The paper "Structure in the Mobile Phone Industry" is a good example of an assignment on business. The Structure Conduct Performance approach is employed in analyzing the connection between the structure of the industry along with the performance of firms in the industry through their conduct. Structure deals with the amount and distribution of firms in the industry, entry barriers, and advertising. Conduct covers pricing by the firms, output decision and attitude towards rivals and performance will be indicated by efficiency, profitability, and market growth. Structure in the Mobile Phone Industry Since there are many buyers of mobile phones in the UK market who individually have very limited purchase power, the number and size distribution of mobile phones is a one-structure variable.
The price power of mobile phones is strongly controlled by manufacturers who also play the real seller roles (Gee, 2013). The biggest mobile phone manufacturers in the United Kingdom include Apple, Inc. , Samsung, Nokia and. The rest, HTC, Motorola, LG, and Sony fall behind. It is obvious from figure 1 that the UK mobile phone market was dominated by the 3 biggest firms which are Apple, Samsung, and Nokia which occupied 65% market share in the sum in 2013.
It is significant also to note that even though Nokia has been placed among the biggest brand, its popularity has been declining in the past few years since it was number one on the list but recently overtaken by Apple, Inc. , and Samsung (Gee, 2014). From the figure below, we can see that the concentration ratio of the 3 biggest firms has been constantly increasing regardless of the slight fall in 2011, mostly because the significant market share of Nokia fell from 26% to 21%. As revealed in the previous paragraph, Nokia lost its position because of its slow response to manufacturing smartphones (Gee, 2011).
Samsung and Apple, on the other hand, took advantage of this and even occupied more than Nokia lost. Their growth was 17% from 2010 to 2013 compared to the market share loss of 10% for Nokia.
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