Situational Analysis of Mobile Phone Market

BY:AYUSH LOHIA (221) ANIRUDH BHARDWAJ (211)JAISHRI SHANKAR (209)PUNEETH CHOWDHARY (223)

LOVNESH GARG (242)RUPAM SHARMA (248)TONURUCHI OLIMMAN (261)

INTRODUCTION TO THE INDIAN MOBILE PHONE INDUSTRY

Today a mobile phone has become the necessary part of one’s life. Earlier mobile phones are meant for only calls and short messages but now they mean more than that. Top Players Of the Mobile Phone Industry of India • Samsung• Apple• Nokia• LG

Mobile phones are being sold in India through offline and online markets. But a recent survey reveals that online market sales for mobile phones have been drastically reduced. This tells us how closely the consumers want to see the products before buying.

Samsung25%

Mi-cro-max14%

Intex11%

Lava9%

Karbonn5%

Other36%

Indian Mobile Handset Shipment Share Q2 2016

PESTEL ANALYSIS

POLITICAL FACTORS Political environment play an important role in marketing decisions of a mobile

company which includes taxation, operations etc.

Make in India is an initiative taken by the government which gives boost to those companies which are going to set up their manufacturing facility in the country.

Through this a mobile manufacturing company can avail some concessions in taxes.

With GST act being passed the rates on mobile phones are going to decrease and company can pass some benefits to the customers.

ECONOMIC FACTORSThe economic environment consists of the factors that affect consumer’s purchasing power and spending patterns. India’s GDP is growing at good pace so is the per capita income. Increase in the consumer’s income increases the sales and helps the company to invest more on R&D and expansion

ENVIRONMENTAL FACTORS• Keeping in mind that majority of e-waste is from mobile phone the company should

take the following measures• Raw material used should be recyclable.• Energy efficient components should be used.• Eco friendly material should be used in manufacturing and packaging.

 

SOCIAL FACTORSIndia’s population is growing tremendously day by day. Majorly we have young population that the company mainly targets. Different people have different tastes and preferences. So, the company should understand the needs of different groups and provide the products accordingly

TECHNOLOGICAL FACTORSTechnological Innovations and advances are perhaps the most dramatic forces affecting today’s marketing strategies for Mobile manufacturers. Their survival depends on how the company launches the product which is different from already developed technology. Now a days people use phones not just for conversations but are using them different purposes. So, new technology and features should be provided.

Eg: High battery power, high camera resolutions, storage capacity and fast processors at lower prices.

LEGAL FACTORS In India the maximum permissible SAR value is 1.68w/kg. Beyond that companies are

not allowed to sell their products. The company should disclose all the matters relating to the product to the consumers. Necessary permissions should be taken before launching new product.

It is a business model developed by Michael Eugene porter an American academic. This is mainly used to know the position of the company in industry to influence or defend itself from different forces which are as follows

Barriers to entry: . In the past decade, there were only a few mobile companies in the industry and barriers to entry were high, but technological advancements and capital helped firms to enter into the market. Medium to High Force.

 Threat of substitutes: Companies need to innovate their products to retain their existing customer base. Tablets and ipads cannot be considered as a substitute for mobile phones.

 Buyer’s bargaining power: They play a major role in most of the countries but in India it is not the case, here electronic stores also have medium force.

Supplier’s bargaining power: Supplier’s power is medium because the suppliers can control the price of components they provide.

Competitor's rivalry: This is very high because it is really difficult for a new player to compete and gain market share against major brands in the mobile industry.

PORTER’S FIVE FORCES