The paper "International Strategy for the Phone House" is a good example of a business case study. One of The world’ s leading telecommunications operators is the biggest France telecom brand name Orange. It is also the key brand of France Telecom, With 131.8 million customers. It has focused on three serious sectors of international product offering a level of internet, television and mobile services by 2009, its sales were 50.9 billion euros and customer base of almost 193 million customers in 32 countries. The smaller market area of Europe has serious players including TPH.
The industry data in which the TPH is based is historical data and we need to focus on future projections based on the changing consumer tastes as well as dynamic competition landscape, which are the two driving forces of the Car phone Warehouse TPH (Lymbersky, C. 2008, p. 34). The Consolidated profitability in 2006 data indicates a bad picture in bad and misaligned strategic direction, which has to be changed urgently and fast. Faster than the past growth trend as this means future survival for the phone house (Jalan, 2004, p.
317). Car phone Warehouse plc P& L, account turnover at 1375.5 is swallowed by several non-strategic functions of payroll and rent which are not core business area. There is a need to reduce the cost of sales as well as the operating expenses while re-investing the surplus in the further market expansion programme. It is clear while this could have been spending in exploiting the Strong demand for mobile phones in the emerging international market of Asia and Africa where Global demand was not affected by the financial crisis in rich nations.
While car phone the phone house focuses on a very small France market segment the huge international demand was growing bigger and more than 282 million handsets were sold the first three months of 2008 by Nokia. This growth will continue to drive by rising demand in new markets in Africa and Asia. This scenario shows that key driving forces capable of causing a significant change in industry conditions are the consumer taste change and technology and the speed of dynamism by competitors(Lymbersky, C. 2008 p. 34). The growth also is in the hands of the age bracket between 14 years and 64 years of France are demographic driving forces.
Another factor is the population growth of France unless there is an increase in growth of population then there is no way TPH growth rate can exceed the population growth. According to 2009 demographic estimates CIA, world factbook, already the size of the market remaining for penetration is only 12 million. Most of whom are under 14-year age or in high school or college as the population growth rate is 0.5% meaning there is no future growth of the market at all.
This is because the current population s 62 million while the handsets sold is 50 million (CIA, 2009) the balance of this to the ratio of the population only 12 million and research shows that this is the children under i4 years. Meaning that the total population above the age of 14 is approximately 50 million hence there is no new market to be exploited. The new tastes to service the existing clients or get by switching customers from competitors.
CIA, (2009) world fact book, CIA, New York, USA, retrieved on May 8th,2010
Jalan, P.K. (2004) Industrial sector reforms in globalization era , Sarup & Sons, New Delhi, India.p.317
Get through Guides, (2008) P5 Advanced Performance Management (Intl) Study Text, Get through Guides, UK
Hämäläinen, R.& Saarinen ,E (2004)Systems intelligence: life, Systems Analysis Laboratory, SAL ,Helsinki Univ. Of Technology, UK, p.128.
Lymbersky, C. (2008) Market Entry Strategies: Text, Cases and Readings in Market Entry Management, Christoph Lymbersky,uk
OECD, (2003) OECD Communications Outlook:Information and Communications Technologies,OECD Publishing, Australia
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2001, restructuring public utilities for competition and regulatory reform, OECD Publishing, Australia,
Srivatsava, S.K. 2005, Organisational behaviour and management, Sarup and sons, New Delhi
BBC news (2008) strong demand for mobile phones, retrieved on 8th may 2010,