Wednesday, May 6, 2020
Australian Mobile Phone Industry-Free-Samples-Myassignmenthelp
Question: Discuss about the Australian Mobile Phone Industry. Answer: Introduction Mobile Phone market consists of all cell phones, smart phones that are used for communicating via a mobile. The following market is divided into two parts namely the feature mobile phones and the Smartphones. Smartphone are advanced cell phones that serve as mini computing devices and run on an mobile operating system. Feature phones on the other hand are common handsets that do not offer any special advantages apart from browsing the internet or taking pictures. The Australian mobile phone market is a growing market and has shown a gradual improvement in the sales figures. However the trend has shifted towards a negative growth from the year 2015 and experts predict a complete downslide of the market in the year 2021. One of the most noticeable factors of the mentioned market is that it is one of the most penetrated Smartphone markets of the world (Hamka et al. 2014). Macro Environment Economic impact of mobiles in Australia The introduction of Mobile phones has globalized the way people communicate with each other. The advancement of technology has seen the discovery of Smartphones which has further changed the perception of the modern world (Abeele et al. 2014). Mobile broadband connections will increase from 55% to around 73%. An estimated 5.7billion Smartphone user will be present in the year 2020 with an increase in the data traffic of over 47%. The revenues from data growth will be around $1.14Trillion. The most notable factor is the prediction of 60% digital inclusion around the whole world by the year 2020. Mobile phone industry will contribute to around $4.2 trillion in the coming years which at present are around$ 3.3 trillion (Shaikh and Karjaluoto 2015). Australian Revenue and Large Companies The Economy of Australia is one of the most developed in the globe. The Australian GDP is AUD$ 1.67 Trillion as of the year 2016. Total wealth of the island continent is around $8.9 Trillion. In 2016 it is the 12th largest national economy in terms of nominal GDP. There are many large companies present in Australia which are registered with the Australian Stock Exchange (Hubbard et al. 2014). Large companies include Wesfarmers, National Australian Bank, ANZ, Commonwealth bank, Caltex and Rio Tinto group (Agar 2013). Australian Mobile Phone Market As mentioned earlier the Australian mobile phone market is one of the frontrunners in the Smartphone industry. However if predictions are to be believed the market will be saturated in the coming years. The total revenues of Australian market are around $3405.9 million in the year 2016. The growth rate was around 5.1% starting from 2012 to the year 2016 (Agar 2013). The consumption volume of the market increased with a CAGR of 3.3% in between the year 2012 to 2016 (Sarker et al. 2016). Approximately 9.7 Million units of Smartphones were sold until the year 2016. The figures are set to grow at 10 million units in the year 2021 as a result of the slowdown. The CAGR rate will also fall to 0.6% in between the year 2016-2021 (Jackson et al. 2014). Global Mobile Phone Market The global mobile phone market is currently matured in the developed world with an average of more than one phone or one subscription with every individual. Currently the growth rate is seen in emerging markets of Asia-Pacific, Middle East, Latin America and Eastern Europe. India and China contribute the most in the Smartphone industry of the world. Major Smartphone companies of the world are Apple Inc, Motorola Inc, Acer, Google, Panasonic, HP, LG Electronics and many more as such. According to Agar (2013) the different companies are engaged in research activities to develop their products further and maintain a superior competitive advantage in the global market. Australian Market Profitability Demand for the feature phones in Australia was very high before the introduction of the Smartphone. Microsoft Nokia was the leader in the category accounting to around 32% retail volume share in Australia. But the adaption of windows as the operating system of the Smartphone severely affected Microsoft as sales figures declined to around 65%. The increasing replacement cycle and creation of the saturated market has is expected to lead the retail volume of sales of the Smartphones in the country. The change in the models and the adaption of new features has failed to woo the customers and companies are struggling to sale new phones to the citizens of the island continent (Bhatti et al. 2017). Some manufacturers have been changing their approach and implementing new strategies to make their product successful. Apple has introduced a new technology called bezel-less display and launched a new range of Smartphone. The use of such advanced technologies may help in the turnaround of the bu siness (www.apple.com). Figure No 1- Smartphone and Tablet Ownership in Australia Source- (Huang et al. 2014) Government Policy in Australia All laws and codes of conduct that apply to the ACT government employees also applies to the general employment of the different mobile devices that are used in the country. The Australian law maintains shared services that are on a list of approved devices fully supported by the government (Fleisher and Bensoussan 2015). The requests to purchase devices must be in accordance with the ACT Government Purchasing Guidelines and should be approved by the