UNDERSTANDING THE INDUSTRY AND MARKET PLACE

5.1   Industry Overview

 CSL offers a wide range of electronic devices making it to monopolize the local mobile industry.CSL is on the same race as established brands in terms of technology giving locally emerging and already existing brands stiff competition. According to Bernama reports Spice CSL is claiming that it took second position in Malaysian mobile phone market with 17.4% of September 2010.The CSL Spice tablet is expected to sell 3000 units per month and the company has been increasing the trend for android Smartphone's. 

Even though its succeeding in the local market shed by established brands which has loyal customer like Apple Samsung, Nokia and Sony Ericson.

           The CSL new product is Ds700

5.2   The  Industry

i) Definition of the Industry

CSL is under computer and electronic device industry. The company engages in mobile phones, mobile devices, computer peripherals and telecommunications. CSL innovation is supported by extensive research and development done by China and Taiwan propelling the company to provide competitive value and choice for its customers.

ii) Shape of the Industry

According to the diagram the mobile phone market is growing rapidly under the computer and electronic devices. New technologies have led to significant changes in the shape of the industry because of mergers, strategic alliances, acquisitions , outsourcing production and partnership impacts the market. Google Android software and Iphone are at war trying to capture a larger market segment .Due to this Apple Iphone revolutionized the industry and Google Android software offered key applications and gadgets. As a result of this major technological advancement  social networking is mobile and the phone industry is growing at a faster rate because consumers want to be mobile connected to the internet anytime anywhere. Nowadays ,mobile phones and tables feel like you are carrying a mini computer.

iii) Development of the industry

The development of the computer and electronic device  industry is growing rapidly because  a computer purchased last month is going to be absolete in the coming few months. To substitute  this we have  to go back to Moore's law which states that the number of transistors on a chip doubles every 24months and has been  the guiding of the high –tech industry since it was coined by Intel co- founder Gordon Moore in 1965.So technological growth is expanding in capabilities and computer power. In the future computers would have the kind of power we never imagined before .

5.3   The Market place

i) Current condition of the Marketplace

 Since established brands have given license to china to make Chinese version of their phones so that consumers of lower income groups can afford, this gives CSL  a stiff competition because it doesn’t have  strong brand image. The target audience would opt to buy a fake Nokia rather than an original Malaysian Brand CSL which they are skeptical about its quality

    ii)   Changes in the marketplace that may affect your campaign-positively or negatively

Positive

•    The economic down turn cripple consumers pockets and they start lowering their standards to brands that are affordable by the majority and CSL benefits more as it is the only brand trusted among the less established brands which their service centers are rather elusive. CSL comes second to established brands because of the reputation and service they have locally and abroad.

Negative

•     Consumers get confused when many different china brands offer phones with same features and consumers might end up choosing any phone within their reach. Due to uninformed purchase the probability of CSL not being chosen is high because of poor advertisement and poor design aesthetics especially the Droidpad.