Price collusion in oligopolies

Price collusion in oligopolies   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  An oligopoly market exists when a few large firms dominate the industry. This form of market structure lies in between the realms of the unattainable structure of Perfect Competition to the structure of Monopoly. Each firm competes in order to maximise its market share. Oligopolies are defined as per their behavioural aspects rather than their market structure. As a result oligopolies are characterised upon two fundamentals; high barriers to entry and interdependence. Even though each firm competes with one another, each firm is still tied with each other, in the sense that each firm is interdependent. When faced upon decisions, the firm must take into consideration the likely reaction of rival firms, as one wrong move can end with a devastating consequence; the loss of market share. Incumbent firms are protected by barriers to entry; however each industry varies in terms of contestability. The goods and services that firms produce within an oligop oly are differentiated, in the sense that similar goods vary in terms of its branding, quality and after-sales services etc. A few good examples of firms competing in oligopolistic markets are the car industry, supermarket chains and banks etc.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Oligopolies tend to behave either competitively or collusively. In accordance with the kinked demand curve theory, homogeneous oligopolies are fairly restricted in terms of price competition, as shown by the following diagram. Each firm must take into account the reactions of rivals; hence if a firm decided to raise prices, with the hope of gaining extra profits, from point P1 to P2. Other firms anticipate this increase, therefore keep their prices untouched. Quantity sold would plunge from point Q1 to Q2. This fall in sales is greater than the increase in price, and so leads to an overall fall in revenue; hence the elastic demand curve (curve A). However if this firm chose as an alternative, to lower its prices from point P1 to P3, other firms would follow suit, with the intentions of not losing market share to its rival. Consequently quantity sold would only increase from point Q1 to Q3. The fall in price would have to be larger for it to accommodate the increase in sales, hence the inelastic demand curve (curve B). Again this decision would result in a reduction in revenue, bearing in mind a fall in market share. Thus firms are reluctant to change prices due to the effects mentioned. Therefore, price stability is imposed under oligopoly markets; in turn firms focus on aspects of non-price competition. Such practices may include extra after-sales services, longer opening times, extended warranties and extensive advertising campaigns etc. Non-price competition would therefore shift the demand curve or the firm successfully makes the price elasticity of demand for the product less elastic, thus developing brand loyalty amongst consumers.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Price/non-price competition involves firms behaving interdependently. Seeking to eliminate market uncertainty is a key desire for a market dominated by a few large firms. Thus businesses are keen to collude with competitors to reduce the effects of interdependence, either collude openly (formal agreements), or tacitly (informally under the radar). Formal collusive agreements bring forth the formation of a cartel. The advantages of such cartels, is that firms are able to achieve joint profit maximisation. Each member of the cartel is given an output quota usually depending upon each firms market share, which as a whole will maximise the cartels profits at the profit maximising price. Cartels therefore act as if they were a monopoly, taking control of the whole industry, whereby it is able to restrict output and raise prices (disadvantages of a monopoly structure). Consumer surplus is restricted and producer sovereignty exploited. As an assumption, there are a total of five firms in the industry, each agreed to be a member of the cartel. For the members to achieve joint profit maximisation, the cartel thus has to produce at its profit maximising level at point where marginal costs (MC) equals marginal revenue (MR). Thus the cartel, therefore the industry produces 4000 units which are then sold at the price of  £6. Assuming that each firm shares an equal amount of the market, for that reason each firm is given an output quota of 800 units. By analysing each firm independently (figure 3), the quota of 800 units does not lie at their profit maximising level. For this reason, the firm is likely to cheat, maybe undercut the cartel price or increase output to maximise its utility. Assuming the firm agrees not to change the price, for the firm to maximise its profits, it would have to increase output to 2400 units at the point where the cartels price (MR) equals the firms MC curve. At the cartel output, it would ac hieve revenue of  £4800. By increasing output to 2400 units it can boost revenue to  £14400; a good 200% increase in revenue. This would only occur if the firm can control total market share, taking the other members out of the equation. In turn if the firm wished to profit maximise using its own curves, it would therefore sell 1600 units at a price of  £4 at where MC=MR. By undercutting the cartel price the firm can attract extra customers, therefore increase supernormal profits. Interestingly, other member firms are also likely to lower their prices in the midst of cheating, which could lead to a price war, eventually leading to the breakdown of the cartel.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  For the reasons mentioned above, i.e. cartels behaving as a monopoly and the breakdowns of the cartels can lead to increased price fluctuations; in the interests of consumers, cartels are deemed illegal in many countries including the UK. Cartels, being against the public interest, its in the interests of the Competition Commission and the Office of Fair Trading (OFT) to investigate such cartel behaviour and counteract the cartels intentions. Bearing in mind that cartels are against the public interest, there is one cartel being in favour of consumers and the economy as a whole. It is not formed by a group of member firms, but formed with member countries; OPEC (Organization of the Petroleum Exporting Countries). As stated, OPECs mission is to coordinate and unify the petroleum policies of Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital to those investing in the petroleum industry (OPEC, http://www.opec.org/home/ ). Assuming OPEC keeps to its mission, it is truthful to say that OPEC aims to strengthen the global economy, bringing price stability in the commodity market. However other firms caught with price fixing have not had the same treatment. Just recently the New York Times has published LCD makers fined $585 million for price fixing (New York Times, Published; November 13 2008, by Steve Lohr). LG Display, Sharp and Chunghwa Picture Tubes were investigated and pled guilty of fixing the price of their liquid crystal display panels and were fined a total of $585 million by the U.S. Justice Departments antitrust division.