The paper "Mobile Phones in the United States" is a great example of a Marketing Case Study. The BlackBerry Priv is the first BlackBerry slide smartphone made by BlackBerry Limited. The Priv was released on September 15, 2009, two days after opening for preorders (Inside BlackBerry, 2015). The Priv represents a shift for BlackBerry who has now abandoned its own Proprietory BlackBerry OS in favor of the more popular Android operating system. The new smartphone runs a customized android OS with some features of BlackBerry phones (Williams, 2015). BlackBerry decided to adopt android as devices running this OS had cannibalized BlackBerry's early domination of the smartphone market.
BlackBerry wanted a phone that could enable customers to access a large number of apps available on the Google Play Store (Inside BlackBerry, 2015). Older BlackBerry devices can only access limited apps from the BlackBerry world and other apps from Amazon Appstore. Positive responses and reviews from customers who have tried the Priv have created strong demand for the new device (Inside BlackBerry, 2015). However, product awareness levels still remain low for a phone set to challenge the dominance of Apple and Samsung in the Smartphone market.
BlackBerry needs to increase product awareness levels and inform customers about the Priv's superior features. III. Situation Analysis Smartphone Market According to Research and Markets (2015), the global smartphone market is set to grow by 8.1% between 2014-2015. One of the trends that are driving growth in this market is a smartphone with large screen sizes. According to Research and Markets (2015), demand for smartphones with large screens is leading manufacturers to change strategies. Other new technologies that have accelerated the demand for smartphones include cloud computing, LTE wireless networks including 4G and 3G, active browsing of the internet, the popularity of games, and the use of a smartphone as devices for watching videos. smartphone manufacturers face declining profit margins as the price of smartphones declines rapidly.
However, argues that reducing cost is a positive indicator that will lead to the widespread adoption of Smartphones in the market. However, high production costs will also place downward pressure on profit margins in the industry. According to Research and Markets (2015), the intensity of competition in the global smartphone market has led to a massive investment in production.
R& D and marketing costs in the smartphone market have led to the high cost of production in the industry. Industry Analysis: Porter’ s Five Forces The Bargaining Power of Suppliers As BlackBerry's market share dwindled and its market status weakened, supplier's bargaining power continued growing progressively. In contrast, rivals Apple has the best bargaining position as a result of their enormous market power (Research and Markets, 2015). Apple orders massive quantities of supplies and is thus at a better bargaining position than BlackBerry.
The Bargaining Power of Buyer Buyers in the Smartphone market have high bargaining power as they have a wide choice of alternatives Smartphones brands to choose from (Research and Markets, 2015). With more choice consumers are able to exert downward pressure on Smartphone prices in the global market. Modern consumers have the internet to help them make comparisons and competent choices regarding the smartphone products offered in the market.
Cricelli, L., Grimaldi, M. &Ghiron, N. (2008), The competition among mobile network operators in the telecommunication supply chain, International Journal of Production Economics, vol. 131, issue 1, May 2011, pp. 22-29
Datamonitor (2010a), Mobile Phones in Europe, Reference code: 0201-0152, October 2010.
Datamonitor (2010b), Mobile Phones in the United States, Reference code: 0072-0152, October 2010.
Inside BlackBerry (2015). PRIV carriers and retailers now have some new tools to help them show off the smartphone’s specs and features. Retrieved from: http://blogs.blackberry.com/2015/12/exclusive-priv-marketing-material-dives-deep-into-blackberrys-android-phone/
Kotler, P. and Armstrong, G. (2006), Principles of marketing, 11th edition, Pearson education, New Jersey, United States.