Entrepreneurship and Innovation Essay Example | Topics and Well Written Essays - 2500 words - 1

Entrepreneurship and Innovation - Essay Example (comscore.com/press_events). There has been a surge in smart phone ownership, with growth particularly strong over the last year, up by 81 per cent from 7.2 million users in May 2009 to 12.8 million in May 2010. In June 2010, over a quarter of people in the UK (26.5 per cent) said they had a smart phone; more than double the number two years previously (media.ofcom.org.uk). This data can be used to imply that the Smart Phone would have wide acceptability in the market. One of the important assumptions which we can make here is that the growth in the market will make smart phone more affordable majority of people in the United Kingdom, their proliferation will increase and also lead to a surge in the contents of the mobile and data consumption. A new report regarding the geography of smart phones indicates that the shipment of smart phones in the first quarter of the year was 55.2 million with the growth hitting 67% year-on-year. (microscope.co.uk). It is assumed further that it provi des a substantial opportunity for different people in the mobile ecosystem – from operators and manufacturers to publishers and advertisers – who adapt to this dynamic market. ... On 7th May, 2009, a long-awaited recommendation on the mobile termination rates to reduce termination charges was adapted by EU by the end of 2012. (berr.gov.uk). On 1st April, 2010, a statement with a further consultation was issued to the mobile number porting process in which the porting time took one day (berr.gov.uk). The standard Value Added Tax rate is 17.5%, however, it will be increased to 20% in January 2011 (hmrc.gov.uk). The call tariffs indicate that calls may be charged by any residential or business package selected as the Charge Costing Package (telecom-tarriffs.co.uk). This implies that the market for mobile phone users is likely to be damaged as the call rates may rise because of the increases in tariffs mentioned above. Apart from that, the mobile operator companies are likely to introduce new packages to attract more consumers. This would directly have an impact on Vertigo as the demand for cell phones would rise pertaining to offers and packages introduced by Ope rators (Gruber, 2005). PART B 1. Financial Budget and Forecast for 3 year (Apple iphone; Assumed) The sales forecast is assumed on the basis of iPhone units sold by Apple in the past year when it was launched. As reported by O2, Vodaphone, Tesco and Apple’s management, iPhones were set to reach 2.5 million units. Furthermore, 10.7 million units were sold throughout Europe and 11 million units are expected to be sold in the year 2010 therefore, these figures are assumed to be the UK’s share in the latter. (ipodrepublic.com; Wordpress.com). Prices are kept constant however; they are adjusted with an expected inflation rate of 4%. The Annexure at the end of this