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The difficulties faced with open collusion, and the consequences (the Competition Commission can fine the firms involved in cartel behaviour 10% of their worldwide turnover), means that firms are often reluctant to form cartels, therefore take the chances to collude tacitly. There are a few methods of tacit collusion, the popular being Dominant-firm Price Leadership. In simple terms the dominant firm in the industry becomes the price leader, at which the other firms tactically follow the dominant firms price changes, yet also keeping a close eye on their rivals. There is some evidence linking the supermarket industry to this method of dominant-firm price leadership, whereby Tesco being the dominant of all supermarkets. As published by TNSGlobal, for the 12 weeks ending 1st November 2009 show that Tesco has grown its market share from 30.6% a year ago to 30.7% now. TNSGlobal claims that, Tescos growth rate of 4.7% year-on-year beats the market avera ge of 4.4% (TNSGlobal, www.tnsglobal.com ). Being the dominant in the industry, it therefore acts as a price setter, resulting in the other firms following the price changes. However this strategy has been a prime condition of Tesco (to control the market), up until the moment one of the supermarket firms cheats by undercutting the price and not following the price leadership strategy. This has been the case recently (from personal experiences), that Asda is the better value supermarket, and may be voted as the credit crunch climate favourite. Asdas main advantage for the consumer is that there are a wide range of discounted products, that even Tesco and other supermarkets cant match. Instead of the price leadership tactic, oligopolies may indulge in price parallelism, whereby each firms price movements are parallel with their rivals. Such a policy requires no dominant firm imposing price changes. Besides firms who dominate the industry being the price leader, firms may become a barometer of market conditions, whereby firms engage in the tactic of barometric price leadership. This form of approach unfolds when a firm can successfully anticipate future market conditions in the short run, applying their knowledge to price changes. Firms neither have to be dominating the industry nor be a large firm. Price changes thus reflect changes in market demand or supply, where the firm who predicts such changes in the market becomes the barometer in the industry in which fellow competitors follow. From such a policy, it is important to note that firms frequently switch between the roles of a price leader to a price follower. As a precaution, following firms may delay their price changes in order to be sure that the price changes by the barometer is consistent with the results obtained of the current market situation. Therefore a time lag may arise, or firms may decide that results are inc onsistent with the barometer, thus leave their price unchanged, undercutting the price leader. In the interest of each firm, costs may rise as a result of marker research, therefore in order to minimise the costs, firms may just follow the price changes of the price leader without undertaking research, in the hope that the barometer is correct about current or future market conditions. Firms may compete in terms of the Bertrand model. This model assumes that there are two firms in the industry (duopoly). Both firms aim for price stability in order to reduce menu costs. Hence both firms set their prices at where it would have been in a perfectly competitive market, usually making normal profit. This point refers to the Nash equilibrium. This ensures that neither firm can undercut the price, avoiding any price wars.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To conclude, it can be suggested that there is some correlation between the policies in which oligopolies compete at, and the contestability of the industry in which they operate in. A highly contestable market in which barriers to entry are low, pressurises firms to compete more aggressively, whereas if incumbent firms have successfully erected high barriers to entry, whether natural or man-made barriers; the industry becomes less contestable, providing incentives to collude to maintain market share. There is a high probability that the formation of cartels will inevitably lead to the breakdown of the cartel, for reasons of cheating. Price fixing or other forms of agreement never maximises each firms benefit. However, this statement only relates to the short term, but an agreement with other firms does reduce uncertainty, therefore benefiting firms in the long run to maintain supernormal profits. Member firms must find ways to restrict other membe rs from cheating on the cartel price. Therefore the profit loss incurred by deviating from the cartel should exceed the profit loss by remaining in the cartel. As shown by figure 3, this is difficult to achieve. Theoretically, it is easy to form a cartel when approached via the text-book assumptions. However in the real world, it is difficult without perfect information being available. Research suggests that, differences in product life cycles and fluctuations in demand create instability among agreements, which naturally fractures the cartel (Haltiwanger and Harrington (1991)). Collusion to mimic operations as a monopoly allows investment in research and development to be funded collectively via joint profit maximisation, benefiting consumers in the long run. In essence, firms who compete without any form of collusion or agreements, have greater scope to maximise personal utility, by developing brand loyalty among consumers, thus being able to successfully increase market share. T his would be the best policy to approach benefiting both the firms and the consumer, yet avoiding any government intervention. References Garner, E. (2009). Tesco Share Turnaround. Available: http://www.tnsglobal.com/_assets/files/worldpanel_marketshare_oct2009.pdf. Last accessed 03/12/2009. Haltiwanger, J. and J. Harrington (1991), The impact of cyclical demand movements on collusive behaviour, Rand Journal of Economics, 22:89- 106. Lohr, S. (2008) LCD makers fined $585 million for price fixing, New York Times, 13 November. Available: http://www.nytimes.com/2008/11/13/technology/13iht-13panel.17777580.html?_r=1scp=1sq=LCD%20makers%20fined%20%24585%20million%20for%20price%20fixingst=cse. Last accessed 03/12/2009 OPEC. (n.d.). OPECs Mission. Available: http://www.opec.org/home/ . Last accessed 02/12/2009.

