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mba-515-q5736-1.docRunning head: ANALYSIS OF THE MOBILE TELECOMMUNICATION MARKET 1
ANALYSIS OF THE MOBILE TELECOMMUNICATION MARKET 4
Analysis of the mobile telecommunication market
Introduction
The mobile telecommunications market forms a significant component of the technological industry. In the last few years the market has reported exponential growth attributable to the increase in innovation capacity. This has seen the market become the epicentre of growth and expansion in the overall technological industry. This is attributable to the fact that the drastic advancements in the market have revolutionized several aspect of the economy. Consequently, this has presented growth and expansion opportunities to various telecommunication and technological firms such as Apple Incorporation, Microsoft Corporation and Samsung Electronics (Wigginton, 2016).
This assignment is set to delve into the market outlook of the mobile telecommunication segment as a domain the technological industry.
Analysis of the mobile telecommunication market
The mobile telecommunication market has undergone numerous drastic changes over the last few decades. To begin with, mobile telecommunication subscribers have exponentially increased from about 24 million in 1994 to over 160 million in 2015. This is attributable to the advancement in technology that has seen the development of innovative mobile telecommunication devices and gadgets. Additionally, the growth can be attributed to the surge in necessity of communication need between family members and others. For instance, increasingly more parents have expressed the need and desire to constantly stay in touch with their children (Thomes, 2015).
The mobile telecommunication market has also increased in scope of competitive rivalry. There is stiff competition between companies between the various technological corporations in various fronts such as technological innovation capacity. The competition stems from the substitutional capacity of the firms’ technological products and services. Consequentially, the competition has turned out in the favour of technological consumers and customers I the access to quality and highly innovative products and services.
Notably, the mobile telecommunication market has peaked its mature life cycle. This is indicated by the size of the market characterised by the near attainment of a phone for every potential customer or consumer. This has been achieved by the various technological companies’ improvement of their products and services in aim to attract potential subscribers of the same. Some of the improvement strategies include cost cutting strategies intended to render mobile communication devices affordable and increase of innovation capacity.
The growth of the mobile telecommunication has seen over 50 companies with only the top 10 controlling over 80% of the market. However, the level and rate of entry is relatively low. This can be tribute to the comparatively large capital requirements necessitated by the development of brand and image, marketing and promotion. Nevertheless, this has marked some high level of standardization in the differentiation of products and services. This has seen the development of a wide range of mobile telecommunication devices and services to choose from. Additionally, the mobile telecommunication market is marked by high profitability that has seen total revenue from the domain surge to the tunes of over $100 billion. However, the profitability capacity is subject to innovative capacities of the technological companies.
Conclusion
The mobile telecommunication market looks attractive and competitively healthy. This has worked to the advantage of the consumers and customers.
References
Thomes, A. (3rd July 2015). Mobile Phone and Smart Phone Market - Global Industry Analysis and Forecast 2015 – 2021. Retrieved on 7th August 2016
From: https://www.linux.com/blog/mobile-phone-and-smart-phone-market-global-industry-analysis-and-forecast-2015-2021
