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India: The Second Largest Mobile Communication Market Globally


Task: Factors that led to India being the Second Largest Mobile Communication Market Globally?


The mobile communication assignment focuses on India’s rapidly expanding mobile communication market and factors driving the industry. India is the second most popular nation globally, which also makes the country the most attractive for every industry simply due to the sheer number of consumers. It is also the second-fastest developing economy which means more people can afford to spend their surplus earnings on purchasing the latest gadgets, equipment and other supplies (Bhagwati et al., 2013). It makes India among the most attractive markets for any industry and business, but the digital communication and marketing industry has experienced the largest growth in recent years.

Contribution of the SME Cluster to the Industry
Today India is the largest and most preferred SEO and SME market due to the high quality as well as affordable services being offered by companies in the market (Anon., 2013). It has also given rise to the consumer and market players needing to invest in the latest technologies to keep up to date with consumer requirements and needs. As per this mobile communication, assignment smartphone have dominated the communication industry and become a necessity for every individual linked to the Indian economy, and the industry has experienced exceptional growth and development in the past decade.

Important Companies in the Industry
The mobile communication assignment focuses on industry drivers of India, which are broken into two main areas, including the telecom companies and mobile gadget manufacturers and retailers (Desai, 2006). The stakeholders are independent contributors to the industry and concentrate on different aspects of the industry but work closely together to deliver high-quality services to the consumer.

Telecom Companies
As per the mobile communication assignment, the telecom companies are the stakeholders who are responsible for providing connectivity to the consumer, which comes in the form of allocation of SIM cards and fixed lines to the subscribers. The telecom industry in India is experiencing a steadily growing number in subscriptions over the years but has experienced a stagnation of subscriptions in recent years due to most subscribers retaining their connections to the network. Statistics and analysis show that telecom subscriptions had grown from just over 200 million in 2007 to 1 billion subscriptions in 2014.

Constraints Facing the Industry
While preparing this mobile communication assignment, future statistics predicted a slow down as the number of new subscribers reduces (Kohli-Khandekar, 2008). Either way, there is still a high potential for expansion in the industry due to many individuals having multiple subscriptions to a different telecom service provider which still leaves a large proportion of Indian citizens still not connected to the communication grid.

The Digital Communication Gadget Industry
The second important area identified in this mobile communication assignment within the communication industry is the development, manufacture and maintenance of the digital communication gadgets required by the consumers to remain connected to the grid. Too many smartphones have grown to become the preferred gadget of choice for most telecom consumers. Unlike the telecom industry, which has been noted to peak off at around 1 billion subscriptions, the mobile and smartphone industry continues to record huge growth due to the ever-changing gadget specifications.

General Trends and Forecast identified in the mobile communication assignment.
Today the consumer is being forced to replace their smartphone every few years as they grow outdated and unsupported by many applications that depend on the internet to keep the consumer securely connected to the grid (Barksdale, 2011). It has resulted in the smartphone industry constantly growing and experiencing a larger consumer market develops each year. The consumer market is constantly increasing as more people seek smartphone connectivity while older users seek upgrades to newer and more powerful gadgets.

Potter 5 Forces Analysis for this mobile communication assignment
With the mobile communication assignment identifying that the telecom and smartphone industries both experiencing exceptional growth in India during the past decade, it’s important to perform porter 5 forces analysis to determine important forces that dictate the industry both now and in the future (Porter, 2008).

Industry rivalry
In this mobile communication assignment, it has been identified that the telecom industry has experienced intense competition during the past two decades where companies have constantly struggled to deliver high-quality services to their consumers. The rivalry has resulted in the industries needing to deliver higher quality services to the consumer at more affordable prices. The telecom industry in India still experiences considerable competition among different players who struggle to deliver unique services to their customers so as to retain their confidence and keep them on their networks. The rivalry identified in this mobile communication assignment is also experienced among the communication gadget brands which are constantly offering better products to their consumers so as to win their confidence and keep them returning to upgrade their gadgets with the same brands.

Supplier bargaining power
The supplier has also been forced to consider offering better prices for their products to retain their competitive edge and avoid experiencing stock backlogs. As the product specifications constantly change, the consumer is now concentrating on securing the latest gadgets which allow them to retain the gadgets for the longest time before needing replacement. Suppliers, therefore, require ensuring they develop products which offer those specifications and at competitive prices so as to retain the consumer’s interest in the products.

Consumer bargaining power
The mobile communication assignment also identified that the 21st century has also seen a larger number of suppliers entering every industry, which has also resulted in the consumer developing bargaining leverage. It has happened due to the consumer having a larger verity of products to select from, which has resulted in them making demands with regard to the products specifications and terms of purchase. It has resulted in prices reducing as well as the manufactures offering higher quality products to keep their customers satisfied.

Threats from new entrants
The telecom industry players have no threats to be worried about due to the Indian telecom companies actually dominating the market and even expanding to foreign markets due to cheap service cost. On the other hand, this mobile communication assignment outlines that digital gadget industry is constantly under threat from competitors who are in a constant struggle to offer better product specifications with the hope of capitalizing on the market.

Threats from substitutes
Another major threat facing the Indian smartphone industry comes from Chinese smartphones which are currently flooding the Indian market and left no space for Indian smartphone developer. It has resulted in seriously damaging the Indian smartphone manufacturing industry which has grown purely dependent on foreign smartphone brands. China has grown to become the largest manufacturer of smartphones due to the cheap labour and materials that has resulted in all major brands turning to China as their manufacturing solution.

While India is still the 2nd largest telecom and digital communication gadget market, there are still areas the industry can expand. It’s important for industry players to carefully analyze the industry and determine suitable expansion areas which will help the stakeholder’s benefits from investments in the industry. As more individuals get connected to the Indian communication network, the demand for better communication facilities will continue increasing (McGrath, 2013). In this mobile communication assignment, it was affirmed that the entire industry is carefully monitored and analyzed as it will help all stakeholders develop a clearer picture of the current situation so as to help them benefit in the future.

Anon., (2013) The Major Outsourcing Locations. In: Outsourcing to India: The Offshore Advantage. London: Springer Science & Business Media, p. 105.

Barksdale, P., (2011) DigiTools: Communication, Information, and Technology Skills. 3rd ed. Mason: Cengage Learning.

Bhagwati, J., Bhagwati, J. & Panagariya, A., (2013) How Growth Matters: How Economic Growth in India Reduced Poverty and the Lessons for Other Developing Countries. s.l.:PublicAffairs.

Desai, A., (2006) India's Telecommunications Industry: History, Analysis, Diagnosis. s.l.:SAGE Publications.

Kohli-Khandekar, V., (2008) The Indian Media Business. 3rd ed. New Delhi: SAGE Publications India.

McGrath, R., (2013) The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business. s.l.:Harvard Business Press.

Porter, K., (2008) Competitive Strategy: Techniques for Analyzing Industries and Competitorsmobile communication assignment. New York: Simon and Schuster.


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