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Literature review of the cellular market

2.0: Introduction

With the worldwide cellular market reaching 4.8 billion connections (about 68% of the world population) in the first quarter of 2010 (Wireless Intelligence, 2010), an enormous market potential for Mobile commerce industry is unveiled. M-commerce, although an unfamiliar topic for many, is observed to have hit the news, good or bad, very consistently in the last couple of years (Internet Retailer, 2010). The key objective of this literature review is to provide further understanding of m-commerce together with the synthesis of existing studies and to highlight the gap in knowledge. Further, journal articles and online magazines like ‘Internet Retailer’ and ‘Mobile Commerce Daily’ focusing on various technological developments related to m-commerce in the recent times are also assessed critically. In addition to the above, a close relationship between e-commerce and m-commerce is observed in the studies (Shi and Murthy, 2003) which justify the importance of considering the already established theories in e-business for achieving this proposal’s objective. Finally, key strategies adopted by Japan and European countries on m-commerce would be reviewed briefly using the accessible industry or company data and research papers between the period 1999 and 2010. Mention what are the companies that could be compared?

2.1 Definition of M-commerce:

Broadly defined, m-commerce involves an emerging set of applications and services that people can access from their Web enabled mobile devices (Sadeh, 2002). An official definition of UK government classifies (, 2010) Mobile commerce as "a type of e-commerce conducted through mobile devices such as mobile phones...brings opportunities to small businesses to sell new services as well as to operate more efficiently". Realising the importance of an industry-standard definition and to ensure consistent terminology between all concerned parties in the value chain, the Mobile Marketing Association (MMA) released a new definition recently (Mobile Marketing Magazine, 2010). It says, "Mobile Commerce is the one or two way exchange of value facilitated by a mobile consumer electronic Device, which is enabled by wireless technologies and communication networks".

E-commerce and M-commerce:

‘E-commerce users are more likely to adopt M-commerce services’ is the outcome of the study conducted by Ackar and D’Incaur (2002). Notably, M-commerce came in to existence while E-commerce was at its peak but still in its Growth stage of the industry lifecycle (reference). This probably is a reason why M-commerce did not receive the investments and attention it deserved in its early days. This is evident from the study conducted by Chan et al (2002) which indicates that most of the initial mobile sites tend to share similar interfaces with their corresponding websites and primarily support existing customers.

Kalakota and Robinson (2001) observe that the emergence of new customer priorities and expectations had resulted in new business opportunities and market structures in the past. At such instances, entrepreneurs were found racing to create new companies to fill the perceived gaps. According to this observation, they predicted the emergence of M-commerce could put the traditional profit and revenue models at uncertain grounds and potential risk. They also illustrate the structural migration that took place in the past two decades with M-business being the latest in the market evolution (Fig1 – M-business book – Ravi Page 4).

Senn (2000 – J:50) recognized key forces driving m-Commerce emergence as – 1. Wireless-installed base, 2. Wireless Protocol Standards, 3. Ample bandwidth and two types of M-commerce applications (4. Active and 5. Passive). Senn argued that if these forces are effectively devised by the businesses, it could help them dominate the competing market space in wireless technology. However, he missed to take in to account the future trends in the wireless technology, mobile handsets, consumer confidence and so on. He gave an optimistic idea that the technology was nearly perfected and advised the businesses that the time is right for them to begin formulating application strategies while in reality it was not. This could be better explained in reference with Technology Acceptance Model (TAM) given by Davis et al (1989). TAM is an adaptation of the Theory of Reasoned Action (TRA) to the field of Information Systems (IS). TAM posits that perceived usefulness and perceived ease of use determine an individual's intention to use a system with intention to use serving as a mediator of actual system use. Perceived usefulness is also seen as being directly impacted by perceived ease of use. TRA and TAM, both of which have strong behavioural elements, assume that when someone forms an intention to act, that they will be free to act without limitation. In practice constraints such as limited ability, time, environmental or organisational limits, and unconscious habits will limit the freedom to act. (Add the diagram from the Davies Link) This was probably overlooked by Senn in his research and in particular, the ‘perceived ease of use’ factor was considered to be overhyped. Khalifa and Cheng (2002) address this gap by developing and empirically testing a model that extends behavioural theories like TAM and TPB (Theory of Perceived Behaviour by Ajzen (1985)) with new constructs representing various forms of exposure, i.e trial, communication and observation (give the diagram here pg 2). They concluded on the theoretical aspect that, ‘the verified moderating effect of exposure on the relationship between attitude and intention implies that favourable attitudes will not necessarily lead to adoption’. However, the result in the practical aspect of the experiment was found to be ambiguous as it gave a completely opposite result. It said, “With the high penetration of mobile phones and the aggressive marketing tactics of mobile carriers, exposure to mobile commerce technology is increasingly high. According to our results, such exposure is likely to facilitate the adoption of mobile commerce.” (see j -55 also TAM)