Marketing – Right Choices

| Off Campus & Assignment Handling Services Division of Information Services Nathan Campus GRIFFITH UNIVERSITY QLD 4111 | ASSIGNMENT COVER SHEET Open Universities Australia | Student details| Name| Gokhan Aykut| Course| B. Comm| Unit details| Unit code| MKT 103| Unit name| Introduction To Marketing| Unit tutor| Kieth| Assessment Item details| Marketing Report| Due date| 20/02/2012| Word count| 2500| Extension granted| v? No ? Yes| Extension date| | Is this a resubmission? v? No ? Yes| Resubmission date| | ACADEMIC INTEGRITY DECLARATION Breaches of academic integrity (cheating, plagiarism, falsification of data, collusion) seriously compromise student learning, as well as the University’s assessment of the effectiveness of that learning and the academic quality of the University’s awards. 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(Gokhan Aykut) | Executive SummaryThe following report is the marketing plan for the new Nokia Lumia 910G for the global market for the financial year of 2012-2013. After many years of unsuccessful handsets which have lead to a decline in growth, this handset is designed to regain the market share globally and for Nokia to lead into a new generation of developing low cost handsets with high end features with the added benefit of showing to the world that Nokia is environmentally conscious and a proud ambassador for protecting our very fragile planet. The company’s mission statement Everyone has a need to communicate and share. Nokia helps fulfill these needs and we help people feel close to what matters. We focus on consumers by providing very human technology† * Commitment to deliver outstanding and innovated products to our customers. We seek to become the number one electronics company throughout the world. * Focused to maintain outstanding relationship with all of customers and distribution partners globally. By maintaining our strong relationship our aim is to become once again the number one handset manufacture globally.The marketing plan will focus on the smartphone and the current line of smartphones that Nokia has introduced, it will outlined the detailed of the current promotion and marketing campaigns used and how it could further better those campaigns. The target market that this handset will be focused on is generation Z in particular, 15-22 year old males and females. This generation is the trend setters of today and are ‘digital natives’, it will also analyse relevant factors with the company including, competitors, customers and SWOT analysis.Table Of Contents Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 Situation Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 Macro Environment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Political Legal Environment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 Technology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7-8 Competitor Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8-9 Consumer Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9-10 Internal Environment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 Sales Market Share†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 Brand Awareness†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 Promotional And Marketing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 11-12 SWOT Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13-14 Objectives†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 Target Market†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 Positioning Map†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 Marketing Mix Strategies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 18-20 Evaluation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 21 Implementation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 Introduction Nokia was first established in 1865 on the banks of Nokianvitra River in Finland by Fredrick Idestam.He would set up a wood pulp mill and produced paper, the original form of communication. It was later on were a merger took place with Finnish Rubber Works and Finnish Cable Works that gave birth to Nokia Corporation in 1965. The name of Nokia would be growing at a rapid rate, and eventually the company would be a major player for 31 network operators around the world. Nokia initially targeted low income people and first time mobile buyers, with the introduction of the 1100 series. Today the company has grown into the largest manufacturer and distributor of mobile phones.With the introduction of OVI (internet services for the Nokia Brand) in 2007, Nokia has now become a major player in the smart phone industry, and with its newly formed alliance with Microsoft Corporation and Windows Mobile, the sky is the limit for this iconic brand. Situational Analysis The major mobile handset suppliers in Australia now include brands such as Nokia, Sony Ericsson, Samsung, LG, Motorola, Sonim, HTC, Palm, Blackberry, Garmin Asus, Alcatel and Apple iPhone. The cost has gone from over $5000 in 1981 (in car system) to Telstra’s cheapest model available today at $35.Mobile coverage, customers and functionality has changed dramatically over 30 years and together with the Internet, social media and affordability; mobil e communication has permanently changed the way in which people live and work. There are now an estimated 22 million mobile phone services in Australia as at 2011. (Budde. com, 2011). The mobile phone market in Australia is highly competitive in terms of both service and phone suppliers. In the area of service providers the dominant player is Telstra, although with a policy of competition, other organisations are developing strong competitive positions.Pre-paid and post paid plans also form a basis for competition between providers. The chart below provides an insight into both service providers and types of service in 2008. Item 3 on the chart includes â€Å"other† suppliers. Source: Mobility Magazine (2011) 10 (3). The Finnish Nokia Brand remains the world’s largest mobile phone producer; although its market share has dropped to 23. 9 percent (from 28. 2 percent last year), and Samsung, LG and Apple are showing strong growth. (IBT March 24 2011). Macroenvironment Eco nomic Environment Economic conditions affect the way in which consumers spend.They also affect the way in which companies spend on such things as product development, range and inventory of stock. The present world economic crisis in Europe has had an influence on both consumers and manufacturers. Global sales of all mobile phones showed a growth rate of 5. 6 percent in the third quarter (2011) compared to 16. 