Mobile Phone Industry In A Nut Shell

Essay by PaperNerd ContributorUniversity, Master's September 2001

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Business Strategy Research Report: Industry Of Choice: Mobile Communication No business, be it a sole trading business or corporate company, operates within a vacuum. Any organisation, despite its size, is surrounded by laws and liabilities, customers and competitors, pressure groups and government bodies. These are part and parcel of the marketing environment in which the organisation must operate and since business strategy and marketing are at the junction between the organisation and the outside world, dealing with this ever changing environment is at the fore front of any organisation's success. This means that the strategic position of any firm should be viewed as existing within a very rapidly changing and complex environment. These external conditions must be constantly assessed and appropriately responded to.

The above stands true in any modern day industry and a perfect example in demonstrating these ideas is the industry of mobile telecommunication. Managers within this industry are continually faced with day to day decisions that will determine the overall strategy of the company.

The following review sets to evaluate the environmental conditions and strategic consequences of the mobile telecommunication market in the UK.

The birth of the mobile telecommunications market took place in 1982 when the UK government set aside a band of radio frequencies for cellular communications and awarded a total of five licenses to the network providers. These are presently recognised as, BT Cellnet, Vodafone, Orange, and One2One. Within this industry, in effect two markets exist. One of network provision, the other of handset manufacturers, and for the purpose of this review, both will be evaluated. The reason for this lies in the fact that the environmental effects for each go hand in hand and are one and the same thing. The major players in the production of cellular handsets include, Nokia, Motorola,