JAMAICA'S MOBILE INDUSTRY

Jamaica's Mobile Industry

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CHAPTER 2: LITERATURE REVIEW

The aim of this chapter is to integrate all the previous findings and researches of the previous scholars and researchers. The findings and researches illustrated in this chapter will enhance the understanding and make the research findings more appropriate. The literature of this will be elucidating the 'Jamaica's Mobile industry' which is the largest mobile industry successfully providing the communication services across boundaries and languages.

Theoretical Background

Key Sources

The key sources for the study include 5 forces framework, PESTEL framework and Economic Market Structures. However, best sources have been selected by the researcher for this study. The literature of the study includes all the relevant or similar information that eventually enhance the understanding of the researcher. However, to collect the secondary qualitative research data, both public and private libraries have been accessed by the researcher in order to collect the required information that satisfies the findings for the study. The researcher criteria for 'key sources' includes comprehensiveness, scholarship and quality of research, contribution of new information, ideas and insights, efficient organization of information and quality or accessibility of writing. Each key sources of the study one way or the other meets the criteria of study under discussion. The researcher has provided the citation of the items included in this study. However, the complete references are added at the end of the study.

Key Theories, Concepts and Ideas

In the study three key theories, concepts and ideas were used by the researcher that includes 5 forces framework, PESTEL framework and Economic Market Structures.

Economic Market Structures

The environment in which a firm sells and produces its product is referred as market structure. There are three distinct characteristics of market structure.

The ease of exit and entry of firms

Degree of product differentiation

Number of firms in the market

There are generally four broad categories of market structure that usually exist in a market in the real world i.e. monopolistic competition, monopoly, Oligopoly and perfect competition.

Monopolistic Competition

In the real world, there are several or many sellers that generally produce either similar or differentiated goods or products essentially the same apart by different promotional packaging, brand names and styles (Dixit and Stiglitz, 1977, p.305). This state of the market in the real world is referred as 'monopolistic competition. In such instance, no brand in the real world market dominates and the competition remains between different brands producing either differentiated or similar goods or products. Similarly, no firm in the market is capable of influencing the supplied quantity and price in the market.

Monopoly

A state of the market in the real world where a firm is capable enough to influence the supplied quantity and price to the market is referred as Monopoly. The firms having the monopoly in the real world are also referred as firms with monopoly power. In the state of monopoly one firm of the market or the industry dominates the other existing in the market due to certain advantages (Bresnahan and Reiss, 1990, ...