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Mobair Case Study

1647 Words7 Pages

Letter to Shareholders
Basma, Raseel and Sara are pleased to report that your firm MobAir is the one of the world’s top 3 leading cell phone providers. With the highest revenue as well as market share. MobAir’s success can be attributed to its focus strategy through concentrating on a narrow products line segment to attain a cost advantage and features differentiation. MobAir’s is focused on maximizing shareholder value through promote products accessibility as well as providing the most innovation products. Unlike its competitors, MobAir’s financial performance was reasonably stable, and significant fluctuations were successfully avoided. MobAir is also able to achieve consistent performance by tailoring each market different conditions suitably. …show more content…

These expenditures could be spread over several years to minimize the overall cost of acquiring these technologies. An example of this occurred during the second round, where R&D expenses were extremely high which made investing in new technologies and features much more costly. A wise decision would be to wait until the costs are more stable, which would allow MobAir to reduce costs and maintain solid profits.

Market Share
MobAir is concentrated on creating a high market share percentage and maintaining it throughout its different rounds. Which was successfully accomplished by building many plants in U.S.A. and Asia, and producing the accurate amount to satisfy demand. In addition to promotion and marketing having a significant role in attaining a good market share.

Competitor …show more content…

In order to succeed in this environment an organization must understand its competitors’ strengths and weaknesses and anticipate how these strengths and weaknesses may affect its own team’s strategic position. For example, product demand is directly related to the technological competence of competing companies. When several companies hold the same level of technological competence MobAir’s ability to sell cell phones decreases dramatically. This was evidence in round 5, where profits reached a negative number. As a result, demand was spread over (6 of teams) leading to weak industry wide demand. MobAir’s has built a considerable production cost advantage over its competitors. However, this competitive advantage will not last indefinitely. Team OrangeTel, the nearest competitor to MobAir, has production costs very similar to ours. In addition, MobAir has significantly more production capacity. Although having large production capacity is a liability during times of weak demand, such as the ones characterizing the current market, it becomes an advantage during times of strong demand. With larger capacity, Team PinkLadies has the ability to grow its sales and thus its market share more rapidly. Understanding the threat that this presents, MobAir has begun increasing plant

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