There are different perspectives on the effective response of technology-based industries, such as the mobile phone sector, towards the economic crisis. One perspective calls for cost effectiveness through the restructuring of the cost structure of cell phone companies (“Mobile phone,” 2009). The implication is to focus only on mobile phone features that consumers need and expect from new phones. This could also mean going back but repackaging the basics.
Another perspective calls for innovation even in times of crisis because the mobile phone market is matured and sophisticated and would likely purchase extraordinary and unique innovations (Plowright, 2009). The last perspective integrates both the concepts of cost effectiveness and disruptive or transformative innovation. In the short-term, the initial response of mobile phone companies to the impact of the economic crisis would be to cut back on cost. However, in the medium to long-term, mobile phone companies would think about weaknesses in their business models.
The result would likely support organizational restructuring or reinvention that supports innovative product development. (“Why an economic crisis,” 2008) The integrative approach appears to align better with changes in market demand and mobile phone company’s concerns. Understanding the factors affecting mobile phone companies and consumers feeling the economic
Need essay sample on "Finance business"? We will write a custom essay sample specifically for you for only $ 13.90/page
Investigating the problem of how to develop and introduce a new mobile phone to the market ensures targeted marketing outcomes. The investigation seeks to achieve a number of objectives. 1. To determine the factors affecting changes in consumer demand from a new cell phone. 2. To determine the effective market strategy response of companies to the economic crisis and changes in consumer demand. 3. To determine the requirements of introducing a new mobile phone to the market. The research would provide answers to the following questions. 1. What product features would be included in the new mobile phone?
2. What would be the pricing strategy for the new product? 3. How would the company distribute the new cell phone? 4. How would the company promote the new cell phone? References Datamonitor. (2008). Mobile phones: Global industry guide. Retrieved March 8, 2009, from http://www. infoedge. com/product_type. asp? product=DO-4965 Mobile phone market to shrink in 2009. (2009, January 23). Reuters. Retrieved March 8, 2009, from http://www. reuters. com/article/technologyNews/idUSTRE50M1N820090123
Plowright, A. (2009). Mobile phone showcase reveals upcoming trends. Retrieved March 8, 2009, from http://www.expatica. com/es/finance_business/business/Mobile-phone-showcase-reveals-upcoming-trends_13681. html? ppager=0 Why an economic crisis could be the right time for companies to engage in ‘disruptive innovation’. (2008). [email protected] Retrieved March 8, 2009, from http://knowledge. wharton. upenn. edu/article. cfm? articleid=2086 Worldwide mobile phone market declines by 12. 6% in fourth quarter, more challenges to come says IDC. (2009, February 4). BusinessWire. Retrieved March 8, 2009, http://www. businesswire. com/portal/site/home/permalink/? ndmViewId=news_view&newsId=20090204005932&newsLang=en