Initially, M-business was quite popular for its value adding ability (Ackar and D’Incaur, 2002) to e-business activities such as alerts for stock traders, localisation and some entertainment services. Kalakota and Robinson (2000) clarified the distinctions between the key concepts that are associated with the rise of internet. They are:

e-Commerce: Buying and selling of products and services over Web.

e-Business: All technological applications and business processes enabling a company to service an e-commerce transaction.

m-commerce: Business transactions conducted while on the move.

m-business: Application infrastructure required to maintain business relationships and sell information, services and commodities by means of mobile devices.

This value adding ability of m-business is termed as ‘m-value services’ and are classified in to five service-dependent value settings by Ackar and D’Incaur (2002) as illustrated in the figure 2 (Figure 1. The analytical framework – Page 3). However, in recent days, M-commerce is globally accepted to be the core of M-business activities. It was very evident when e-Bay revealed (try for e-bay end of year report) that, ‘despite the recession, m-commerce services has accounted for nearly £123 million worth of goods sold in the UK in the past year’. The report also claims that it is also expected to be doubled in the next three years (Article 12).

2.3 Lack of Global Standards

Kannan et al. (2001 –J2), Keen and Mackintosh (2001- J2) proposed that M-commerce is nothing but an extension of electronic commerce based on the internet. This was in support of the observation from Mullerveerse (1999 – J2) who pointed out Mobile commerce as a subset of electronic commerce. Further, Kuo and Yu (2005 –J2) went on to stress that M-commerce also amplifies the entire e-commerce market. Okazaki (2005) summarizes these views in his research by saying that M-commerce industry initially suffered due to the lack of global standards like terms, concepts, theories and revenue models for businesses. The above mentioned were rather more dependent on e-Business industry standards which mislead many businesses to loss (refer to some article here or books) and has evidently lead consumers to lose confidence in making an online transactions using their mobile which are discussed in later sections of this research work.

Okazaki (should I give ibid here?) identified that the term “M-commerce” was used without considering the specific conditions and prerequisites of what the authors were examining. While some authors considered M-commerce as just a complementary to e-commerce (Grosche and Knospe, 2002), there is also an alternative view that M-commerce should be dealt with as a self-contained strategic business unit (Dang, 2006). Wallace (2000) observed that some already are predicting an imminent collapse (what exactly is the details) of e-commerce. The arrival of M-commerce was considered to be the dormant design (Check with Anand on this topic) in the e-commerce industry lifecycle with significant number of researches optimistically reporting M-commerce as a substitute for e-commerce rather than a complementary (Reference?). Tandon et al (2003) put forth a different perspective that is popular with the businesses these days in the form of B2E (Business to Employees) and B2B (Business to Business) models. They noticed ‘M-commerce as not only a consumer-facing applications but also enterprise solutions that enable companies to operate more efficiently... generate additional revenue’. Although, there were some in-depth country specific researches on m-commerce, there were no common tool to compare the activities across countries until Dholakia et al (2006) introduced a global framework called ‘CLIP’. CLIP (an acronym for Communications (C), Locatability (L), Information (I) provision and Payment (P) processing) provides conceptual integration across various countries. The creative combinations of these four concepts or all of them are considered to be the core functions that underlie various Mobile Telecommunications services offered throughout the world. Using this CLIP framework, Dholakia provides a deeper understanding of the effective business strategies for m-commerce.