5 percent in the previous quarter. Global sales of Smartphones were also down from 74 percent growth to 42 percent in the third quarter whilst inventories have grown by 20 million phones during the same period. MobiThinking, 2011). Australia has shown better economic performance than that of most other countries, but this too is dependent on factors outside of its’ control. Given that the major manufacturers of mobile technology are multi-nationals, they will feel the effect of any economic downturn, which may also then be seen here. Consumers have shown reluctance worl dwide to purchase new phones during the European credit crisis, although this may be mitigated by consumers waiting for new flagship devices to be released. Gartner, 2011). Even if Australia is insulated from the full effects of a major economic downturn in the near future, it is likely to affect the purchasing intentions of the mobile phone market Political Legal Environment The telecommunications market is important to the domestic economy and as such is subject to political and legal constraints. Politics has led to opening the market to competition, and it is maintaining and strengthening competitive forces.In terms of service providers, they have to operate within a legal framework that is subject to political influence and overseen by such bodies as the Australian Competition and Consumer Council (ACCC) in accordance with Fair Trade and Trade Practices Acts. There is also protection of intellectual property, as well as trademark/design and brand protection in Australia that co mpanies have to consider when marketing their goods and services. Technology Technology has been an essential driver of the mobile phone market for both carriers and handset providers.The original AMPS (Advanced Mobile Phone System) was launched in 1987 and provided an analogue or 1G service and by 1989 had 100,000 subscribers. In 1992, both Optus and Vodafone were licensed and the number of subscribers reached 500,000. In 1993 Telstra launched its new 2G network, and by 1996 there were over one million digital subscribers and 2. 5 million analogue users. Four years later the AMPS service ceased, however, by 2003 the first 3G network together with the Nokia e606 mobile phone allowed for both video calls and high-speed Internet access.By 2005 half the Australian population had a mobile phone, and at present (2011) there are more subscribers than people in Australia. (ActewAGL, 2009). In each stage of development carriers and phone manufacturers worked together to increase the range a nd variety of applications that could be performed by mobile devices, culminating with the issue of the Apple 4 iPhone in 2011. Ongoing development includes Apple’s new battery solution (Hydrogen Cell) that could power the iPhone for ‘weeks’ (AEDT, 2011).The different architecture or platforms used and being developed for the smartphone market will provide both marketing and technology-related opportunities. Operating Systems (OS) such as Palm and BlackBerry, Symbian and Windows Mobile, are all likely to increase competition and consumer choice in the market. Competitor Analysis: Both carriers and retailers/manufacturers operate in a dynamic and highly competitive market. There is a plethora of â€Å"deals† in the marketplace covering both service providers and retailers. Continual new product innovations have put pressure on companies to innovate or lose market share.For example, the Apple iPhone radically changed the product landscape realising phenomena l growth since its release in 2007. (Australian IT, 2011) The introduction of competing phones and platforms that offer advantages peculiar to an individual system is likely to fuel a continuation of the current technological â€Å"war†, which, combined with aggressive marketing from all the major suppliers, makes for an evolving and unpredictable mobile phone market. Mobile phone marketing strategies are aimed at both the business-to-business (B2B) market and the business to consumer market (B2C).Some of the strategies used include; multiple pricing (B2B) as in supplying all the phones for a specific company (eg. Origon Energy), bundling, where the phone and plan form the purchase and provide value for the bundle for both business and consumer markets, two for one deals, free talk time, (for a specified value above that which is paid for in the mobile phone plan), and many more. Customer/Consumer Analysis Customers can be classified in terms of business and non-business. The business sector is more rational, value driven and information hungry. Business customers will adopt a structured approach to analysing costs and, n the main, make choices based on full information. Consumers as individuals constitute a different market, with different needs and associated motivations. From the very beginning mobile phones were seen as status symbols, owning one increased one’s social standing and position. This still remains a key driver for innovators who will purchase new and improved phones as soon as they are available, and bask in their (perceived) increased social standing or â€Å"Street Cred†. Mobile phones have had a symbiotic relationship with social media such as Facebook and Twitter.One has supplied the other with the means to expand and capture a huge consumer audience. As such there has been considerable research conducted into other motivations, needs, and influences that affect the interface of mobile phones and social media. (Lenhart , 2009). For instance, Telstra has released consumer research showing how Australians use their mobiles to connect. It found:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   * 50 percent of Australians feel panic stricken within five minutes when they think they have lost their mobile phone; 25 percent panic after less than a minute. Nearly one third of Generation Y consumers check their mobile phones in the mornings before they use the bathroom, have breakfast, or go online. * Nearly half of Australians rank mobile phones as the innovation they value the most, more than the desktop computer to laptop and the oven to microwave. (SMH, 2011). Mobile phones are an integral part of a consumer’s life affecting the ways in which they conduct business and leisure activities. With the introduction of the Smart Phones, consumers now have the capacity to interact with one another in ways that have completely and radically changed the marketing landscape.Apart from using app lications for shopping online or as a means of supplementing high street purchases) they can now join communities and share opinions about goods and services that are really empowering them in the consumer decision-making process. Internal Environment Sales And Market Share The global mobile phone market is extremely competitive in terms of manufactures. In 2007 Nokia was number one handset manufacture, with a global market share of 38 percent, and estimated sales of â‚ ¬32 billion. Five years later, Nokia finds themselves losing their crown as number one handset anufacture to its long time completive rival, Samsung Electronics. Nokia’s market share has slumped to only 19. 8 percent in the handset market, which works out to be a 52. 1 percent decline from 2007. Nokia has just released its fiscal Q2 2012 financials. It’s reported â‚ ¬7. 5 billion in net sales, a slight increase from the â‚ ¬7. 