Cell Phone Research Paper

Cell Phone Research Paper-19
Here are some new cell phone models currently in market today: Internal economies of scale are economies made within a company as a result of mass production.So as a company produces more and more products and services to consumers, the average cost begins to fall so the companies should focus on the following six factors: The external economies are made outside of the company as a result of its location.

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Companies also want to spread their companies out through franchises, because more offices mean more visibility in drawing consumers in to buying their products and services. Following the recent Sprint/Nextel merger, only four firms actually control 80% of the current market.

Since start-up costs for a cell phone service provider are extremely high, the threat of new entrants is low.

Here are the main factors of competitive rivalry: Verizon is the number one largest company having 38.9 million U. The following companies merged resulting in only four companies; Sprint merged with Nextel, and Cingular bought AT&T.

Below are financial highlights showing how well the four cell phone service companies that are occupying the market are faring.

This makes the market very competitive and large companies that have big economies of scale provide a highly automated service to a large number of customers, and have the financial resources required in building and maintaining a large network of communications devices.

Smaller companies can also compete, but only in small markets or by provide specialty services.

A valuable capital in the cell phone industry is the consumers because revenue and profits depends on them who buy the companies’ cell phones.

New products are introduced continually, technology evolves on a daily basis, and customers are eager to become part of the future of a wireless society.

Most applications are large, between 40 KB to 550KB, and with applications ever growing-in-size and very-more-appealing, better multimedia and larger memory in the phones, and better network capabilities for economic high-speed data access.

Video Streaming is when videos are sent over a wireless network to a cell phone.


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