Mobile Imaging: A Market Analysis : MBA-thesis i marketing

Abstract: Abstract   Camera phones are moving into the rapid growth stage and they will rapidly be the most common image capture device in the world. Analysis agencies Gartner, ABI-Research and Future Image estimate that over 650 million camera phones were shipped in 2007 and that by the end of the decade there will be a global population of over one billion mobile imaging handsets -- more than double the number of digital still cameras (DSC).   Although handset shipments are flourishing, consumers are not using their camera phones to the fullest extent. Researchers reveal that the number of photos taken, shared, and printed is relatively very low compared with DSC, resulting in a significant unrealised revenue potential for the mobile imaging industry.   Despite the current limitations, recent researches done by Nokia marketing reveal that 40% of camera phone users indicate the camera phone is their primary camera. The researches suggest that with improvements in functionality, quality, usability and usage model, camera phones have the potential to be the most common and most frequently used type of camera.   We believe the industry needs to stimulate more photo activity among camera phone owners to speed up (1) handset purchases, (2) picture taking, and (3) sharing, storing and printing services.   To achieve this we believe companies with niche imaging technologies; such as faster decoding, less memory usage, minor processor (CPU) demands, rich features, and rich user experience have slightly high chance to outstand itself in this market. Also companies within the mobile imaging sphere which should have a competitive edge are the one who can solve inhibitors.   Five out of every six sold cameras will be embedded in mobile phones. We believe the dominance of camera-phones will impact the imaging market in a variety of ways that will benefit the industry.   This report aims to initiate a simple approach to give a high level view for companies aiming and searching for mobile imaging opportunities and should help extending the mobile focus thinking and area.   Initiating a study on mobile imaging has been a challenge and this is due to two main reasons; the speed of development within this particular industry and the access to credible sources whether commercial or scientific. There is a significant fierce competition in the industry and it has been a great advantage to the authors to have had access to commercial reports and information sources first hand.   When it comes to theories and methods, they have been taped from both the mainstream marketing literature and guerrilla marketing. There has been no obvious advantage to exclude mainstream marketing theories for this fast growing and quickly changing industry and methods described has proven worth while for the outcome of this study. The mainstream marketing literature has been utilised in the market analysis performed on the materiel obtained and when looking to the future possibilities and opportunities as well. The MIO model or the MIO-perspective, has been an excellent tool to help digest the information in a structural way and the three perspectives that are the foundation of the model; Market, Interaction and Organisation are all needed in any successful Marketing activity whether it is a fast moving business like the mobile image one or a more traditional industry e.g. the car industry. The model identifies the present situation, the future, strategy and action plan, all important components in forming the business plan. When describing both the present environment and when searching for new opportunities, the usage of the classic 4P’s is outstanding. Product, Price, Promotion and Place are all important parameters to elaborate on and as the MIO model points out, one should first focus on the industry as a whole and not once own enterprise in order to find profitable ways to develop the business.   Some conclusions drawn from the study are; the more megapixels camera phone are released the more the customers’ awareness and education is raised and refined. This leads to better customers inconvenience to get the best out of their phones and the myth of getting a free digital camera does not live any more. The customers are getting better informed and they want their right to one converged high quality device where the camera is as important as the call functions of a phone device.