Essays on Competition in the Smart Phone industry - Brand-Oriented and Price-Sensitive Strategies Case Study

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The paper "Competition in the Smart Phone industry - Brand-Oriented and Price-Sensitive Strategies" is a perfect example of a marketing case study.   The study below involved market research involving various brands of smartphones. Competition among smartphone brands has increased over time and manufacturers have tried different strategies to gain more market share. Most consumers in the smartphone market are either brand-oriented or price-sensitive when it comes to the selection of a smartphone. Although major global brands like Apple and Samsung are experiencing high profits, their returns are expected to stagnate due to increased competition from other brands.

This will make them consider their pricing strategies over time. Multiple regression and correlation analysis were conducted to determine the relationship between the variables. The findings show that manufacturers should keep close attention to their pricing strategies while keeping up with the technological advancements that may be accommodated by affordable products. Although features like 4G connectivity, applications, home screen design, camera resolution and after-sale services are relevant in explaining the brand an individual may choose in buying a phone, due to recent trends, affordable models are able to incorporate all these components.

This will cause manufacturers to reconsider their strategies in acquiring market share. Introduction Since mobile phones were introduced in the 1980s, their use has increased at an alarming rate around the world. The smartphone sector has not penetrated the global market, and there are a large scope and opportunities for players to seize the future. The most popular operating systems in the world are Android, Windows Phone, iOS and Blackberry. The smartphone market over the years has become fractionalized. Customers who lie the "bottom of the pyramid" are looking for smartphones with a lower price while customers who are at the "top of the pyramid" are looking for more sophisticated smartphones. The transformation of the market is changing from a scenario where one company takes all the profit, but rather a scenario where many companies take most of the profits.

Different players have entered the market tailoring their products to meet different sectors of the market. The smartphone market, like any other market, is suffering from two major threats, competition and saturation from alternative products. Each company has its financial position which determines its risk-reward ration from the committed funds. According to the international data company, half of the smartphones sold in the world today are worth less than $100.

Smartphone prices have become standardised, and manufacturers are trying to capture the budget end of the market. In developing markets, customers are becoming more prices sensitive and have less concern about the brand. Wiko, a French manufacturer which has been in the market for about three years now, claims to have attained ten per cent of the French market and is expanding across Europe.

Since consumers are benefiting from the rapid technology that is happening in the smartphone industry, cheap smartphones do not necessarily mean bad quality.

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