MOBILE INC

An 8 Years' Strategy Review of Mobile Inc



An 8 Years' Strategy Review of Mobile Inc

Introduction

This paper will discuss the 8 years' strategy review of Mobile Inc. The major section of this paper includes the company profile, strategy review and implementation in a perspective of a management consultant.

Section 1. Company Profile of Mobile Inc.

Background

Mobile Inc is a manufacturer of headphones sized for mobile phones in the world (with an annual income of $ 1 billion). The company is based in the U.S. and sell their products in the U.S., Asia and Europe. Because of the relatively large investments in R& D, mobile phones are competitive company and business has developed favourably. Attractive designs and customer-oriented were also named as one of the key success factors in business. The main operation of companies operating in the mobile phone industry is composed of manufacturing research and development, production and marketing. 

The turnover of the previous year was just over $ 1 billion. Because of the collusion, the profitability has been good and companies are generating enough cash. This is a good starting point because it is likely that increased competition and rapid technological change in the coming years will test the profitability and cash flow.

Competitive Advantage of Mobile Inc in the Telecommunication Industry

There have been conducted various studies in the past that takes into account information about the Mobile Telecommunication Industry. The telecommunication industry has a competitive advantage as it is considered to be one of the most emerging industries in the world. The industry of the Mobile Telecommunication has competitive environment. The industry of telecommunication is in the position that is constantly competing through its diverse products and services.

According to world statistics the number of mobile telephone customers has been grown around 20% per annum over the last three years and reached more than 4.7 billion people who constantly using cell connection. Although the majority of customers are coming from emerging markets such as India and China, the ratio of non-mobile users in emerging countries is still compare with the local population. Mobile penetration (the proportion of the population that has a mobile) is relatively low in those countries compare with developed European countries. Therefore, global telecommunication companies focus their strategy on expansion in emerging countries.

The first strategy that is introduced by the Porter's theory is the Cost Leadership. The cost leadership implies that the company provides low-cost products to its customers. When the company provides low -cost products to its customers, it will naturally drop down its cost from all areas of business (Porter 1985, pp.32). This process will need the management of the companies to have strict control over the operation process. The differentiation of the products is an important strategy that will help companies to remain competitive in the long run. The differentiation in terms of the quality and features of product would lead the company to earn significant profits. These strategies will lead the company to compete on a greater level with its competitors. The cost focus is an effective strategy that can help the companies by offering their services at the lower price for the customers (Bradley 2005, pp.78). The companies can design their products for customers who are more concerned with the price and are willing to go to the companies that offers reduced ...