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Technology management
The mobile phone industry is a $1.18 trillion global industry dominated by smartphones, with the smartphone market expected to grow 46.4% annually and Android accounting for 75% of smartphones sold; the mobile phone market in India is led by Samsung and is worth $6-8 billion annually, with lower income groups making up 70% of sales.
Technology management
- 1. Mobile Phone Industry Globally
- 2. Mobile phone industry(Globally) •$ 1.18 trillion industry – 14% from handsets sale • 6 billion mobile phone subscribers at end of 2011 – 76% of them in developing world • Expected to rise to 8 billion by end of 2013 • 87% percent - Global market penetration rate • 3.2 billion - Unique mobile phone subscribers • China world’s largest market. Followed by India and US
- 3. Mobile Handsets • Expectedsales of 1.8 billion handsets in year 2012. Up from 1.7 million in 2011 • 38.8% of sales will be from smartphones. A 10% increase YoY • Android accounted for 75% of smartphones sold in Q3 2012 – 91.5% YoY growth • Market growth rate for smartphones is at 46.4%
- 4. Mobile handset marketin 2011 Market Share Nokia Samsung 23.80% Apple 33.70% LG Electronics ZTE 17.70% RIM HTC 1.80% Huawei 2.30% Motorola 2.30% Sony Ericsson 5.00% 4.90% Others 2.40% 2.90% 3.20%
- 5. Mobile Handset MarketShare 40.0% 35.0% Samsung Nokia 30.0% Apple 25.0% ZTE LG 20.0% Huawei 15.0% TCL 10.0% RIM Motorola 5.0% HTC 0.0% Others Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
- 6. Worldwide Smartphone OSMarket Share 80.0% 70.0% 60.0% Android 50.0% iOS Blackberry 40.0% Symbian 30.0% Windows 20.0% Linux 10.0% Others 0.0% Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
- 7. Mobile Phone Industry India
- 8. Industry Overview In 2012, • Market size in units 80000 – 100000 mobile phones per month • In value : Rs 6 – 8 billion per annum • Market is mainly dominated by 3 key brands while Samsung is the market leader. Brand % Samsung 21% Nokia 20% Apple 8% ZTE 4% Others 47% • Within Past 2 – 3 years Samsung became the market leader taking the pole position from Nokia
- 9. • Market ismainly segmented by the income level while lower income group contributes around 70% of total revenue • Market penetration in north and east is around 10% and expects to boost up with the government heavy investment on infrastructure in those areas. • Income level growth , technology development & population growth are the key demand driven factors in any market segment. • With the new rules and regulations which are introduced by TRC it is expected to shrink gray market while the demand for branded phones increase. • Recent Change of tariff structure and the increase of government investment on technology results for favorable future of mobile industry. North and East Potential Penetration Under Market Penetration Under North & East 693169 72200 620979 Penetrati Potential on Market 45% 50% Penetrati on 5%
- 10. Target Market BasicUsers The cell phone is just another communication device for these consumers. Mobirati Users The mobile generation that has grown up with cell phones and can't imagine life without them. Cell phones are a central part of their everyday lives. Paragmatic Adopters Cell phones emerged in their adult years and they're now learning to use them for things other than talking. Cell phones are more a part of their everyday life than ever before, but still mainly functional. Social Connectors Communication is central to their lives and cell phones allow them to keep up to date with friends and social events. The mobile device is the bridge to their social world. Paragmatic Adopters Social Connectors
- 11. Segmentation Strategy Potential Market Lower income Top Income Middle Income group Group Group Features Base Features Base Features Base
- 12. Customer Buying Behavior: Basic Users Lower and Middle Income Top Tier Groups 3G Features Camera Law & Middle Top Tier Office Price Wi-Fi BUY
- 13. Research in MotionHistory • Founded 1984 ‡ • 1996 - Introduces the RIM 900Inter@ctivePager ‡ • 1999 - Launches BlackBerry service ‡ • 2004 - 1 million BlackBerry subscribers ‡ • 2007 - 10 million subscribers ‡ • 2010 Revenue: $14.9 billion ‡ • 2010 Net Income: $3.46 billion
- 14. BlackBerry • Started outas a two-way radio pager called the Inter@ctive Pager in the research labs of RIM in 1996 • Pager was the fist pocket-sized two-way messaging pager and the predecessor to the BlackBerry • First phone-capable device was introduced in 2004 as the BlackBerry 7100t
- 15. Push technology &QWERTY • Email services serves as one of the main differentiating points • Push technology allows emails to automatically show up on the device without the lag time of having to refresh a web- browser to view new emails. • RIM designed and patented the now ubiquitous QWERTY keyboard
- 16. Purpose and Featuresof RIM • Providing access to communication and important information all across the globe • Build industry standards and improve performance of internationally mobile companies and their personnel. • BB smartphones have supports for Email, text, IM, Social networks, Web access, GPS etc. • Many offerings with variation in features • International support on CANTEL and BellSouth network as well as nationwide network coverage on Ericsson’s Mobitex. • Addon BlackBerry Enterprise Server for centralized administration ands support for laptop users
- 17. RIM vs. Googlevs. Apple vs. Twitter Followers Following
- 18. RIM in News KeithPardy (CMO) quit before launch of Playbook 2011 Q4: - Shares Price plunged 11%
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- 20. Blackberry - Evolution •The RIM 850 was the first device which became popular. It had a six line monochrome display and could send messages, emails and had calenders, address book, task list, calculator and alarm function • The company followed it up with the first Blackberry branded device, the 5810. It had a bigger monochrome screen and also allowed voice calls with the use of an external headphone and microphone • Blackberry 6710 was the first proper phone from the company with am inbuilt microphone and speaker
- 21. Blackberry Evolution –Contd. • The 7210 was the first smartphone from the company. It had a colour screen and had a browser on board for internet surfing. It could also open MS Word, Excel and Powerpoint files. • The 7100t launched during the was a slimmed down version aimed at the consumer market • The Pearl 8100 was the first to include a camera and media player applications • The 8800 was the first to include a GPS allowing making real time mapping a possibility.