delegate of the officer. The usage policies of the mobiles depend totally on the ICT Resources Policy (Golev et al. 2016). The current ACT government mobiles contract with the company offers two voice plans. The first one being the $17.00 per month unlimited voice plan and the other one being the Pay as you go voice plan (Huang et al. 2014). Socio-Cultural Factors Political factors- Australia is considered to be one of the safest places for investment. The political and regulatory environment of the island continent is quite stable and risk free. The country is also very much open and progressive and provides investors with a very high degree of confidence and certainty (Huang et al. 2014). The presence of a skilled, well educated and multi lingual workforce and most importantly the strategic time base of the country help the investors to develop a competitive edge in the market. Economic Factors- The property prices in Australia are generally high as it is a developed economy. The high range of demand for rental spaces in large cities of the continent makes the market very profitable for the investors to invest heavily. The stable political condition of the country has helped the country to become one of the topmost economies of the globe. The GDP of the country is higher than US and UK which shows the development of the country. Strong GDP, stable economic rates, rise in the exchange rates and low levels of inflation and unemployment makes the country an economic powerhouse (Shaikh and Karjaluoto 2015). Social Factors- The society of Australia can be divided into three main types namely the upper class, the middle class and the working class. The rich persons that falls in upper class consist of around 5 to 10 percent of the countrys population while the most part of the population is middle class. Higher education generally forms the basis of the countrys employment opportunities. Presence of a large number of secondary schools and most importantly colleges and universities makes Australia one of the best places to pursue higher education (Hamka et al. 2014). Technological factors- Technology leads to improvement in the cost, improvement in the present quality and new innovations. The Commonwealth Scientific and Industrial research Organization and Defense Science and Technology headquartered in Melbourne and Canberra. The concentration of research and development in and around Australia, growing role of industry in supporting innovations and appropriate funding has helped the country to be a technologically improved country (Huang et al. 2014). Segmentation of the Mobile Market The island nation of Australia accounts for 2.6% of the market value of the Asia-Pacific mobile phones. While China leads the table with a 45.6% value Australia is in the fifth position preceded by Japan, India and South Korea. The market segmentation in Australia accounted to around 3,405.9 million in the year 2016 (Hamka et al. 2014). The segmentation of the market is based on three factors namely understanding mobile consumers behavior, geographical segmentation and keeping a tab on the works of the other industries. Figure No 2- Mobile Segmentation Source- (Hamka et al. 2014) GEOGRAPHY 2016 % CHINA 59.885.9 45.6 JAPAN 17,432.0 13.3 INDIA 14,110.3 10.7 SOUTH KOREA 9,882.4 7.5 AUSTRALIA 3405.9 2.6 ASIA-PACIFIC 26,681.0 20.3 TOTAL 131,337.5 100% Table No 1- Global Market Segmentation Source- (As Created by the Author) Target Market of Australia The leading mobile network service provider in Australia is Vodafone Hutchison. The company has aimed to make $1 Billion every year from all the small businesses in Australia to increase the amount of corporate customers in the country. The company plans to increase the share of the $4.5 Billion small business market from 6% to 18% by the year 2019. Samsung on the other hand is the largest seller of Smartphone in Australia (Shaikh and Karjaluoto 2015). The company has segmented out the market of the country and has put stress on the urban centers of Australia. They have targeted the youth generation for selling their new brands of specialized Smartphone (Hamka et al. 2014). Conclusions The above report on the mobile phone industry has provided a very detailed description of the different trends of the mobile phone industry of Australia. The main report is based on the use of mobile phones, the segmentation of the market, target market and some other notable elements of the mobile industry of Australia. A thorough analysis of the following report will help us to conclude that the aims and objectives of the following report has been achieved. The readers can easily have the idea of the mobile market and the related elements of the mobile market of the country Recommendations Some recommendations of the researcher are as follows; The operators must ensure to bring forth new technologies and innovative ideas while launching new mobile phones for the customers of Australia to prevent the market from getting saturated. There should be more penetration from the mobile operators to push for a 100% digital inclusion of the country. The companies operating in Australia should target other age groups rather than targeting the niche population to increase the demand for the Smartphone. The companies must take advantage of the socio cultural scenario of the country References "Apple."Apple. N.p., 2017. Web. 2 Sept. 2017. Abeele, M.V., Antheunis, M.L. and Schouten, A.P., 2014. 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