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Free Example of Wireless Phone Essay

How many major wireless phone handset manufacturers are there? There are five major handset manufacturers for wireless mobiles namely LG, Sony Ericsson, Motorola, Samsung and Nokia.

What is the market structure? The market structure in this industry is monopolistic competition.

What pricing strategies do wireless phone handset manufacturers use?  The space for mobile handsets has undergone a paradigm shift over the last decade, almost being monopolized by players like Motorola and Nokia at the onset of the decade to the massive influx by new entrants thus resulting to a metamorphosis of the market structure. This is especially in volume-heavy and cost sensitive markets such as India and China. Consequently, the major manufacturers have shifted focus towards the developing economies with lower middle income from developed economies with high-income. The increase in number of subscribers from developing economies will trigger the manufacturers to cut down mass-market phones’ price points. At the same time, the manufacturers will also increase features available in the low-cost cell phones.

 What pricing strategies do wireless phone handset manufacturers use? (a). penetration pricing: manufacturers use this strategy with the intention of market share maximization, mostly used in India by mobile phones from China. (b).predatory pricing: solely used with the intent of wiping out competition e.g the case of LG and Samsung in 2003. (c). perceived value pricing: done based on the perception of the customer towards a product and the mother company, and its most common in the sale of Apple iPhones. (d). value pricing: loyal customers are won by a company through the charging a high quality product at a low price.e.g Nokia E63 mobile. How do wireless phone makers attempt to differentiate their handset offerings? With the evolution of the market, two trends will clearly emerge; smartphones6 with a third-party application ecosystem well-defined for development and a very powerful hardware will cause doubling of the market share. The increase in demand will be due to reduced ASP for smartphones as well as the increased disassociation of voice mobile phones. Thus, the distinction between Feature Phone8 and Smartphone categories will diminish due to the constant enhancements of handsets.

Complete the Economics for Managerial Decision Making: Market Structures simulation. In two of the four market structures, using price to compete is not an option. What can Quasar do to improve revenues in one of these structures? Select a company not selected by another student that has used this strategy. Describe the effects on the organization of using this strategy.

A market-mapping exercise has been initiated by Samsung management of getting into fold distributors with relevant market knowledge, well organized distribution network and credibility which will aid in strengthening its market reach. On the front of retail, an initiative to increase enrolled retailers as Samsung Mobile Privilege Partners to 400 from 100 is underway. In addition, another way of increasing revenues by the company is through launching a variety of cell phone models ranging from multimedia phones, comparatively low priced phones to corporate customer phones. Furthermore, the company signed up the Chelsea FC player, Didier Drogba as a brand ambassador so as to enrich its international prospective.

 Identify an organization not previously selected and recommend methods to reduce costs. Nokia can use the following steps in cost reduction.

  • Analyzing the current situations, through consultancy and assessment services to the service providers.
  • Optimizing business processes by streamlining the prevailing network operations.
  • Modernization of the existing assets, so as to perform better in the competitive environment of today.
  • Expand fast and flexibly so as to meet the excessive demand caused by the fast-growing emerging markets.

What effects do technologies have on costs? The effect of technologies ranging from first generation systems to the current 4G systems affects the cost drastically. Hence, 4G products are highly priced due to their accessing of data at very high speeds.

What are some lower-cost sources the organization can utilize to reduce costs? What considerations might cause a profit-maximizing firm to decide to forgo using lower-cost sources?

The major consideration a profit maximizing firm makes so as to forego a lower cost source is basically influenced by the pricing strategy used by the firm. For instance, a firm using prestige pricing strategy will opt for a higher cost source so as to attract the taste of the consumer.

What market structure best characterizes the market in which an online university competes? It operates in an oligopolistic market.

 How does this structure influence the university’s pricing strategy? Due to the few number of other online universities and many customers the pricing strategy is agreed upon by colluding. How does one online university differentiate its product from that of its competitors? Branding is the major form of differentiation of one university’s product from another.  

Have online universities erected nonprice barriers to entry in this market? Can an online university do more to create nonprice barriers to entry in this market?

Yes, they do this through complicating the procedures one has to follower when establishing an online university.

Code: Sample20

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