Strategy Essay Example | Topics and Well Written Essays - 2000 words

Strategy - Essay Example Over the last few years, mobile communication industry has increased in significance and size to grow into one of the key industries in Europe, overtaking pharmaceuticals and is now at per with aerospace firms. In the year 2010, the total revenues in the mobile handset market amounted to over 174 billion Euros and these figures are expected to keep going up as the market grows and the existing competing firms increase their production capacity as well as consumer base. Currently, mobile services are virtually ubiquitous with coverage almost at 100%; in Europe, the mobile penetration rate is well over 120% that towers over Japans, and America’s 100% and 104% respectively (Whitehead and Philips et al., nod). This is representative of over 600 subscriptions held by half a million Europeans, bearing in mind that many have more than one SIM card. Understandably, mobile services are the main form of communication, and they are used across all social, economic and age groups in Europ e. Because of the high revenues and rapid expansion, many mobile firms have joined the mobile phone industry and this has resulted in intense competition as the firms try to capture the lion’s share. ... Analysis of the Competitiveness of the Industry As aforementioned, the mobile industry is extremely competitive in Europe and firms are using all manner of strategies to keep ahead of the competition; this often involve developing new and more attractive technologies such as Android. This direct competition can attributed to saturations in the market which make it difficult to â€Å"Grow around the competition† (Dess et al.,2012, p.181).Firms are also producing more effective and convenient devices such as smart phones and tablets; furthermore, many of the new gadgets are being priced at comparably lower prices. One of the main competitors in the mobile industry in Western Europe is Samsung; today Samsung has evolved itself from a nondescript South Korean firm to become a dominant player in the global mobile market (Cellan-Jones 2013). Until 2012, Nokia had been the world’s leading brand in mobile phone production and exported more handsets as compared to other firm, ho wever, Samsung electronics, which also leads in the manufacture of TVs and screens overtook Nokia to become the world’s top mobile firm. Expert’s project that Samsung is likely accounts for 29% of all the mobile handsets shipments globally; on the other hand, Nokia’s share in the global shipments went down from 30% to 24 % within the same year (Deagon 2012). Samsung’s success can be attributed to innovative and proactive strategies; while its products tend to be pricey; it invests in the latest technology such as android for its devices and ensures that it gives its customers their money’s worth. Samsung has also diversified more than any other firm and in addition to holding the top market position for mobile handsets it