Competition amongst mobile phone companies in the UAE. with a special concentration on Siemens Mobile

Abstract

Siemens mobile came with a new positioning strategy in 2004 to target different segments of customers. As the mobile market continues to grow globally, the number of competitors in this industry is also growing with different technological innovation made in this regard for the last couple of years. With a new positioning strategy, Siemens has totally ignored a large number of the population comprised of the younger generation. Siemens with "Designed for Life mainly focuses on Elegance & Style. In UAE alone there are 24 millions of mobile phone subscribers and the number is increasing at a very high pace. Therefore, leaving out a large number of population encompassing youths might seem too much of a challenging for Siemens to cope with the market, given the fact in UAE market Nokia is leading with 53% market share followed by Samsung 16%. Sony - Ericsson 9 %, Motorola & LG 8 % combined. However, this figure continues to change as the total number of subscribers is increasing on a regular basis.

Mobile companies are facing a fierce competition against each other on a regular basis as each and every company is coming up with a new phone with new Design, Features &Style every couple of months which has made competition more immense and hard to survive in the market.

The study undertaken has analyzed the mobile phone market in UAE with a focus on Dubai and Ajman, two of seven emirates in UAE. A total of 219 people have been interviewed as samples. Descriptive survey has been conducted to collect data in a form of questionnaires. The study mainly focused on the fact to see if Siemens will be able to increase its market sales with a new positioning strategy, embraced in 2004 globally. Different modeling techniques such as Multi-Attribute Attitude Model known as Fishbein I and The Theory of Reasoned Action also known as Fishbein II have been applied to see if Siemens under different situations can be able to increase its sales in UAE market of mobile phones with competitors as hurdles to slow down any prospect of the sales increase. A set of 30 questions have been formed in a form of Questionnaires for the actual mobile users to give their responses. These questions have been analyzed, interpreted with fact-finding results. The study also made possible recommendation with the results received from designed questionnaires for Siemens to adapt in order to increase its sales with profit impact on market share.