4 billion last quarter. Net sales are down by five percent, and the operating loss is almost twice the value it was last quarter: â‚ ¬826 million compared to â‚ ¬487 million a year ago. Brand Awareness Nokia has built a reputation on being one of the world’s number one handset manufactures.Nokia initially targeted low income earners and first time mobile phone owners, but since has grown into a leading and innovating smart phone supplier to the world. The brand’s mission statement is heavily focused around communication. â€Å"Everyone has a need to communicate and share. Nokia helps fulfill these needs and we help people feel close to what matters. We focus on consumers by providing very human technology† Nokia’s brand is built around friendship, trust and customer loyalty. Building friendship and trust is at the heart of the brand, and this is visual communicated to customers by two hands shaking.Promotion And Marketing Currently Nokia is heavily promoting there Lumia family of Windows Phones on a massive global s cale. These include 4D projections and live music events. Along with Nokia pushing heavily the Lumia range, Microsoft has jumped on board and pushing hard with carries around the world to promote the Windows based handset, this is done with the â€Å"Smoked by Windows Phone† campaign. This camping was based around simply a bet where people would win a $100 if their non-Windows phones is quicker than the Lumia handset running the Windows Phone software.According to Nokia Australia's head of marketing, Jolaine Boyd, â€Å"This new brand proposition and campaign signals a new Nokia – a company that is thinking and doing things differently. Our aim is to fundamentally shift consumer perceptions and educate them about Nokia's new smartphone range. We want to put Nokia firmly in the consideration set and make the brand relevant again. † This current camping focuses, on Nokia’s global brand positioning and promoting â€Å"Amazing Everyday† which is heavil y focused around portraying the amazing thing we do as humans every day with a massive focus on social media and the youth of today.There are three core elements within this camping and they are, out of home, TV and digital. Boyd added, Australia has the highest smartphone penetration in the world at 37 per cent. The rise of smartphones is dramatically increasing the use of the internet overall in Australia. With this in mind the â€Å"Amazing Everyday† campaign, the current advertisement of the new Lumia range capitalises on these aspects, with bright and bold colours with simple statements. Some of these advertisements are below. SWOT Analysis Strengths Nokia incorporated has a rich history and a wealth of experience which spans well over a 100 years.The company has one of the largest networks of distribution and selling partners in the world. Currently Nokia has one of the largest R;D departments in the world, which has a strong financial backing with over 1. 4 billion USD which allows Nokia to keep producing new and revolutionary products for its customers. Nokia produces many different handsets for different people for their day to day use and pride themselves on building relationships and sustaining them. The build quality of Nokia handsets are at world class levels, which gives to a much higher resale value than its competitors.Weakness Nokia is a well-established company with many strengths, but is main strength has also turned out to be its biggest weakness. The handset giant unfortunately did not move along with the technological move that sweep through right after the turn of the millennium. With the introduction of the iPhone, the handset giant was consistently producing the same type of phone but with a different designs and still asking customer to pay premium prices. The handsets that were being produced were overpriced and customers wanted more from their Nokia’s.Customers became app crazy and with the introduction of social media on the go, Nokia was lagging behind. Bold moves by Nokia gave birth to the NGAGE, a portable gaming console. The handset was designed to make phone calls, send text and surf the web with the added advantage of being able to play your favorite â€Å"retro† on the go. The concept was great but unfortunately this radical all in one device was not accepted by the market, customers still prefer the iPhone. This then gave birth to the N97 a poorly created handset which was very clumsy and had outdated software. OpportunitiesThere are many opportunities at present for Nokia. One of these opportunities is for the company to enter new growing markets, such as the Indian market. â€Å"By entering a newly developing market it has an opportunity to increase its sales as well as the overall global market share. As the standard of living in India has increased so has the purchasing power of the people. By targeting the market at the right time Nokia can gain the most out of this situatio n†( Nokia SWOT Analysis). Nokia has been a leading the way for many years with its well-designed handsets, these designs have gave birth to other handsets such as the iPhone.With the addition of Cal Zeiss to the portfolio, Nokia now has outstanding cameras on their handsets as well. Threats Nokia has many competitors in the market that it must attach to maintain its position as the market leader. The threats are emerging handset manufactures in the market. Companies like Motorola, Sony, LG mobile, Apple and HTC. The manufactures are providing equal or better products and presenting to be tough competition for Nokia in the global market. These threats can be providing cheap phones, new features, new style/types, and premium after sales service.So the growing competition has created an uphill battle for Nokia. With global economic downfall Nokia has to produced premium quality handsets at competitive prices, if this issue is not tackled head on it could create greater problems f or Nokia in the future. Objectives Mission Statement â€Å"Everyone has a need to communicate and share. Nokia helps fulfill these needs and we help people feel close to what matters. We focus on consumers by providing very human technology† * Commitment to deliver outstanding and innovated products to our customers.We seek to become the number one electronics company throughout the world. * Focused to maintain outstanding relationship with all of customers and distribution partners globally. By maintaining our strong relationship our aim is to become once again the number one handset manufacture globally. Marketing Objectives * Increase sales by 10% within one year. Use innovative technologies, such as Nokia Kinetic a world first flexible LCD, the introduction of WP8 handsets, to increase our target audience's awareness to illustrate our competitive advantages. Refine current products. Improve current products to reach new markets based on unmet consumer needs. Sales Objecti ves * To achieve sales on 10,000 units per quarter across every carrier and to have net sales exceed $100,000 per month. * To gain 15 per cent of the total Australian market share with WP7 handsets and to achieve globally 30 per cent. Total marketing budget for WP7 handsets in 20 per cent. Target Market Primary Market 15-22 year old males and females, or better known as generation Z.Most members of this generation have spent their entire lives on the World Wide Web. Generation Z are a highly connected into technology – they are the trend setter. The generation has spent their whole lives around technology and new forms of communications, such as the World Wide Web, instant messaging, texting, iPods, mobile phones, Facebook, twitter and YouTube, giving them the new name of â€Å"digital natives†. These trend setters are no longer using the internet on their PC’s but rather it is on the go and carried in their pockets on their mobile phones.This generation is tren d setting however very lazy; they want something that is easy to use out of the box with no hassles. Market Positioning Nokia’s brand positioning should differentiate itself from the past. In the past Nokia handset was specially designed for low end users, while the N series was aimed at trend setters, it lacked substance and failed to capture the digital natives. With handsets that were out shadowed by the iPhone, Nokia quickly lost its majority market share. Nokia has to aggressively attack the smartphone market