Executive Summary
India is the second largest and the fastest growing telecom market in the world in terms of number of wireless connections, according to the Telecom Regulatory Authority of India (the "TRAI"). The growth in wireless connections has facilitated the growth of Indian mobile handset industry. The Indian mobile handset market posted revenues of Rs 35,946 crore in FY 13.
The Mobile handset market was dominated by MNC’s like Nokia, Sony, Motorola and Samsung till 2008 when these MNC’s controlled more than 93% of the overall handset market. The high growth in this industry coupled with high profits prompted several players to enter into the market. Micromax was one such Indian player which entered into handset business in 2008.
Micromax which entered into Handset business has grown rapidly and now controls 13% of overall handset market and 19% of overall Smartphone market in India and is now the second largest player after Samsung.
The report analyses various internal and external factors which has helped in the success of Micromax. Some of the major factors indentified in this report for this success are:
Rise of Android
Innovation by Micromax
Asset light business model.
Agility and rapid execution.
Branding and marketing
Optimum balance of durability, features and price
Extensive nationwide distribution network
Methodology
The research group studied in detail the mobile handset segment in India from the perspective of handset players in general and Micromax in Particular. The report is written by the group based on analysis of extensive secondary data collected through online and print media and the insight provided by Professor Saroj Kumar Pani.
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... with $1 billion (about Rs 6,000 Crore) in revenue and to grow it by up to 50% in the next financial year, half of which will come from Smartphone sales. Micromax is also talking to Microsoft to bring out a version of the Windows Smartphone.
8. SWOT Analysis
Strengths
1. Innovative products
2. Asset Low production model
3. Effective promotion campaigns
4. Professional team
5. Market Share
6. Strong distribution channel Opportunities
1. Huge consumption Market
2. Government support for local players
3. Increase penetration in urban market
4. international markets
Weakness
1. Brand image in urban areas
2. Low-quality brand Perception
3. Reliance on imports for critical components
Threat
1. Competition from local and international players
2. Easy Replication of business model by competitors
3. Exchange fluctuations
In 1990s, ground-based wireless phone service grew rapidly around the world. A key factor in the growth of wireless phones was the adoption of a single standard, known as GSM, in Europe and parts of Asia. There were 480 million cellular subscribers worldwide by January 2000 and it reached more than billions before 2005. The economy of scale that introduced will provide the extent of competitive pressure in the business environment. It helps to stimulate Iridium to consider price-performance tradeoff that offered by the substitutes and the need of product differentiation alternatives in advance.
What 's more, the new competitors always can drive innovation in the mobile phone industry. Because if the new competitors want to success in the industry, it has to have something different with other brands to attract the consumers, and this different thing symbolizes innovation in the mobile phone industry. Xiaomi, as a successful new entrant in mobile phone market in 2011, is a good example. According to IDC, in October 2014, Xiaomi was the third largest smartphone maker in the world, following Samsung and Apple Inc. and followed by Lenovo and LG. The smartphone that Xiaomi release is much cheaper than other smartphones, which contain high configuration as Xiaomi did. What Xiaomi has done, is to substantially eliminate the significant 20 percent to 25 percent cut retailers or distributors typically get, and pair that with the vision of earning profits from accessories and web applications within its eco-system (MIUI) instead. Because of the new consciousness of forging greater margins from the phones itself, they carve out a substantial market in a short time and become an effective competitor for the existing
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The company expanded in the 1950aê¡?s and 1960aê¡?s and became semiconductor producers for other manufacturers. Motorola also became a global company in the 1960aê¡?s. In the 1970aê¡?s Motorola introduced the companyaê¡?s first microprocessor and a prototype for the worldaê¡?s first commercial portable phone. In the 1980aê¡?s and 1990aê¡?s Motorola provided the worldaê¡?s first computerized engine control, invented the Six Sigma quality improvement process, launched the MicroTac which was then the smallest and lightest cellular phone on the market. In the 21st century Motorola has provided the worldaê¡?s first GPRS cellular system, the worldaê¡?s first wireless cables modem gateway, and the MOTORAZR V3 cellular phone.
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
Compared with the rate of many decades before, the rate of mobile usage is zooming these days. The developments of general economy and technology revolute peoples’ life styles and bring mobile business into a new page. Nowadays, business trends could still make a huge difference in those mobile companies.
HISTORY OF SONY ERRICSSON (Graphics not available) The company started in October 2001 with the 50-50 collaboration of two major companies Sony corporation, the consumer electronic power house and telecommunication leader Telefonaktiebolaget LM Ericsson. Being headquartered in London and research and development based in Sweden the company has gone global in short span of time to more than 80 countries being the fifth largest company in the world for mobile handsets manufacturing, The company is owned equally by Ericsson and Sony and announced its first joint products in March 2002. As being one of the largest company in mobile manufacturing company expects to acquire the third position in the world for mobile manufacturing. Sony Ericsson Mobile Communications is a global provider of mobile multimedia devices, including feature-rich phones, accessories and PC cards. The products of Sony Ericsson combines powerful technology with innovative applications for mobile imaging, music, communications and entertainment. We can say that Sony Ericsson is an enticing brand that creates compelling business opportunities for mobile operators and desirable, fun products for end users. Sony Ericsson products have universal appeal and are different in the key areas of imaging, music, design and applications. The company has launched products that make best use of the major mobile communications technologies, such as the 2G and 3G platforms, while enhancing its offerings to entry level markets. Sony Ericsson undertakes product research, design and development, manufacturing, marketing, sales, distribution and customer services. Global management is based in London, and R&D is in Sweden, UK, France, Netherlands, India, Japan, China and the US. Th...
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