Drivers of Competition in the Cell Phone Industry

Drivers of Competition in the Cell Phone Industry
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Drivers of Competition in the Cell Phone Industry
Introduction
The 21st century is characterized by globalization and technological advancements that have had an immense impact on operations of businesses. The turbulence brought into the business environment has created a myriad of challenges for contemporary leaders. Addressing the challenges in today’s business environment can be the difference between success and failure. As businesses try to survive and grow their market shares, they engage in various competitive measures. The cell phone industry, in particular, is characterized by high competition as each firm strives to try to increase or maintain its market share. In the industry, the inability to compete effectively can mean the end of a firm’s operations. A firm with advanced technological advancement can easily outcompete those with inferior capabilities. However, given that new technologies are developed regularly, a firm’s market share is not guaranteed. Stiff competition is thus a feature that characterizes the cell phone industry. Companies employ a variety of measures to maintain its existing customer base and capture new ones. This paper proposes a research that would seek to find out drivers of competition in the industry. The research would provide key insights into how competition occurs in the cell phone industry.
Background
Competition is inevitable in any business environment. According to Chen (2015), competition is the rivalry that occurs among organizations as they try to achieve goals such as increasing market share, profits, or sales volume through the variation of the elements of the marketing mix: promotion, distribution, product, and price. Organizations engage in competition as they try to satisfy the needs of the customer. Chen (2015) points out that competition motivates organizations to do better than their rivals and therefore the consumer can benefit through more choices. The way organizations respond to challenges in the environment and the corresponding reactions of competitors help in creating a variety of choices for consumers. Competition thus plays an instrumental role in any industry as it drives innovation and widens the choice consumers have.
Organizations today are operating in an increasingly competitive and turbulent environment. As informed by Lee, Olson, and Trimi (2012), the turbulence in today’s environment is due to a variety of national, regional, global, as well as industry-specific factors. The globalization that characterizes modern business environment means that a ripple in one part of the world may affect operations in another. As pointed out by Lee, Olson, and Trimi (2012), the global marketplace is marred by numerous, unpredictable, and dynamic changes. In a turbulent market, the customers are in constant search for new services and products and their needs are wide-ranging (Tsai & Yang, 2013). As a result of the dynamic change in the needs of the customers, it organizations have to creatively modify their operations and products and services. Failure to make such adjustments means that a firm is not competing effectively. Tsai and Yang (20...