Why M-commerce?

Since its launch, M-commerce was received with mixed reactions in different countries. There were various factors (Refer here) contributing to this like the culture, Telecommunication industry set up, Government regulations, Technology advancement in the respective countries, Impact of e-commerce industry and so on. In order to understand the differences in the reception of this ubiquitous industry, it is necessary to answer the question - Why M-commerce? Looking at business perspective for this question, following may be some of the reasons which are analysed in depth in this research work. (referthisArticle8foreachpointhere?)

Increased Mobile internet Usage – More and more people are using their mobiles to access the web and UK traffic from mobile phones is already estimated to be growing 8 times faster than traffic from PC’s (Personal Computers).

Increased Exposure to customers - A Mobile site allows the companies to reach consumers even when they are shopping offline meaning more opportunities for people to purchase.

Keep up with competitors – Providing customers with more ways to interact online and getting first to market with suitable technologies gives the competitive edge over others who may be slow to react to the consumers needs.

Relatively low cost development – especially if a website is already established.

Appeal to affluent audience – 40% of mobile internet users earn more than £40,000 per year, spend more on their mobile bills and have the most up to date phones. (Reference)

Increased sales – The extra sales channel and exposure to customers shopping on the move means more sales from customers who simply cannot wait to get home to make a purchase.

Appeal to comparison shoppers – Consumers use mobile phones to search out the best deals while shopping offline an with a website optimized for handsets, the companies could be in a better position to get a slice of this business. ‘Search for Product or coupons and ticketing are the top two priorities for consumers using mobile web’ says a recent survey (givesomerefhere)

Mobile commerce as right fit for new business models – While most online retail sectors have the potential to sell via mobiles, some are especially well suited as they sell the kinds of products people need while out on the move. One of the biggest success stories has been Pizza Hut, who with its iphone app has driven $1 million in incremental sales by allowing customers to order pizza on the move (ref..).

M-commerce is realized to be a business opportunity that not only gives the competitive edge for customer engagement (Article 20) but has turned out to be a compelling need considering the future. Unlike PC or Laptops, mobile phones normally tend to be within close proximity to their owner. This makes them a uniquely valuable platform for businesses. For example businesses selling a product that is time specific, such as event tickets can add value to their offerings by reminding customers of the booking. (Article 20)

UK government’s recent initiatives like ‘Digital Britain’ and ‘Cashless Society’ encourages both the businesses and the consumers to go mobile. (ReferDigitalBritainreport). The report offers a strategic view to assist the private sector in delivering modern communications infrastructure, to promote creative industries in the digital age, to ensure people participation and so on. It also promises to bring the Next generation mobile networks that will offer very high bandwidth broadband with seamless connectivity. This ‘Next generation fixed fibre and cable networks’ have the potential to offer not just conventional high-definition video entertainment and games, but more revolutionary benefits for the UK economy and society – telepresence, e-healthcare in the home and, for small and medium sized businesses, access to cloud computing which substantially cuts hardware and application costs and allows much more rapid product and service innovation. (refersamereport)

2.2 Research Facts:

Some quick facts on the literature search performed for this proposal may be worth noting:

2.2.1 Relevant Hits:

Table1: Quick facts on Literature review search

2.2.2 Author Profiles – Less experienced authors

White papers, scholarly articles and industry analysis on m-commerce predominantly have been found to be done by Assistant professors in Information systems and Marketing department, electrical engineers, Mobile enthusiasts, graduate MBA students with specialisation in e-business and so on. Generally, the authors are found to be young or less experienced. The analysis is from 57 research papers, about 8 books on M-commerce, everyday online journals like Internet retailer and other technological journals from Journal of Business Research, Technovation, IEEE computer society, Forrester and so on.