by specifically targeting the trend setters of today.The trend setters of today are driven by technology and want handsets that are easy to use, they are heavily driven by social media, and their social status is of the highest priority. The key strategy is to maintain its leadership and lower prices on smartphones while providing high end products for the masses. Positioning Map Innovation Samsung Samsung Nokia Nokia Future Positioning Future Positioning Apple Appl e Sony Sony Nokia Nokia Current Positioningnt Positioning Positioning Current Positioningnt Positioning Positioning High Price High Price Low Price Low Price LG Mobile LG MobileCompetitiveness Marketing Mix Strategies Product According to O’Connor ,B (2000) A well-thought-out marketing plan can give you the ability to exploit your competitors' weaknesses, adjust to any new competition, expand your service capabilities, strengthen customer relationships and minimize sales volume fluctuations. It will also help eliminate unproductive promotions and enable you to create and control the specific image you want to project. To have an impact on the market, Nokia needs a blockbuster – a single, stunning smartphone that puts the company back on the map alongside with Windows Phone.Windows Phone 8 has a lot of interest from various carriers, by taking advantage of all this, the company can get its groove back. The handset must be simple to use, jam packed with technology while upholding two key fundamental features – social media and easy to use. Nokia introduced a whole line accessories free of PVC, keeping in touch with this green aspect already adopted by Nokia, the Lumia 910G will have a specially designed solar panel will built into the back of the handset, as part of the battery cover.Ten minutes of sun exposure will get you three minutes of talk time and the phone's casing will be made entirely from recycled plastic water bottles. Other key features are, quad core processing power, 12 mega pixel camera with Carl Zies lens, Nokia flexible AMOLED screen. 4. 7 inch 4. 7 inch Solar Panel Solar Panel Recycled Materials Recycled Materials Place/Distribution Having already established a channel of distribution partners globally, the handset will be available through all major vendors globally as well as to be purchased through online vendors such amazon and Nokia online.The opportunity exists to expand through existing areas, but with heavy focus o n the Nokia online store. This channel present great opportunity as there is no overheads. Price Price for this handset is directly set against competitors like the Apple IPhone 4s and Samsung Galaxy S3. The handsets’ being manufactures offshore in China and allows entry into the market at $350 per unit. The pricing strategy is very aggressive, keeping in line with the market audience the handset is directed at.This handset will be the first smartphone with high end features for very low costs. Being of all recycled plastic design allows maximum build quality with minimum costs. Promotions The use of viral marketing is the quickest way to get the word out about the new handset, as the use of social networks will spread the message quicker. According to Berkowtiz, D (2010) blogs and social media can be useful for establishing direct communication between marketers and consumers, and they can contribute to establishing a larger share of voice in search engine results.One such e xample of this is the ‘Best job in the world campaign’ that involved getting a job in the topical islands of the great barrier reef. The campaign had generated so much interested that the publicity around it was worth well over $150 million and in the process highlighted Queensland as an ideally holiday destination. By heavily promoting the Smoked by Windows Phone† campaign, over social media sites, the word of the Lumia 910G will spread. Evaluation According to Harris, A (2010), there is a lack of strategy for using these new social media tools.It is often viewed as a technology issue, not a communications tool. Improving brand awareness and exposure involves creating an online presence, delivering key messages to a target audience and then building relationships with potential customers. Social media allows for these behaviors, as well as enhancing a company’s credibility. Social media is fairly new components to marketing, this type of marketing involve a company interested in increasing brand awareness and exposure to new and existing customers.By gaining the trust and respect of potential customers through frequent, but informal postings public relations teams may then assess the results of the marketing campaign. Although posting cannot be quantitatively measured, it can eventually lead to sales. According to Connor, A (2010) public relations professionals must develop creative strategies for linking online community participation to direct revenue. The interested fans having these conversations may be more inclined to purchase from their online friend than someone else.The will give an indication into measuring the sales volumes achieved through social media. From here, Nokia can determine if social medial marketing is worth the time that has been invested into. Implementation Conclusion This report sets out the marketing plan for the new Nokia Lumia 910G. The handset is made from recyclable plastic water bottles and sports a s olar panel on the back for additional power for the handset. It is a leading and innovating handset with superior features at the fraction of the price of its competitors.The handset is specifically aimed at the trend setters of today, the ‘digital natives’ The sales objectives is to achieve 10,000 units per quarter and to achieve a sales revenue of $100,000 per month. Back boning on the currently successful promotion ‘Smoked By A Windows Phone’ campaign and the use of social media the aim is to regain the majority of the globally market share and to become the number one handset manufacture in the world. Reference Berkowitz, David Social Marketing Advertising Age 81:8 (Feb 22,2010):54 Connor, Angela. Market With Social Media 21 Dec. 2009: Research Library, ProQuest.Web. 21 Feb. 2010. Harris, Angela. Does Social WORK? Measuring Community Effectiveness. EContent 1 Jan. 2010: Research Library, ProQuest. Web. 22 Feb. 2010 O’Connor, Bob Motor 193. 3 (Mar 2000): p71-74 http://www. authorstream. com/Presentation/sanju152k-262736-nokia-final-education-ppt-powerpoint/ http://www. campaignbrief. com/2012/03/version10-starthtml0000000149-190. html http://www. informationweek. com/news/mobility/smart_phones/232901759 http://www. marketing91. com/swot-nokia/ http://www. moyeamedia. com/blog/? p=2361 http://techland. time. com/2012/07/20/lets-be-realistic-about-nokias-chances/

Effects of Alcohol and Nicotine Use

