planning permission on the basis they are unattractive.(BBC News 14th January 2005) > There are a number of legal considerations surrounding the mobile phone industry, one of which is the current health concern linked to the use of handsets, and proximity to transmitter base stations. The 2000 Stewart Report, set up by Department of Health, found that exposure to radio frequency radiation at levels below existing guidelines, did not cause adverse health effects. (Jon Agar, 2003) > Another health and safety law was implemented in 2004, preventing the use of mobiles whilst driving, increasing sales of hands free kits. Environmental > Lancet medical journal (1988) reported that mobile phone radiation affecting human's health. Mobile phone radiation causes blood vessels to constrict and increases blood pressure. > Over 20,000 mobile phone masts are active in the U.K. this means that almost everyone is being constantly exposed to low level radiation. > According to the BBC News 27th July 2005, it shows that one of the key environmental considerations facing the mobile phone industry is the positioning of their transmitter base stations. These have not only been questioned for their safety in populated areas, but are also unsightly. > Environmental consideration needs to be given when dealing with waste resulting from disused handsets. Many network providers now have recycling bins in their retail outlets, where handsets can be disposed off in an environmentally friendly fashion. The sustainability of resources used in manufacturing is also an issue. "The growing production and use of mobile phones, has resulted in an overall increase of resource consumption." (Vodafone.com) > Mobile phones are becoming an increasingly popular way to listen to music. 1.52 Porter's Five Forces Analysis Figure 1 Figure 1 show the five forces framework decides by Porter (1985).Porter suggests that firms need to analyse five factors within an industry in order to understand its nature. ...read more.


Threats > Produce a low price mobile phone to attract student and old people. > The possibility of price wars from difference supplier in Christmas time. > Growing competition from rivals. > A reason leading poor demand in the economy. > Development of foreign competitors. Nokia operate in over 30 countries all over the world. 1.6 Conclusion 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. 1.7 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. 1. ...read more.

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