2.2.4 Industry Participation:

In addition, industry participation in academic research is at best occasional and in many cases, rapidly developing mobile technology may not be accepted as much as practitioners expect: either because of the higher cost per service ratio, or simply because these services can easily be replaced by the wired Internet. However, Individuals’ interest in M-commerce academic research was found to be at its peak during 2002 – 2003 with plenty of articles getting published on the key advantages and opportunities.

Availability of wide range of articles since 2000 on the future potential and advantages of M-commerce bear witness the early recognition of the revenue generating scope of the industry. Although there was a huge expectation for M-commerce in the business world, very few seem to have understood the need to design a strategic business plan to implement a successful revenue generating model. Further, there has been no research work on the impacts of the small business taking advantage of the M-commerce boom.

2.5 Issues and Challenges confronting M-Commerce Industry

‘Issues and Challenges’ is undoubtedly the most individually researched subject in M-commerce industry among all with about 12% contribution in a sample of 100 most relevant M-commerce research papers (givediagram/graphgivearesearch agendatablelikeOkazakinPg162innewperspectivesarticle-J26). Tandon et al (2000- J1) attempted with one of the pioneering research papers on Issues in Mobile commerce. The focus was completely on the technology perspective and it was the period when a new technology was evolving everyday to shelve the existing ones. Further, the most widely accepted standard in Japan - DOCOMO’s I-mode could not be explored by the author as there was no information that was made publicly available. However, they were quick to predict the issues in the handset like smaller screen sizes, demand in bandwidth, security issues and uncertainties in the operating business models. The research lacked the global perspective and inferred results were very generic with neither a systematic suggestion to solve the issues identified nor a future direction for the researchers to follow up. Tarasewich et al (2002) closed this gap significantly by categorically examining the issues in to:

Mobile clients – Primarily on Hardware and Software technologies like Handset, applications etc.

Wireless Communications Infrastructure – Bandwidth, Mobile interfaces, Frequency spectrum, Licence costs of 2G/ 3G technologies and

Other Technology – maintaining contact while on the move, Pricing and Payments, Security, Global perspectives etc.

They also gave a multi dimension paradigm (fig1pag57-TarasewichJ6) that could be taken forward by future researchers in identifying the issues according to the current trends.

Privacy, Security and Trust

Grami and Schell (2004J10) put forth issues of ‘Privacy, Security and Trust’ in M-commerce as the major show stoppers while the industry dramatically advances for 4G (Fourth Generation) technology. The growth of the internet has dramatically increased the amount of data collected on the individuals sometimes even without the user’s knowledge. Such valuable information, often collected by hidden tools such as cookies and web bugs can be shared with third parties for marketing purposes and surveillance operations. The sharing of knowledge about a user’s location with others is another such Privacy issue. Although weak, Trust seals and Government regulations are the only available forces available to control such misuse of consumers’ private information by the business for commercial purposes or other Cyber Frauds. They also discuss about other security vulnerabilities like fraudulent chargeback rates on the internet which is 15 times more than POS (point-of-sale) credit card transactions and fraud risks such as Subscription Fraud and Device Theft. Finally, they conclude on the ‘Trust issue’ which is one of the major barriers to the success of m-commerce that exists even today. It is the fundamental lack of mutual faith between most businesses and consumers.

There is an ongoing crisis for RIM’s BlackBerry, a leading Smart Phone manufacturer, in major developing markets like India due to the recent militant threats. BlackBerry’s key competitive advantage is its highly secured messages which are encrypted through the communication channel and cannot be intercepted by anyone without the decrypting keys. While customers prefer BlackBerry mobiles for its unique privacy settings, Government authorities consider this to be a national security issue. RIM is forced to strike a balance between customer Privacy and National Security and hence decided to allow Indian security authorities a greater access to snoop on messages. Similar actions are expected in other concerned countries like Saudi Arabia, Indonesia, Lebanon etc. which eventually would take away RIM’s competitive advantage and it already started reflecting on RIM’s share prices (Guardian, 2010). The decline in the share price is complemented with the decline in the sales globally due to the trust factor and hence contributes to dramatic loss of confidence in the new mobile applications among the consumers.