The Effects of Alcohol and Nicotine Use Tobacco and alcohol use are common addictions amongst Americans. Each of these products are easily accessible at any convenience store and are perceived to be pleasurable activities as a result of their prevalence in American society. Both drugs also have significantly adverse effects on an individual's health and overall well-being. However, tobacco and alcohol consumption are quite different in the nature of the addiction, and the risks each drug pose to one's health. Tobacco has been present even before the establishment of America.In 1492, Christopher Columbus was offered dried tobacco leaves from the Native Americans he encountered. By 1600, tobacco was used for its assumed healing qualities and was often used as currency. Not until 1826 was the pure form of nicotine finally discovered and labeled a dangerous poison. During the 1980's, many lawsuits were filed against tobacco companies because of the harmful effects of their products. Smok ing became politically incorrect and more businesses began to prohibit smoking on their premises.Despite this, cigarette consumption in America is still common. Today, Marlboro is considered one of the most valuable brands of any product in the world, valued at over 30 billion dollars. (NCSU Libraries) Although the supposed health benefits of tobacco have been promoted by both a variety of cultures and corporations alike, the physical effects of nicotine on the body are now indisputable. In as little as ten minutes after consumption, nicotine can raise blood pressure, heart rate, and constrict blood vessels,thus increasing the chance of heart attack and stroke.Habitual use has been linked to cancer of the lung, throat, mouth, esophagus, bladder, cervix, kidney, larynx, and stomach. (Center for Disease Control and Prevention) Even casual use is accompanied by increased coughing, congestion, fatigue, and shortness of breath. Aside from the havoc wrought internally from the frequent us e of tobacco, it also causes negative changes to one's physical appearance. These changes include, but are not limited to, tooth decay, gingivial recession, halitosis, stained fingers, and an unpleasant odor on one's person. University Health Center at the University of Georgia) According to the American Heart Association, in as little as one cigarette, a user may be addicted to nicotine. Nicotine addiction is recognized by the uncontrollable cravings to consume tobacco products. An addict may feel anxious about the next time they are able to use, and may be very irritable until their craving has been satisfied. As a user decreases their use of tobacco, they begin to withdrawal. Indications of withdrawal are different for each individual.A person will generally be cantankerous, and may suffer physical ailments, such as headaches, nausea, and cold like symptoms. Increased appetite, impaired work performance, and depression are additional symptoms linked to nicotine withdrawal. (Natio nal Library of Medicine) Alcohol has been a prevalent substance in human culture since 6400 B. C. According to Dr. William L. Smith, excavated clay jugs dating back to neolithic periods suggest the intentional fermentation of alcohol. Alcohol most likely originated in Middle Eastern regions, and was used primarily for its healing, antiseptic and religious purposes, often as a gift to the divine.Alcohol has always been a part of American culture, as it was first brought over by English settlers. One of the first laws regarding alcohol was passed in early seventeenth century Virginia. The law prohibited public drunkenness, as it was a threat to society. Though, the first alcohol related laws did not prohibit the substance itself. In 1920, National Prohibition took effect, consequently the 18th Amendment of the United States Constitution. However, in 1933, the 21st Amendment repealed the prohibition, legalizing the creation, sale, and consumption of alcohol. WWW2 Webserver) Laws in reg ards to alcohol had to be placed into effect in order to ensure the safety of America's people. Whether or not the alcohol use is routine, the array of symptoms that may be exhibited have the opportunity to be devastating to the user and to the public.In one night of drinking, the intoxicated individual has already put themselves at risk for alcohol poisoning, miscarriage, violence, and death. One of the least tolerated criminal offenses of today is driving while intoxicated (DWI), or driving under the influence (DUI), which is defined by a blood alcohol content level over . 8%. A few sips of an alcoholic beverage can debilitate the driver, causing them to careen in and out of lanes, run red lights, and other dangerous driving practices. Alcohol is also a common factor in regards to risky sexual behaviors. The impaired ability to make responsible decisions increases the chance of accidental pregnancies and sexually transmitted diseases. Heavy alcohol use over the lifetime causes ann ihilating physical and psychiatric damage to the body. The user becomes at risk for a variety of health issues, including cirrhosis, dementia, liver disease, and stroke.Long term use also puts the individual at risk for mouth, throat, esophagus, liver, and colon cancer. While the internal damage is taking place, the individual is slowly using their ability to function in society. The daily drunken stupor or hangover prohibits the person from excelling in the work place and in the classroom. Stomach pain, headache, and irritability are common symptoms that hinder the usefulness of the individual. If these characteristics persist, job loss and expulsion will occur. Aside from the regression of skills and potential successes, an alcoholic will induce detriment upon their family and friends. Center for Disease Control and Prevention) Alcoholism is, according to the University of Maryland Medical center, a â€Å"chronic, often progressive disease in which a person craves alcohol and dri nks despite repeated alcohol related problems, like losing a job or a relationship. † The disease is often accompanied by a significantly high tolerance to alcohol, drinking in order to feel â€Å"good† again. An addict may sneak or hide drinks, plan activities around drinking, or drink to escape life's hassles. Family and friends of the victim may notice personality changes, mood swings, and broken promises.The addict may feel troubled by how much they are consuming, and may be quick to defend themselves with confrontations regarding their drinking habits. When an alcoholic is unable to drink as much as need be, they suffer from physical withdrawal symptoms that inhibit them from feeling well. Nausea, sweating, shakiness, and anxiety, are all common signs of alcohol withdrawal. Insomnia, hand tremors, and fatigue are additional symptoms that may be experienced. (University of Maryland Medical Center) Alcohol and tobacco products are commonly used in not only American s ociety, but in cultures around the globe.They have each continued to be advertised as enjoyable experiences, thus their social acceptability. Despite their prevalence and media allure, scientific evidence is irrefutable. Single and habitual use of nicotine and alcohol both affect the body in significantly negative ways. These substances are both linked to a variety of cancers, amongst other health issues. The forgo of these drugs results in mild to severe emotional discomfort. Typical behaviors include depression, irritability and apprehension. In addition, visible cues such as sweating and shakiness are common in withdrawal.Based upon scientific study, alcohol and tobacco use are practices not to be taken lightly. Their toxic effects on the human body are disregarded in American culture, however, it is imperative that every user understands each substance in its entirety. A nicotine addiction is quite different from an alcohol dependency, as nicotine seems to be primarily a physica lly unhealthy habit, and alcohol becomes a lifestyle. Nonetheless, each addiction is completely detrimental to one's health, and all risks should be considered before taking that first sip or smoke.

