Essay on Market Competition Of The Mobile Market

Essay on Market Competition Of The Mobile Market

Length: 2162 words (6.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

5. Market Competition
5.1 Market Competition
The Mobile market is dependent on the availability of spectrum as a resource. A explained in section 3, spectrum is an in demand scarce resource. When assessing the market structure of the mobile markets generally, the focus falls on the area of spectrum and licensing. OECD (2014) stresses that it is the number of facility based networks in the same geographical region that provide a competitive market. The report explains that in all OECD countries, there are at least three mobile network operators (MNOs) which broadly compete on a national basis. As can be seen from figure 4, the EUR 5 countries each have 4 major MNOs, suggesting an oligopolistic environment.
Figure 5 – MNO market share EUR 5
5.2 Market Concentration
The Herfindahl-Hirschman Index (HHI) can be utilised to gauge levels of rivalry in national mobile markets (the lower the index figure, the more competitive market). For the EU5, during the last seven years, the HHI has by and large demonstrated a consistent decay as shown by figure 5. This demonstrates that competitiveness has increased (Analysys Mason, 2014). This mirrors the accomplishment of smaller operators, and in fact MVNO brands, in enticing clients and invigorating value rivalry in the market. The market share for the overall industry for MVNOs in Europe is presently approaching 10%, with specific accomplishment in markets for example, the UK and Germany (where the average is closer to 20%). The most sensational change in competition pressure is apparent in France. Having a reputation of being positioned as the least competitive of all the EU5 markets, France has seen a sharp fall in its HHI since the launch of the fourth mobile operator in mid-2012.


... middle of paper ...

...n Virgin Mobile UK, which has outperformed its MNO.
Google is susceptible to hurdles prior to launch. These barriers keep contenders out of the sector. These challenges include evaluating partners, acquiring expertise, adverse wholesale contracts and constraints. Leasing agreements and mobile vendor relationships are important to diversify the offerings. Google will begin with a network leasing contract with Vodafone. Google will outline offers, client interfaces, handsets and circulation channels. These are primary steps that MVNOs take from the 'drawing board ' to the 'real world ' as each step has potential hindrances.
Economies of scale characteristics of mobile enterprise models present a challenge for MVNOs. In its simplest form, this implies that businesses get to be aggressive regarding expenses after it expands by reducing the total cost for every unit.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Technology And The Mobile Phone Market Essay

- Today, there are over 6 billion people in the world. Out of those 6 billion people, 4.6 billion people have access to a cell phone/ telecommunication device. Technological advances has allowed the cell phone market to flourish and grow since the late 20th century. In fact, in the last 20 years cell phones have evolved from landlines to smart phones. While there are many effects from the growth of the mobile phone market, it is important to observe and analyze the positive and negative externalities on which the mobile phone market presents to both producers and consumers....   [tags: Mobile phone, Smartphone, Internet]

Better Essays
934 words (2.7 pages)

Market Research Implementation Plan Essay

- Market Research Implementation Plan Introduction There are many times throughout the product life cycle when an organization may decide to enhance or upgrade one of its products so that it can remain competitive in an ever-changing business world. The changes that the organization decides to make will have a decisive effect on the continued sale of the product. For an organization to successfully make changes that will benefit and appeal to potential customers, it must first conduct extensive market research to pinpoint the changes that will provide the greatest benefit to the sale of the product....   [tags: Market Research ]

Better Essays
1849 words (5.3 pages)

Samsung : Facing The Competition Increasing Of China Essay

- Summary: (25pts) Samsung is facing the competition increasing in China. On 10/23, the report of operating profit in this year has fallen about 60% that compare a year earlier. Since many people in Asia area are feeling the price of Samsung 's device is too high. For example, Galaxy S3 phone, the used to most successful product in China cost $573. But the new domestic brand- XIAOMI just cost $372 that almost is the same quality as Galaxy S3. Although, Samsung is still the No. 1 Smartphone maker around the world, it seems has lost market shares in recent quarters in the Asia....   [tags: Marketing, Profit, Profit, Competition]

Better Essays
1094 words (3.1 pages)