- 22. Blackberry Evolution –Contd. • The Curve 8300 was launched with a front facing camera which allowed video calls and also Wifi • Bold 9000 started offering expandable memory for data use and a large colour display • Joined the touchscreen bandwagon with the Storm. It had no physical keypad. • The Playbook tablet was launched to meet the growing demand for tablets.
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- 24. • BBM encouragedthe entry of younger customers and the prepaid segment into BlackBerry services in India. • BlackBerry Services – historically targeted at the corporate market – had a proven track record in commanding high ARPUs. • With BBM, the impact is a lot more personal as compared to facebook and twitter with a one-on- one and group communication possible. • They introduced the single interface point where multiple applications (like FB, Twitter) are integrated to enhance user experience.
- 25. • To tapinto the young ‘BlackBerry Boys' generation, RIM had launched models such as Curve 8520. • Although pre-paid commanded the lowest ARPU, research found that the youth liked to be seen as affluent, tech-savvy and constantly in touch with friends. • Vodafone decided to tap into BBM’s attraction as a free alternative to more expensive text messaging and introduced pre-paid BlackBerry Services. • The add-ons include colourful skins and packaging, while services were being added o at the back end for the ‘always connected' generation.
- 26. • Vodafone's Rs5 per day or Rs 129 per month BlackBerry Messenger plan were introduced to attract more youngsters. • The objective of the campaign was to increase the appeal of BlackBerry services on Vodafone to a larger audience with special emphasis on the younger generation. • Results: Vodafone increased its share of BlackBerry users by 96%, nearly double its 50% target and within the first four months of the campaign it signed up nearly 154,000 additional subscribers (of which 35,000 were pre-paid) • Its post-paid customer base grew 74% from 160,000 pre-campaign to 279,000 post-campaign
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- 29. Strategic Issues • OperatingPerformance Declined • Lost Product Innovation • Changing Business Environment • Increasing Competition
- 30. Operating Performance Declined NewSubscribers Per Quarter turn down New Subscribers Added Per Unit Sold continue drop Device Gross Margin Percentage get thinner Revenue Per BlackBerry Device Sold declined
- 31. Lost Product innovation FullQwerty Touch Screen Playbook - Classical BB Strength - Response to iphone - Response to iPad2
- 32. Changing Environment MobileTrends 1/3rd of Americans access mobile browser and socialnetworking sites on mobile phones Mobile Application Touch User Experience Web Trends: Email Social Media Traditional portals, Online leisure Activities Changing Customers Enterprise Mass market Shifting Age Profile Twitter Facebook
- 33. Increasing Competition beat oldcompetitor or address new comer
- 34. Increasing Competition -cont`dMobile App Store
- 35. Strategic Issues Analysis RIM Operating Innovation Competition Environment Performance Device User Subscriber Talent New Trend Customer Margin Experience
- 36. Root Cause Analysis •Root Causes – Shift Ageing Mobile activities – Customer Satisfaction – Web experience shift Email to Social mobile App – Touch screen pricing strategy – Recruit talent corp culture
- 37. Sales and marketshare Gartner’s figures shows BlackBerry sales which is increasing until the second half of 2010. This year, BlackBerry sales seem to be in free fall.
- 38. Market Share ofHandset Makers (Worldwide)
- 39. Market Share ofSmartphone (Worldwide)
- 40. Share of mobileweb browsing • A smart phone is a mobile powerhouse, and many are used to browse the web- BlackBerry devices were used for just over 1% of mobile web browsing in the US in July 2012.