Cell Phone Industry Analysis

3517 words 15 pages
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Rohan Ramchandani
Zaheer Sayyed

Introduction 1 Dominant Economic Indicator 1 1. Market Size: 1 2. Scope of Competitive Rivalry: 1 3. Stage in Life Cycle: 2 4. Numbers of Companies in the Industry: 2 5. Customers: 3 6. Technology/Innovation: 4 7. Product Characteristics: 6 Camera cell phones: 6 Downloadable Application: 8 Video (Streaming): 8 Internet Access via PC Card: 8  Motorola RAZR: 8  LG the V: 8 8. Scale Economies: 9  Internal 9  External 9 9. Learning & Experience Effects: 10 10. Capital Requirements: 10

The following report details cell phone industry analysis, which deals with cell phone manufacturers as well as cell phone
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Cell phone users use cell phones for more than just talking; the mobile services consumer wireless usage study found that 56 percent of customers used their cell phones as cameras, clocks, calendars, music players, and other non-talk functions. Also, most cell phone owners are between the ages of 18 to 34. However, consumers’ dependency on cell phones can pose a threat that force users to be victims of paying too much for cellular phone services.
There are numerous complaints about low quality service in the industry due to the competition between companies. By lowering costs for the services, the company will lose profits and reduce their shares. Customers today, typically complain about the high cost for the services of having to stay on a contract for a long time and paying an early cancellation fee. Also, with low service line, customers rather pay higher price for better services such as receptions.
Cell phone companies know that consumers dislike mobile-phone services. In fact, mobile phone services were the second lowest-ranked industry. Mobile companies were also the number two sector in complaints in 2005. Many companies claim that consumers love their cell phones and that they’re very happy with the services, which is a half truth. Consumers complain frequently about dropped calls, lousy customer service and exorbitant penalties from exiting a contract.
A new option in cell phone usage has come into


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