Phone Brands Comparison

INTRODUCTORY PARAGRAPH

The purpose of this report is to introduce the concept for a new smart phone in Canada. The report will

first begin with an analysis of the smart phone industry. Then, the new smart phone will be compared

to its three existing competitors based on the marketing mix elements - positioning, product, price,

promotion and distribution. Finally, the report will conclude on why the purposed smart phone will

outperform its competitors.

ENVIRONMENTAL SUMMARY

As of March 2011, there were 24.7 million wireless phone subscribers in Canada (Canada Wireless

Telecommunication Association, 2011). Of this population, 86% were subscribers of smart phones. The

smart phone sector has become the fastest growing sector of all wireless devices in Canada. According to

a recent survey conducted by Quorus Consulting Group, the largest population of smart phone users are

between the ages of 18 and 34 years old in which 48% of this population owns a smart phone (2011).

The threat of new entrant in this market is low as large capital investments are required to conduct

research and development (Shahneil.com, 2011). Thus, most competitors in the smart phone market such

as Samsung are existing producers of cellular phones who are able to take advantage of the economies of

scale they have developed. However, the deregulation in the telecommunication industry in the last few

years has opened the market for some new, smaller entrants.

Tablets, laptops and PDAs are close substitutes of smart phones as they perform similar functions.

Substitutes of smart phones are more attractive as they provide larger screens and a keyboard which is

more user-friendly. On the contrary, these devices are heavy to carry which makes it difficult to use on

the go.

The smart phone industry is dominated by five large players: Nokia, Apple, RIM, Samsung and HTC

which all currently owns more than 10% of the market (Gartner, 2011). As it is difficult to differentiate

themselves based on the hardware component, many smart phone producers are relying on applications,

low prices and brand name as its positioning strategy.

Suppliers of smart phone are ample and fragmented (Shahneil.com, 2011). This makes it easy for smart

phone producers to seek out less expensive parts to lower the price of their product.

Users of smart phone have significant bargaining power given the large supply of smart phones in the

market. As users become more knowledgeable about the capability of smart phones, they demand more

functions and greater user experience.

PRODUCT PROFILE

In order to meet the consumers' demand for greater user experience and better functions on their smart

phones, our team has come up with the following concept for a new smart phone to be launched in the

market.

Positioning/Competitive Advantage

RIM - This company is infamous for its innovative and award-winning BlackBerry product line. The

BlackBerry is known for its secure network and business applications and is used by many business

professionals (RIM, 2011).

HTC - In 2009, the company began to position its product line of smart phones which puts you, the

consumer, as the center of attention. HTC targets mostly young adults who are searching for the latest

entertainment features on a smart phone (HTC, 2011).

Apple - The iPhone differentiates itself from competitors by providing diverse and functional

applications such as games, references, GPS navigation and social networking. The iPhone has changed

consumers' perception of the mobile phone from a device that facilitates talk to a pocket PC for accessing

digital content (Cuneo, 2008).

Concept - This smart phone will be targeting a young population between the ages of 18 and 34 who are

experienced users of smart phone. This smart phone will be positioned as the "phone you must have if

you consider yourself an experienced smart phone user" as it features many sophisticated functions that

no other smart phones currently have and the most advanced technology.

Product

RIM - Business professionals are attracted to the phone's other work-friendly features such as the ability

to synchronize their email and calendar. Also, BlackBerry is able to combine users' email, calendar,

contacts and important data all in one easy-to-access place and allows its users to edit Microsoft office

documents right on their phone. Users can conveniently and promptly reply to work e-mails by using

BlackBerry's QWERTY keyboard (RIM, 2011).

HTC - HTC smart phones run Android OS that is compatible with Adobe Flash operated web sites giving

HTC phones a competitive edge over its main rival iPhone and other smart phones. The HTC phones also

offer the first ever 3D technology with no 3D glass requirement and the first ever 4G technology as well

as all other features