Eating Disorders And Anorexia Nervosa - 947 Words

Eating disorders such as anorexia nervosa, bulimia nervosa, and binge eating disorder consist of emotions, attitudes, and behaviors surrounding weight and food issues. Up to 24 million people of all ages and genders suffer from an eating disorder in the U.S (ANAD, n.d.) bulimia nervosa as well as the other eating disorders are considered to be a female eating disorder, a disorder that only affects women which limits males to seek treatment let alone make aware to other that they suffer from bulimia nervosa. Individuals who suffer from bulimia nervosa tend to eat big amounts of food which experience a lack of control of over eating. They tend to undertake improper purging behaviors such as vomiting, laxative use, excessive exercise and/or starvation. Individuals with bulimia nervosa display their unsuitable adaptive eating patterns a minimum of two times per week for three months and are excessively sensitive to weight gain (Ray, 2004). Bulimia Nervosa is an eating disorder that affec ts females as well as males. Males tend to hide their disorder due to the fact that bulimia nervosa as well as the other eating disorders is considered to be a women’s disorder, a disorder that occurs only to women. Although eating disorders are less common in men, there is about 10-15% of males who suffer from bulimia nervosa (ANAD, n.d.). Just like females, males are also put under pressure and concern about their body image especially those who play sports. Athletes such as body builders,Show MoreRelatedEating Disorder : Anorexia Nervosa1622 Words   |  7 Pages Bulimia Nervosa To be diagnosed with eating disorder, someone must meet certain criteria. The criterion for diagnosis slightly varies depending on if you are referring to people who (A) fear gaining weight, and have significant weight loss,(B) eating a huge amount of food , then use laxative to remove the binged food, (C) the use of excessive exercise and fasting in order to remove or to reduce the amount of calories consumed, and (D) distorted body image, no matter how thin they become, theyRead MoreEating Disorder : Anorexia Nervosa1658 Words   |  7 Pagesbeen affected by this disorder. The specific disorder that is being referred to in this paper, an eating disorder, is Anorexia Nervosa, the restricting type. An eating disorder â€Å"involve[s] disordered eating behaviors and maladaptive ways of controlling body weight† (Nevid, Rathus, Greene, 2014, p. 335). Another well-known eating disorder is Bulimia Nervosa which is characterized by binging and purging (Nevid, Rathus, Greene, 2014, p. 338). Bulimia is different than anorexia since victims of bulimiaRead MoreEating Disorders And Anorexia Nervosa Essay1948 Words   |  8 Pagesnotion of an â€Å"ideal† body and eating disorders, there is no consensus as to the root cause of eating disorders. The general belief is that eating disorders result from one or more biological, behavioral, and social factors including genetics, unpleasant experiences/trauma, peer pressure, teasing, and family members with eating disorders, among others. There are numerous types of eating disorders. Both women and men are affected by eating disorders each day. Eating disorders can occur from an early ageRead MoreEating Disorders : Anorexia Nervosa1493 Words   |  6 PagesIllness Paper – Anorexia Nervosa February 28, 2016 According to the Mayo Clinic (2016), eating disorders are â€Å"conditions related to persistent eating behaviors that negatively impact your health, your emotions, and your ability to function in important areas of life.† One such eating disorder is anorexia nervosa. Not to be confused with anorexia, which is simply a general loss of appetite that can be attributed to many medical ailments, anorexia nervosa is a serious eating disorder and mental illnessRead MoreEating Disorders: Anorexia Nervosa1653 Words   |  7 PagesAnorexia Nervosa Anorexia Nervosa is one of several subtypes descending from feeding and eating disorders. It is a crippling life-threatening condition marked by a patient placing restriction on energy intake relative to needed energy requirements, resulting in a relentless pursuit of low body weight in the context of age, sex, development and physical health. According to American Psychiatric Publishing of diagnostic and statistical manual of mental disorders (DSM-5) â€Å"Anorexia Nervosa, often timesRead MoreEating Disorders : Anorexia Nervosa974 Words   |  4 PagesI have always been intrigued with eating disorders, particularly Anorexia Nervosa. When I was 18 years of age, my mother questioned whether or not I was Anorexic and she took me to the family practitioner, who then informed me that I was three pounds shy from being considered underweight. I knew I was thin, but I was really thin, but also really proud of my size. In an African American urban environment being thin was related to ill ness and drug abuse. I was often teased about how thin and fragileRead MoreEating Disorders : Anorexia Nervosa889 Words   |  4 PagesANAD Eating Disorder Statistics about thirty million people in America of all ages and genders suffer from one of the three main eating disorders. Many people suffer from more than one of the eating disorders. Only 1 in 10 individuals receive the treatment that is needed to recover(ANDA). Often eating disorders are known to be triggered by outside factors in their life, but studies show that it is more likely to be a part of their genetics. According to Webster the definition of an â€Å"Eating Disorder†Read MoreAnorexia Nervosa- Eating Disorder1685 Words   |  7 PagesEffects of anorexia are mostly seen on the outside of the victim’s body, but do not be fooled. This detrimental eating disorder affects one’s mind just as much as it would the body. What Anorexia does to the mind is that it distorts the way one views their body. Victims of anorexia become fixated on their body image and overly critical about their flaws and weight. Even being obviously underweight, Anorexics will continuously deny that they have a problem and continue with their fatal practices.Read MoreEating Disorders : Anorexia Nervosa1462 Words   |  6 Pagessuffer from many illnesses, one in particular is eating disorders. There are many types of eating disorders, but there are three common ones that are known today, which are anorexia nervosa, bulimia nervosa, and binge-eating disorder. Eating disorders are not healthy, thi s type of disease can be very fatal and crucial to one s health   mentally, physically, and socially. The purpose of this report is to provide background information about eating disorders, strategies to prevent this illness from occurringRead MoreEating Disorders And Anorexia Nervosa951 Words   |  4 PagesEating disorders are a sickness that can come from psychological issues and it can disrupt the everyday diet. â€Å"A person with an eating disorder may have started out just eating smaller or larger amounts of food, but at some point, the urge to eat less or more spiraled out of control.† The common eating disorders are anorexia nervosa and bulimia nervosa. Anorexia nervosa is when someone see’s themselves as an overweight person, so they watch what they eat since, they have a fear of becoming overweight