Essay on Mobile User Interface Design in Apps and Mobile Sites

- Handheld and mobile devices have been an increasing necessity as their capabilities and functionalities have increased over the past few years. Despite that mobile technology's emergence is recent, there are a lot of factors that have helped in the development and evolution of its user interfaces for the mobile web and mobile applications. While mobile technology can be seen as a new and dominating medium, there are a few problems that many developers and designers have faced. Nonetheless, the design of user interfaces for Mobile Applications and Mobile Websites are ever changing and provide for a lucrative business, and because of that there are many advances in its technology and structur...   [tags: Mobile, Interface, technology]

Better Essays
1009 words (2.9 pages)

Global Competition Of Automobile Market Essay

- Global Competition in Automobile Market The automotive industry is dominated by a few key players. Kallstrom explains, “The top five players have a significant 49% share of the global automobile market. This share decreased by 5.1% in the 15-year period from 1998 to 2013. Smaller companies slowly took the major automotive companies’ share away. In terms of vehicles produced, General Motors (GM), Ford (F), Volkswagen, and Toyota (TM) are still featured on the top five list.” It is important to note that Hyundai comes in at number five....   [tags: Automobile, Automotive industry, General Motors]

Better Essays
984 words (2.8 pages)

The Mobile Telecommunications Industry Essay

- The mobile telecommunications industry in Ireland has always been a competitive and rapidly changing industry. It has changed considerably from it’s initial birth with only one competitor, to it’s liberalisation in 1998, all the way through to the introduction of MVNO’s in the 2000’s. Mobile penetration has increased from 42 % in 2000 (Telecommunications and Internet Federation, 2005) to almost 97% of Irish adults owning a mobile phone now in 2013. (, 2013) In order to fully understand the rapid development of this industry and the future of it, we must first look at its history in 1998....   [tags: Mobile Network, Firm Strategy]

Better Essays
2115 words (6 pages)

Essay on The Mobile Phone Market

- ... The markets are starting to get saturated with many product choices for consumers but with no real differentiation between products. Reasons being that many companies have patents on intellectual property which other companies can’t use to their innovative advantage. (Schechner, 2014) Companies within the industry are not only finding it hard to develop new and exciting products but companies are having patent wars with each other which is using valuable resources. Experts also point out that there has been a rise in the activity of “non-practicing entity” or ‘patent trolls’, which have libraries of patents but never create any of their own products....   [tags: intellectual property, companies, industries]

Better Essays
3123 words (8.9 pages)

The Mobile Broadband Market Essay

- To meet these needs, operators require extreme flexibility in their network and operations to satisfy their customers by responding with rapid time-to-market performance. In parallel, they need to see a drastic reduction in their total ‘production’ cost per bit. This has lead to the teams’ innovative development of the telco cloud. This has the potential to help operators meet all these needs. (; 2014) By improving internal processes to gain competitive advantage, management rolled out ‘’I Own Quality’’ concept....   [tags: nokia solutions, network]

Better Essays
2654 words (7.6 pages)

Essay on Maintaining A Strong Mobile Friendly Website

- As the internet continues to build in popularity, more companies are realizing the value of maintaining a strong web presence complete with consistent content and captivating graphics. However, smartphones and smart devices continue to dominate the market and show no signs of slowing down. Because of this fact, thousands of companies are channeling their efforts into upgrading and streamlining their websites to become mobile friendly. There are a few reasons to consider behind this move. For companies that are looking to stay on top of the trends and maintain relevancy in the marketplace, there are five main reasons why it is imperative to develop and maintain a strong mobile friendly websit...   [tags: Mobile phone, Personal digital assistant, Laptop]

Better Essays
705 words (2 pages)

Essay on Prices, Elasticity and Competition

- Prices, Elasticity and Competition RESEARCH PROPOSAL This research is on the product of Nokia 8210,including the state of price,the elasticity of demand and the state of competition which affect Nokia 8210 and the firm in the mobile phone market. The main obstacles are selecting information from the given resourses awide range of information accurate. To get the most widely information, I decide to do my survey on the internet. How will I answer the questions : 1. How is the product affected by price and non-price competition....   [tags: Papers]

Free Essays
1895 words (5.4 pages)