Page 1 of 4
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 10
November 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 47
Product Innovation in the Smart Phone Industry: Giving a
New Path to Business
Naib Singh
Assistant Professor,Deptt. of Commerce,Rajiv Gandhi Govt. College, Saha-(Haryana)
Abstract
Product innovation is the dynamic
marketing practice which helps the business
firm to compete in the market. Every product
needs innovation to fulfill the requirements
of the customers time to time. India is
having the third largest market in the world
in case of selling the smart phones. The
country holds second largest market after
China in this area. Now a smartphone user
can perform various operations along with
calling through its phone such as the
function of remote control of the television
set and even various medical tests are also
available in many smartphones. Product
innovation is enabling the smartphone firms
to do business with the interest and
confidence in the market.
Key words: Smartphone, Product Life
Cycle (PLC), International Data Corporation
(IDC).
Introduction
A business organization survives on its
product or service. Every manufacturing
enterprise sells its products to the customers
for attaining the growth as well as goodwill.
Customers purchase the products as per their
requirements. Requirements of the
customers change as per their aspirations.
Every product needs innovation as time
passes to fulfill the requirements of the
customers. Every product has its life cycle
which is called Product Life Cycle
(PLC).PLC of any product includes five
stages namely, Product development,
Introduction, Growth, Maturity and Decline.
In the development stage the firm develops
the new product with the latest idea. In this
stage the business firm suffers investment
costs and there are no sales in this stage. In
the second stage product is introduces the
market. The rate of sales is very slow which
results in lower profits. Heavy expenditure
is incurred on product promotion. Growth
stage includes market acceptance of the
product among the customers. A high sale
yields high profits. Sales starts to be slow in
the maturity stage of the product. Customers
prefer some new features in the product in
this stage to fulfill their needs in the
competitive environment. In the decline
stage product has no sale. Hence maturity
stage requires product innovation.
Product innovation has the great importance
in this modern competitive era. The main
reason of the product innovation is the
dynamic market. Product innovation is
essential to compete in the market. Various
changes are performed by the manufacturer
in the product under this process. When
existing product looks entirely different
from its previous look, then this process is
termed as innovation. There are various
reasons for product innovation like,
Page 2 of 4
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 10
November 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 48
competition, business growth, market
change, maximum utilization of resources,
reducing the risk, technological
development etc.
Statement of the Problem
Smart phone has brought revolution in the
communication world. In this paper, product
innovation by the smart phone firms has
been analyzed in the context of Indian
market. In India communication through
mobiles have prominent place. For the
purpose of the study, the author has
analyzed the innovative practices by the
various leading smart phone firms in India.
Product innovative practice has the great
role to play in the competitive marketing
environment. After the technological
revolution all over the world, the rate of
obsolesce in the smart phone area has
increased. Smart phone manufactures have
to be alert in the area of product innovation
for attaining the fruitful business in the
modern environment.
Objectives of the Study
This paper is based the product innovative
practices in the area of smart phones. The
main objective of this paper is to study the
innovative practices by the various smart
phone companies in India. Innovative
practices lead to enhance the business. An
attempt has been made in this study to
highlight the impact on smart phone
business as the result of product innovation.
Methodology
This paper is based on three main segments
describing the introduction of the concept,
objectives and methodology in the
beginning part, information about the smart
phones business and innovative practices by
the various firms in India in the body text
and discussion in the ending part of the
study. The study is based on information
obtained from various published and online
sources. Secondary data have been used for
the purpose of drawing the inferences.
Smart Phone and Product Innovative
Practices
Smart phones have attained the prominent
place in the routine life of every person in
the modern era. In India smart phone are
used at large in the communication process.
According to the research firm Canalys,
India is having the third largest market in the
world in case of selling the smart phones.
The country holds second largest market
after China in this area. In India, Samsung,
Micromax, Motorola, BlackBerry, Karbonn,
HTC, Sony, Spice, LG, Huawei and G’Five
are the leading smartphones. Manufacturers
of these brands are using product
innovations for making their phones more
competitive.
International Data Corporation (IDC) has
depicted in its report that in the second
quarter of 2015, India has imported 26.5
million smartphones and this figure is 44 %
up for the same period of 2014. This trend
shows that the smartphone market is
increasing in India day by day
Page 3 of 4
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 10
November 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 49
Figure1: Share of Smartphone Vendors in India (2015-Quarer-2)
Source: International Data Corporation AP Quarterly Mobile Phone Tracker, 2015Q2
Samsung is having 23 % share in the Indian
market and is leading in the business of
smartphones. According to the viewpoint of
Mr. Anirbn Banerjee, the Associate Vice
President of the Research and Advisory
Services Division of CyberMedia Research,
Nowadays Indian people giving preference
to the characteristic phones which offers
high speed and power.
Smartphone firms are focusing on fulfilling
the aspirations of the customers by making
their smartphone more and more innovative
time to time. All the leading companies have
launched quad-cores and android phones
with high quality cameras. Edge-to-edge
display feature has been introduced in the
phones for attracting the buyers. Various
apps related to various aspects of routine life
have been uploaded in the phones. Now a
smartphone user can perform multitasks
through its phone such as the function of
remote control of the television set and even
various medical tests are also available in
many smartphones.
Many companies has introduced phone cum
mini-computers which fulfill the
requirements of personal computer. These
phone are easy to handle and carry at the
workplace and moreover less costly to
Desktop and Laptop. This type of revolution
has totally changed the market scenario of
smart phones in the communication world.
This fast changing business environment
requires more innovative handsets for the
smartphone users.
Discussion
Product innovative practices have the great
importance for competing in the modern
business environment. Smart phone market
is changing very fast due to technological
advances and consumer needs. Smart phones
firms are practicing the innovative practices
for making their products more useful and
23 %
17 %
11 %
7 % 6 %
37 %
Samsung Micromax Intex Lava Lenovo Others
