Power Idea Technology Ltd Power Idea is a Chinese company. founded in 2006. Power Idea focuses on...

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Power Idea Technology Ltd Power Idea is a Chinese company. founded in 2006. Power Idea focuses on developing waterproof and rugged products - mobile phones, diving masks for outdoor sports enthusiasts. It provides OEM pans or does ODM for European and Asian companies. However, as Power Idea gradually increases its market shares. it finds that its business partner located in Europe, appropriate most profits and leaves limited growing space. Power Idea hopes to establish its own name in outdoor sports market I Analyze the general mobile phone market (e.g.. market structure. rivalry, product characteristics) with Michael Porter's five strategic forces Analyze Power Idea's product space 2 Analyze the outdoor sports market Do you think it is a good idea for Power Idea to specialize in outdoor sports mobile phones? Why or why not 3 If you were a consultant to Power Idea. what would you suggest to Power Idea to help it establish its teand name and explore the overseas market? Power Idea has limited sales in its domestic market, mainly because some manufacturers pass off they products as those from Power Idea What do you think Power Idea should do to Increase its domestic sales? What should Chinese government do to help innovators like Power Idea? 5 "http://videacousrusdexaspx" is the website for Power Idea Please comment on the appeal and usefulness of its website from the perspective of a potential use or a consultant 6 Do you likeidulike their products? Please choose one product to analyze the strengths or weaknesses oe both. 7•.Are there any other market sectors you think Power Idea could extend its business to' Please provide other suggestions or comments if there are any •• that question is only for extra credits and does not affect your exam score if you choose not to answer it

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David · Accepted Answer

Power Idea Technology Ltd. 
Part A 
1. Analysis of the general mobile phone market based on Porter’s 5 force model 
The general mobile phone market is extremely competitive. The competition can be analyzed 
based on the Porter’s 5 force model which includes the following: 
a. New entrants: New entrants are several in the mobile market. The threat is very high 
since the entry barriers are minimal. 
b. Competitors: There are large numbers of competitors in the mobile phone market. It 
results in there being severe price competition.  
c. Substitutes: the internet and Skype calling are substitutes but not close substitutes. So at 
present the threat of substitutes is not very high. 
d. Suppliers: There is a lot of price competition and high cost suppliers lead to loss of 
competitiveness to a mobile company. 
e. Customers: Customers are the ultimate king when it comes to deciding on which firm to 
choose while buying a mobile phone.  
In this way the mobile phone market is extremely competitive and it is not very easy to survive 
in the global mobile phone market without a high level of competency (Saeed Samiee and 
Kendall Roth, 1992).  
2. The outdoor sports mobile  market and suitability for Power Idea technology  
The outline sports market is a relatively new market. It has yet not been fully saturated and hence 
it is a good idea for Power Idea technology to explore the outdoor sports mobile phone market. It 
can help them become the pioneers in several markets and thus provide them with the first mover 
advantage. In this way it creates a high risk high return market and power idea technologies, 
being a firm that takes up initiatives to innovate, it should enter the outdoor sports mobile 
market.

Power Idea Technology Ltd Power Idea is a Chinese company. founded in 2006. Power Idea focuses on developing waterproof and rugged products - mobile phones, diving masks for outdoor sports...

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