Introduction
Smartphones seem to be a revolutionary movement in the 21st century in terms of sales; most global brands are coming up with new mobile devices each and every day. This innovation trend targets the working class persons; global brands like iPhone and Samsung products targets the persons in the office. As a result of this target market, the companies do set high prices on these products. Hence, it is hard for the middle-class and lower class persons to afford it. I am interested in launching a smartphone in the African market, my specific country of choice is Kenya. This is an economic zone that is characterized with plenty of middle-income earners and plenty of lower class citizens in terms of income. The name of my smartphone is ‘smatfon’. A brief description about the unique features of this phone is that, it has the ability to keep the battery power for quite a long time. Another great description of this product is that, it is easy and efficient to use by both the literate and illiterate person within the society. The target market is characterized by individuals who are in need of smartphones. The high demand prompted me to come up with this unique product innovation.
The procedural permission grant is essential to give me the amnesty and freedom to go on with this worthy cause. This calls for an imperative formal approach to my tutor in order to request for the necessary permission documentation that will allow me to progress with this launch of the new smartphone in the market. There are all the reasons necessary that will allow me to advance with this project.
Literature Review
Smartphone is simply a phone that is characterized by features such as internet access, windows mobile, android operating features and other computer processing features (Putzer & Park, 2010). It is unique in it its functionality in that; it comes with additional functionality other than just the normal calling and texting features. It has the ability to check mails, play videos, surf the internet, and display high definition photos. A professional combination of personal digital assistant and a functional cell phone, a given smartphone has the ability to run operating system as well as run a computer program, it also allows effective downloads of software’s that can run easily on the phone (Michael, 2011). Smartphones and devices such as laptops can be integrated into teaching and allowed to be used in classrooms at any given time (Murray, 2011). As the educators and basic technocrats in the educational sector, understanding the merits and technical drawbacks that are related to the mobile devices would be of great impact to the future well-being of education. In terms of expendability, smartphones offer an application that allows this operation. It is not only the smartphone users who can be able to download applications from app store or the android market, they can also be able to develop apps without necessarily computing the background. Additionally, apart from the simplicity that comes along with custom-making apps, there is an opportunity for developing an augmented system and augmented reality which is yet to be explored by new innovators (Helal et al. 2003). There is so much hope that the augmented reality will grow up to be desirable heights in the future of business as well as in the educational sector. Smartphones own the merit of successful application, and integration of smartphones in the classroom zone is of milestone advancement.
Smartphones offer great advantage due to its ability to connect with wireless mobility depending on the size of a smartphone. The onset of wireless connectivity through Wi-Fi, 3G or GPRS allows smartphone users to unlimited internet services including even surfing through the YouTube. A variety of tasks can be performed through this simple connectivity such as downloading movie, eBooks, and any other free downloadable stuff. Smartphones offer a variety of internet usages and applicability’s; this is exemplary through the advantages that come along with it. It is essential to learn and consider that, most smartphones that are being released by various companies’ targets the working class population with the various variety of releases into the market scene. Similarly, the competitors within the market offer them stiff advantage by producing smartphones that target the broader market population. This is characteristic in its various differences in terms of the smartphones features that are being released into the market by these market producers. However, there is a great gap in terms of market orientation, most of the world class smartphones manufacturers concentrate on the American, Europe, and Asian markets. This leaves the African market with the analog type of phones which lacks the basic advantage in terms of usage and applicability. This sabotages the gross-efficiency in terms of offering milestone advantages to the smartphone users in the African market. It is also significant to note that smartphone development and usage matters a lot to the general users of smartphones.
Microeconomic Analysis
Demand and Supply of Smartphones in Kenya
There is increased demand for smartphones in the African continent and Kenya in particular. This high demand for smartphones is due to the basic sense that most of the renowned world brands producers of smartphones have not extended their territorial margins towards the African continent, they rely basically on the esteemed customers from other continents. Kenya is a developing nation, therefore, obtaining a solid market for smartphones will be easier. There are plenty of willing customers who are in need of efficient smartphones that they can use for their daily needs. The educational sector is in need of specialized devices that they can use for various uses and applications. The introduction of e-learning in this type of market will be aided by the introduction of smartphones. The health sector is also suffering from advancement in terms of technologically feasible devices. Therefore, introducing smartphones in these market destinations will aid service provision.
The supply of smartphones in this market segment is generally low. There are a few suppliers that work to ensure that every consumer acquires a smartphone and applies it on their daily usages and applications. Generally, the supply of smartphones in this economic zone is approximately 27%, this is significantly low considering the extent at which smartphones are distributed in the global market.
Nature of Competition
Apparently, there are only a few competitors in this market segment who supply smartphones. Some of the few companies available in this market include techno, LG, and Huawei technologies. They supply their products at a relatively higher price compared to the product that I will be launching. Therefore, the competition that exists in this market can generally be termed as smooth or friendly. There is no market leader, this means that the competition is generally perfectly competitive. This means that that is free entry and free exit out of the market. This is due to the nature of competition that is prevalent in this market. In a broader analysis of the nature of competition in this market, it can be arguably stated that most individuals within the market are not exposed to the range of smartphones that are available in the market.
Market Structure
The nature of the Kenyan market structure is perfectively competitive. This offers plenty pf advantages to my new product given that the price of the product is subsidized. As opposed to other competitors within the market, my product is privileged with some of the remarkable specs that matches that of the competitors but comes at a relatively lower price. It is also essential to note that a perfectly competitive market allows every player to play stiff market dominance.
Production factors and costs
The production costs are relatively lower. This is due to the cheap availability of raw materials that facilitate cheap production costs. The labor cost is also relatively low and is easily acquirable. This is due to the plenty of stationary labor that is unutilized. Generally, the gross production costs and related costs are affordable and allows the price of the smartphone to be waived by a huge margin.
Government intervention
There is a variety of government rules and regulations that have been put in place to galvanize the sobriety of every investor operating within the economy. It is essential to learn and consider that the new market approach will be faced will plenty of rules and regulations that work hand in hand to ensure that there is a smooth operation of the business within the economy.
Conclusions
Launching the new smartphone in the new market segment brings about utmost advantages to the welfare of this process. It is worth noting that the evaluation of the microeconomic analysis tools within the new economy brings about perfect market study of a new product destination. The availability of huge customer base within the Kenyan economy is classical and allows huge market power dominance within this economy. It is also essential to note that, the new market destination is characterized by inappropriateness of the uncivilized market base.
Conclusively, the gross expected sales of the smartphone in the Kenyan market is anticipated to rise above those of the market dominants. The sales capacity will determine the rate at which the product will take place in the market. Sales ratio will also determine the potential thrift at which the company will take place in the Kenyan market. It is also essential to note developing appropriate customer relations will determine the longevity of operations in this market.
Recommendations
One of the prime recommendations towards establishing perfect product launch is to use a promotional strategy. This will influence plenty of individuals to fall into being brand victims hence winning the market
The second recommendation is to leverage the price as not to discriminate customers. This will attract wider customer base. This will ensure that every single individual within the market buys the smartphone.
The third recommendation is to ensure that every single customer gets perfect satisfaction from the smartphone being delivered into these markets.
References
Helal, S, Giraldo, C, Kaddoura, Y & Mann, W. (2003). Smartphone Based Cognitive Assistant. The Labarotory for Ubuitigous Computing and Interaction.
Michael, S. (2011). Application of Smartphone Technology in the Management and Treatment of Mental Illness. Master of Public Health, University of Pittsburg.
