Information Technology Sub-sector Analysis - Essay Example

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Consumers will compare and analyze different products from different manufacturers before making purchases decisions. Its the duty of each and every organization to make sure that their products are of high quality and…
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Information Technology Sub-sector Analysis
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Mobile Application Systems Analysis Information Technology Sub-Sector Analysis Using Porter Four Competitive Analysis Inevery industry, competition is the order of the day. Consumers will compare and analyze different products from different manufacturers before making purchases decisions. Its the duty of each and every organization to make sure that their products are of high quality and standard quantity to make them attractive to the consumers. Industry environment usually has a direct effect on the strategic actions of a firm. Four force model of competition will be used to analyze the mobile application system. It entails four forces outlined below (Demetriades, 2012).
Porters four analysis gives two dimensions that define the strategies. One is the competitive advantage source, and two is the scope of the advantage. The first one comprises of product differentiation or low-cost approach. The second one consists of narrow or broad approach. When crossed the dimensions gives the porters four business strategies.
Cost focus
To win competitive advantage, the IT organization should apply cost focus in a small group of the target section. A Cost Focus strategy usually emerges as a competitive move, at times to challenge a certain competitor. A smaller IT firm can as well gain entry to a market by competing on cost within a particular niche. Competition in the mobile application industry has lead to the rise in a totally new product called smartphones that have greater functionality as compared to normal mobile phones due to their capability of running mobile apps. The cost of these smartphones is not over exaggerated to discourage the customers from buying them.
Cost leadership.
The IT organizations maintain lesser cost across different product offerings. An analysis of competitors cost should be carried out prior to setting products costs. For instance, by 2010, the mobile apps industry was highly flooded as new competitors got into the market saturating it with several varieties of utilitarian and lifestyle apps (Tarnacha & Maitland, 2006). In most instances, apps are designed by third-party developers like companies that wish to advertize their products, or by freelance designers who trade their apps at a profit. The major operating systems, Android and Apple, each have an equivalent dedicated marketplace due to its subsidized costs. Limiting Apple policies with regards to app development in the preliminary stage have had a verifiable effect on the iOS apps market. A larger percentage of all mobile app developers have a preference for developing apps for the Android operating system whereas a smaller percentage prefer to do so for Apple’s iOS (Tarnacha & Maitland, 2006).. Consequently, Apple eased a number of the restrictions placed on iOS publishers and developers with a perspective of making their platform fairly more open.
Differentiation focus
Differentiation focus is vital when the products prices are high but deemed to be worth. The products should meet the consumers’ expectation. The Quality of the products should be compromised whatsoever. The degree of competition among mobile phone application companies is quite high. In this case, companies like Sourcebits, Intellectsoft, and TechAhead are fighting to get marketplace permits to distribute or download mobile apps for their smartphone that are of high quality. Free applications might be available in these marketplaces together with those given for sale.
In a differentiation strategy, a mobile application system organization should be unique in its industry in some areas that are extensively valued by buyers. Mobile applications with games both paid, and free are usually the most downloaded application class because of its uniqueness. Google Maps, Facebook, and the Weather Channel were the trendiest apps across all avenues. In social networking, Facebook the most popular app followed by MySpace trailing. Thus, a mobile application with such features rewarded for its distinctiveness with a premium price (Demetriades, 2012).
Bouman, K. L., Abdollahian, G., Boutin, M., & Delp, E. J. (2011). A Low Complexity Sign Detection and Text Localization Method for Mobile Applications. IEEE Transactions on Multimedia. doi:10.1109/TMM.2011.2154317
Demetriades, D. (2012). Information technology. Oxford: Oxford University Press.
Shi, M. (2007). Technology base of mobile cellular operators in Germany and China: A comparative study from the perspective of the resource based view. Berlin: Univ.-Verl. der TU, Univ.-Bibliothek.
Tarnacha, A., & Maitland, C. (2006). Standards Competition and the Role of Intermediation in the Supply of Mobile Applications. Read More
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