Funk (2006J5), on the other hand, highlights the start-up problem as the key issue in western mobile internet markets. He claims that Japanese solved two of the key start-up problems and went on to explore further opportunities in the market. One among the two is choosing the ‘entertainment content with Micro-Payment systems’ and the other is ‘Internet mail that is modified for the small screens, slow speeds and low processing power of phones (called “Push–based internet Mail”)’. In contrast to the Japanese counterparts, the western service providers were slow to react on these key issues due to various cultural and social aspects.

2.6 Mobile Applications

There has been a tremendous research undergone in the area of mobile applications, their effectiveness, lifecycle, user experience and so on. Mennecke and Strader (2002) explores the evolution of the mobile applications from second generation applications like GSM (Global System for Mobile) to the anticipated fourth generation mobile technology like OFDM (Orthogonal frequency-division multiplexing) and the changes in generic to core mobile centric applications. Gerstheimer and Lupp (2004 J22) in their research paper stress on the importance of identifying the customer needs in the early phase of research and development process that can lead innovative, need-oriented and therefore market-oriented product and service concepts for 3G. They further emphasize the need for flexible and integrated modular system to produce the applications that improve customers’ quality of life and work as this is the only thing a client would pay for. They also observe ‘The right thing, at the right time, at the right place – for the right customer is the goal for future planning’. (Give the diagram in a single imageJ22). They conclude by presenting an approach based on a generic system model of “mobile Communication” from a user’s point of view and provides the social and technical knowledge base to design need-oriented service and applications concepts for 3G. Tandon et al (2003) noted the series of mobile technological evolution with their pros and cons. They also highlighted the short life cycle of these technologies (like WAP- Wireless Application Protocol, LEAP - Light Efficient Access Protocol, iMode and so on) which contributed to the very slow development of the industry. There is a big gap observed between what the technology can do today and what the consumer has been led to expect. Security concerns were unanimously remained the top priority issue in almost all the researches published thus far and the importance seems to be understood as well. Some other early identified issues were restrictions in the screen size, network capabilities, user interface convenience etc and all of them has improved at unbelievable pace in the recent years. Mennecke and Strader (2002) also extended the e-business theories to develop M-business domain model as shown in Figure 1.

Figure 1 – Domain of Mobile Commerce [Source: Mennecke and Strader (2002)]

Balasubramanian et al (2002) proposed a three dimensional categorisation of the m-commerce applications that can facilitate a systematic understanding of various m-commerce based business strategies and also can serve managers as a tool to audit their operations effectively for m-commerce opportunities. Their proposed taxonomy has the following three dimensions: The extent to which the application is a) location sensitive; b) time critical; c) controlled by the information receiver or provider. It resulted in eight categories of applications as briefed in the figure below: (Page 355- J29)

2.7 Mobile Marketing

“The future of Mobile Marketing comes down to brands being able to communicate targeted messages to niche audiences in the right language. So being able to offer marketer’s location and time based communication services on top of demographic information opens this area up to some amazing marketing possibilities, especially for building brand recognition and loyalty.” Tim Elwin, Toy Phone Media.

Mobile advertisements are increasingly becoming attractive for marketers with Juniper Research (report in 2008samenewfolder) predicting global expenditure on mobile advertising to increase from USD $1.3B in 2008 to $7.6B by 2013 year end.

Kuehnel (2008) discusses the flexibility in mobile marketing which can open up endless dimensions through WAP, MMS, SMS, Infrared, Bluetooth, Gaming and more. She focuses on two types of mobile marketing: a) Location Enhanced Mobile Marketing (LEMM): uses a person’s location to customise the advertising and to create campaigns that are more relevant to the individual and providing an entertaining and unique way of targeting customers. b) Permission Marketing: meaning that consumers are specifically giving advertisers their consent to send and receive information. Some of the key advantages are found to be: Low cost for operators, customer loyalty, Improves brand salience, Quick return on Investment, Tailored, Specified and relevant marketing depending on consumer. AddthedighereFig1 <ADDotherarticles_from_thesamefoldermore>

