Market Needs of AT&T - Research Paper Example

Apart from this, the durability and reliability of the product is other important quality variable that can play important role in satisfying the needs of the customers. After-sales services, good warranties, as well as good coverage for mobile phone services, are some of the key needs of the target market to be satisfied.

It is critical to note that the firm needs to perfect its strategy to continue to serve the market. As the such, constant focus on improving the focus on the customer coupled with better delivery and service (Kotler and Keller). AT&T needs to develop an extensive offline and online distribution mechanism to facilitate the customers to obtain the product with relative ease. It is also important that AT&T must develop an alternative channel for distribution. As such, this product will fulfill the needs of those customers who are willing to enjoy entertainment on the go and belong to a middle-income level group.

It is argued that one of the key indicators of the viability and strength of the business is the growth in the market share. Currently, there is a smartphone boom in the industry and most of the growth is fuelled due to explosive growth witnessed in the sale of smartphones. Some estimates suggest that sales growth in the Smartphone market during the first quarter of 2011 was 20% indicating that the market for smartphones is growing at a rapid pace (Wauters). The projections made by International Data Corporation suggest that the overall growth of the smartphone market during 2011 would be 50% with overall shipping estimated to be at the level of 450 million units.

The above trends suggest that by the end of 2011, the overall ratio of feature phones and smartphones will be 49:51 in the US. This convergence of the market share, therefore, indicates that there is a lot of potential in the market for future growth and the future may completely shift in favor of highly specialized smartphones.

It is also suggested that the market growth will be driven by the constant introduction of new products in the market. Only those players who can roll out new and improved products at regular intervals will be able to sustain.

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