Introduction
The growth of services sector in our economy is a step forward in the development of Indian economy. In day to day life of an individual the use of mobile phones acts as necessity in getting connected with people for one or the other purpose. India has a largest variety of smartphones available for the users. Because of the fast technologies in smartphones & in market, the networks and services providers of telecom must be updated so as to meet the requirements of people. Indian telecommunication industry is considered to be one of the fastest growing telecom industries in the world. The mounting up of the subscribers reaches to an approximate 800 billion plus users in telecom sector. The industry is growing at as pace in such a way that it will reach a level beyond the telecom markets of USA &
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Sathish, K. Santhosh kumar, K.J. Naveen, V.Jeevanantham
This research paper refers the study with the diversified population of Chennai, tamil nadu. The researcher of this paper believes that a mass of population includes more of low or middle income groups in Chennai. Tamil nadu consists of a mix of all types of income groups. The study uses an intensive literature review to figure out the factors for switching behaviour. Literature reveals about the factors of switching cost, better customer care services, networking coverage, advertising , etc for switching behaviour of customers. The researchers identify the problem of industry that if one firm gains then other must be losing a customer. Number of network providers are increasing calling for an intense competition. Empowerment of technology has led to growth of mobile industry more economical.
The objectives are to ascertain best market share of telecom providers, switching attitude of population, most crucial influence in affecting switching behaviour and purchasing a SIM card.
Research methodology The research methodology used
Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.
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.
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.
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint, MCI, and AOL, but simultaneously the very high cost involved with entering and competing in this industry also makes it very unattractive for new entrants. These are just some of the big names who are planning to and are presently providing parts of the pipe dream that AT&T seems to seek. In this industry it is very important to have customer awareness of the line of products you carry. Most of the public hears the name AT&T or Sprint or MCI and they think telephone bills but many consumers do not realize that these companies have expanded their field of services from cellular phones to wireless web services. The reason mainly being the lack of marketing, and direct consumer advertising provided by these firms on the other line of p...
As the largest telecommunication company in the United States, Verizon sells the superiority of its network as the number one competitive advantage. However, over the course of a decade the telecommunication industry changed and having the best network was simply not enough to stay relevant. Telecommunication is an expensive business. “The financial challenges of keeping up with rapid technological change and depreciation can be monumental” (Investopedia, 2015). The Porter’s 5 Force Analysis of the telecommunication industry revealed that the availability of substitutions are high. This drives increase competition in the industry. Furthermore, deregulation has helped to increase new entrants.
The mobile phone retail industry is characterized by disruptive technological innovation such that retailers have to stock the latest phones to attract customers. By exploiting the e-commerce platform and the high street retail experience Phone 4u remains technologically ahead or at par with its fierce competitors. 3G network has become popular due to its advanced feature and speed; already plans are underway to roll out the 4G network that will be more superior to the 3G network. The tech-savvy young Britons drive the demand for the advanced internet networks. Failure to keep in touch with the latest technology will have adverse effects on Phone 4u because it will cede market control to technologically confident rivals such as Apple Store.
The aforementioned high barriers to entry challenge the top four cellular-service providers. The high fixed costs cause companies to want to acquire as many customers as possible to spread the fixed costs, and thus reduce overall costs. High competition means that customers can take advantage of competitive pricing. Additionally, customers have the advantage of almost non-existent switching costs once their contracts expire. However, customers realistically only have four cellular-service providers to choose from, so customers only have moderate buying power. The aspect that makes the cellular industry an attractive target for Virgin is that there are virtually no threats of substitute products. Once a company establishes itself, the potential for profits is high, but gaining a foothold is difficult. Virgin Mobile proposes that entering into an untapped youth market will help establish brand. Subsequently, it is vital that Virgin formulates their pricing strategy in such a way that will attract and retain a young demographic.
There has been an increasing demand of telecommunication services in the last few decades which has led to an all time high demand of global operations in businesses , their capital investment as well as mobilization of the resources. This has further resulted in a lot of changes in the lifestyle of the people within specific geographies that includes an increasing demand for the latest of technology as well.
Cellular phones carry a diverse group of users. In June 1985, there were about 203,000 cellular phone service subscribers. By June 1989, the number had exploded to 2.7 million subscribers, and by June 1995 there were mire than 26 million subscribers. When cell phones were first introduce, only people with a lot of money had them and the service was very expensive. It was a lot cheaper to stop and use the pay phone than it was to use a cell phone. Now, it is almost as cheap to use a cell phone to make a long distance call as it is to make a long distance call using AT&T.
According to mobile industry analysts, the future global market for smartphones will be to reaching more than 650 million in upcoming years. The global smartphone market is dominated by Android, with 61 percent of the total market share and iOS from Apple with 20.5 percent of the global the total market share in 2014. This growth can be determined by factors including less demanding product cost, improved handset design and functionalities, emergence of internet data network technologies, adjustment and upgrade of operating systems. Consumer familiarity about the advantages offered by these devices, especially email and e-transactions, amongst others, would directed to smaller markets in the industry. Smartphones will be facing the concerns of demand in developing countries, especially Asia-Pacific. Emerging countries including will be expected to register significant increase in smartphone usage. (Global Data,
In comparison to other telecommunication companies such as Sprint and AT&T, Verizon has a competitive advantage that is relatively easy to observe. This advantage that they possess is the company’s ability to adapt to the ever changing telecommunications market. In a statement published on the company’s website regarding their industry, “The number of American wireless customers now exceeds 290 million, a penetration rate of approximately 95 percent. “ ("Company Profile.”) They acknowledge that the market for wireless services is now saturated and now they are aiming towards new frontiers in communication.
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).
The changes in the technological can influence many part of societies. When the AT&T Company introduce their new product and services which is wireless and wire line technology will effects occur primarily through the new products, processes, and materials. Thus, changes in technological also often can achieve higher market share and earn higher return because, newly emerging technology from AT&T could derive competitive advantages. For example, internet today becoming more remarkable capability to provide information easily, quickly, effectively, and also can create more value for customer in the future and to anticipate future trends.
Telematics is a new method brought about by some insurance companies to charge premiums from clients based on the driving behavioral information collected by the device attached to cars. This new method breaks through the usual manner of pricing the insurance policy which involves insurers gathering statistical data and preparing it to check which people fit into what categories. They are then charged premiums accordingly. However, with the usual pricing strategy, there has been a problem of adverse selection (a market failure where bad products are more likely to get selected because of little information to either buyer or the seller), where the insurer does not fully know the risk that the client faces. Telematics can help against the issue of adverse selection depending upon how consumers open up to this policy, and the implementation of such policy may be more effective than the usual insurance pricing policies.
India has seen unprecedented growth in mobile subscriber base and is second only to China. It is expected to have73 % mobile penetration in India by the year 2016. Mobile usage, which was previously restricted to urban India, has started penetrating the rural hinterland of the country at a good pace. The rural tele-density has grown at a startling rate and is over 15 per cent