2.8 Mobile Payments and Billing systems

Chou et al (2002) employed the Analytic Hierarchy Process (AHP) to evaluate the performance of four e-payment systems (Credit card, stored value card, smart card and telecommunication bill) and attempts to recommend the best suitable payment system for m-commerce. Although, they come up with empirical proof that ‘stored value card’ has the highest performance among the four, the experiment is completely based on e-commerce. There seems to be no convincing justification on how this result could be suitable for m-commerce transactions. Dahlberg et al (2007) identifies variety of payment scenarios such as ‘payment for digital content (eg., ringtones, news, games, music and so on), tickets, parking fees and transport fares, or to access electronic payment services to pay bills and invoices’. They also highlight massive failed attempts in this field as hundreds of mobile payment services that were available in EU countries and listed in the ePSO database in 2002 have been discontinued. Although it is understood that Payment system is a key to m-commerce success, there has been very limited research in this area.

Dang and Phan (2009) with a keen focus on non-repudiation problem, proposed an extension of existing mobile payment models to introduce an extended mobile payment service (EMPS) model, which is based on assumptions about the cooperation between mobile network operators and financial institutions to deal with different payment amounts ranging from micro to macro payment. According to EMPS model (Liu et al, 2005), payment amounts are broadly categorized in micro and macro payments. Micro payment refers to small purchases, usually less than €10 and macro payment is about large purchases over €10. EMPS assumes that MNO (Mobile Network Operator) and FI/B (Financial Institution/ Bank) will collaborate on payment phase. Micro payment has low requirements for security but cost efficient, hence it is reasonable to ask MNO to charge customers through their mobile phone bills. This type of payment and billing was offered by Japanese mobile operators like DOCOMO and become very popular among the consumers as they trusted the method to be straightforward and less risky. On the other hand, Marco payment requires higher security level, thus it should be paid by customer’s bank account or card. FI/B with a lot of experience in payment services and risk management will be responsible for macro payment in most of the countries (Dang and Phan, 2009).

In a survey conducted by Bloor research (2004) among the European mobile users, 80 percent of the respondents expressed willingness to pay for a range of series with their phone. However, it is said that among those who used phones to make purchases, around 40% of m-commerce transactions experienced errors. Further, 45% of the mobile content providers in EU were said to have described the existing m-commerce payment systems as poor and inadequate. The mobile content providers are concerned that ‘the network operators do not possess the business systems required to support their needs and consider the situation to be unacceptable.’ The survey also found the Billing system to be inadequate, lack in standard while customers look for more flexible and easy to handle system.

<Recent Improvements by Paypal and Verisign are to be added> <Article 4 about M-wallet to be added>

2.9 Consumer effect

Z1 – Security issues and consumer Confidence

With ref to Article 2 – Almost half issues in 2004 are Web related. Hence consumer confidence is low for Mobile web applications. (Data released by secureTest a leading UK testing firm.)

With ref to Article 3 – there was an overwhelming response to use their mobile to do the payment. However, more than 40 % of them experienced errors while trying to do the transaction... and hence

2.10 Business Dilemma/ Hesitancy (include Strategies suggested for Business)

2.11Comparisons – M-commerce in Japan and UK

Attempts to explain the success of I-Mode in Japan have been a dominant theme of research in m-commerce. Socio-cultural factors alone are unable to explain this success, which to date has not been replicated elsewhere; I-Mode’s rapid and widespread adoption is due to a combination of factors: the high market penetration of NTT DoCoMo, the receptivity of Japanese consumers to new technology, the low penetration of fixed-line internet connections in Japan at the end of the 20th century and, most importantly perhaps, the prohibition of calls on public services such as trains and buses, which encourages the use of I-Mode SMS and e-mail service (Harris et al, 2005). Quayle (2002) expressed surprise to note Japanese finding the fixed internet unreliable over Mobile Payments where the transactions are simply added to the monthly bill.

