Industry Analysis & Industry Trends
Although consumer demand has been fuelled by solid growth in the number of mobile connections and continuing advances in product design and technology, these changes have not translated well into the retail market. Instead of record sales, industry operators have faced a difficult trading environment. The collapse of Phones 4u in September 2014 caused industry revenue to decline by 20.1% in 2014-15. Revenue is expected to decline at a compound annual rate of 6.5% over the five years through 2015-16 to reach £2.4 billion thanks to mounting external competition leading to shrinking profit margins and declines in the average price of phones. Total industry revenue is forecast to decline by 2.2% in the current year... purchase to read more
Industry Report - Starting a New Business Chapter
New players planning to enter the Mobile Telephone Retailers industry have faced low barriers over the past five years. This has largely stemmed from the lack of regulation or legislation restricting entry into the industry. Barriers to entry have also been minimal due to the low capital investment requirements for new operators. Apart from the initial capital requirements, operating from day to day is not a labour-intensive process for new players.
The main barrier to success in the industry is the relatively high level of market concentration, with one company dominating industry sales. Increased merger and acquisition activity over the past five years has resulted in increased competition in the industry... purchase to read more