smartphones market analysis and product development

Topics: Inflation, Smartphone, Mobile phone Pages: 25 (6215 words) Published: December 16, 2013
Strategic Marketing:
Smartphones Market Analysis
and Product Development

Outline

1) Quantitative Analysis

2) Micro Analysis

3) Five Forces Analysis

4) PESTEL Analysis

5) Market Research

6) Product Development

Quantitative Analysis

CAGR AND QUANTITATIVE ANALYSIS USA:
313.9 millions people
285 euros
Potential market: 251 120 000x285x0,5=35 784 600 000 Euros -market size: 114 million people in the U.S. owned  1 000 000x285 = 32 490 000 000 Euros => 92% of the market covered.
41 325 000 000 Euros in 2013 => 56 090 422 500$
2010: 14.7 millions of Smartphones shipped. Average price : 135$. US market size in 2010: 1 984 500 000$.
CAGR2010=( [(end value/beginning value)^1/number of years]-1)*100 CAGR2010 = ([(56 090 422 500/1 984 500 000)^1/3]-1)*100 => 204,611% Industry life cycle: introduction.

QUANTITATIVE ANALYSIS FRANCE:
 66,394,000 people in France: 59 754 600 potential clients 59 754 600 *0,5 *285= 8 515 030 500 EUROS => MARKET POTENTIAL Market covered: 24 100 000*285 = 6 868 500 000 Euros
MARKET COVERAGE: 81%
CAGR: 2008 1 MILLION
2012 13,5 MILLIONS
CAGR 2012 = ([(13 500 000/1 000 000) ^1/4]-1)*100
CAGR2012 = 1,9168 * 100 = 191,7%
Industry life cycle: Introduction

QUANTITATIVE ANALYSIS BRAZIL
Potential customers: 180 606 600 people.
Average price of a Smartphone in Brazil: 375 Euros
Potential market: 180606600*375*0,5 =33 863 737 500 Euros Market covered: 16 120 000 smartphones sold in 2012 in Brazil Market Coverage: 17,85%

QUANTITIVE ANALYSIS CHINA:
Number of people in China: 1,384,694,199 people
Market size: (pop – 10%) = 1,246,224,779 people
Average price of a smartphone: 285$
Number of smartphones per individual: 1
Life span of a smartphone: 2 years
Actual average consumption number: (1/2) = 0.5 actually consumed per year Market potential in value: 1,246,224,779 x 285 x 0.5 = 177,587,031,000$ Market potential in quantity: 1,246,224,779 x 0,5 = 623,112,389.5 213 million smartphones sold in 2012 in China = 34.18% of the market covered CAGR

http://www.mobilitytechzone.com/news/2011/01/12/5239884.htm
10 million smartphones sold in 2011 in China
CAGR = ((213,000,000/10,000,000)^1)-1 x 100 = 2030%
The market grew by 2030% between 2011 and 2012

Micro Analysis
Micro Analysis: Brazil
1) Suppliers
Smartphone suppliers are mostly technological company based out of Asia (China, Taiwan and Japan mostly). These suppliers take care of the manufacturing process, some time of the based components, some time of the whole product. The most recurring problems are the quality of the suppliers, which sometime do not meet the Smartphone company expectation and can create delay leading to shortage of product; and the labor condition, with often too long hours for too little reward (difficulty to respond to the increasing demand)

2) Market intermediaries
Smartphonecompanies only rarely sale directly to consumers due to the high prices of the products. Most of the time, the operators are the intermediary used between the company and the customers and provide special offers. The Smartphone are made to render them more attractive to customers. Operators even sale at losses some smartphone in order to gain an exclusivity contract with individual customers for several years (that is where their profit comes from).

3) Competitors
Nokia 23.1%
Samsung 44%
Apple 12.2%
Somme suppliers have started to open manufactures in Brazil to escape the export cost and benefit of the tax cut for using Brazilian labor.

4) Publics
Due to the importance of football in Brazil, and in view of the incoming football world cup of June 2014, the football player, particularly of the Brazilian team have a lot of impact on the population (even more on the youth).

5) Consumers

The main use of the Smartphone in Brazil is to replace the computer or tablet to access to Internet. There is an increase in the use of Smartphone in the...
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