Henten et al. (2003) compare the developments of mobile services in Europe, Japan and South Korea and suggest technology, economy, market development and structure, marketing, socio-cultural elements, and policy intervention and regulation as the factors of explanation. Bohlin et al. (2003), on the other hand, present new policy implications for future European mobile commence through analysing the success factors in Japanese mobile Internet (Harris et al, 2005). Baldi and Thaung (2002) also attempted to produce strategies for Europe by comparing Japan’s Imode and Europe’s WAP applications using a Reach and Richness Framework. However, these comparative studies are observed to be dependent on assumptions that were outdated at unexpectedly faster pace resulting in these studies being of little or no use. In an industry dominated by Technology, product lifecycle is generally observed to be shorter with a dominant design or a disruptive technology arriving at random intervals (Bower and Christensen, 1995).

Many innovations seems to have started in the UK like the m-wallet schemes by Simpay, Qpass etc and the pay and park scheme by ParkMobile service but still it did not gain as much popularity that was expected to.. If it was received so well in the initial stages and popular among the consumers, why there weren’t many takers from Business side? Why it hasn’t improved since then? What did the government do to promote this? What are the factors behind this for the failure and what’s the way forward?

UK fastest to adopt to technology, Article 12 says that ebay uk consumers bought more in a month than what French bought in the complete 2009.

Change problem is resolved here. Quick, supports cashless society by UK? (Ref Article 6). The cashfree approach is flexible as you pay only for the time you have your car parked.. if it is a short time parking for only 20 minutes.. you need not pay for the complete hour.. just pay for 20 minutes and Scan out while you go back..

Some of the major obstacles were found to be (Given in Article 7 – eEurope 2005).

See Journal 2 for consequences of heavy 3G licences cost.. As rightly predicted... there were obstacles due to heavy 3G licences, Banks taking a more laid back approach (need investigation on what does this mean?) and wanting to avoid Disintermediation which stopped the completion and there by higher costs... and eventually lowering the demands and vice versa. So, it is not that there were not proper business ideas to drive the m-commerce but there were other unavoidable obstacles which were not taken seriously although the issues were known.

Journal 2 – Page - 1349 – 3G operators play a very imp role.

Recession as another obstacle??? YES! (Article 7 is very good) s

From Article 8 - UK traffic from mobile phones it already estimated to be growing 8 times faster than traffic from PC’s.

Article 8 says – There is a high spending power to more than 40% of the pple... and earn about £40,000 per UK!

Article 8 further gives a clue to say that pple should make use of First to market advantage... but are pple actually trying to exploit this or they are doing a wait and watch approach? Are they exploiting this as a Blue ocean or waiting for someone else to jump in to the ocean and take the risk and wait for the second mover advantage? [Good to have a look at the Blue ocean article from Strategy... ]

Article 13 has some stats on UK or Brits MCommerce activity.

UK Market capitalisation is given in Article 12... on Mcommerce..

UK pple prefer to buy through mobile websites rather than from a Mobile apps.. this may be related to the Iphone market share in UK. Hence there is a strong compulsion to improve the usability (Exp.) of the mobile websites.

Some more positive points on UK Market – Article 15.. Business showing some improvements 4 the future.

Japan – Article 50 B – about diffusion and the diagram in page 733 – is must!

2.12 Recent Trends (Technology)

F1:Smart Phones Entry

Article 9 gives fact on the percentage of Smartphone users using the Internet than comparing to the non smart phone consumers. Users had a very horrible time in the doing their purchases.. they get annoyed and tough to complete the purchase. Time consuming and hence they prefer to switch on their laptops and quickly complete the same process that they would do in a mobile... so the chance of repeat consumers is lacking... which is natural..

Article 13 gives suitable reasons of how the recent popularity gained by Amazon and Ebay in Mcommerce and what are profits that they are gaining..

2.13 Gap?

Article 10 is good for this topic. Some M-commerce strategy for the future in an intelligent manner... Another strategy generating revenue on Adult content which is considered to be popular as this gives the confidentiality to pple...

Introduce money saving potential attraction.. break the dawn of M-commerce... (article 11)

Discuss the lifecycle of the industry... Dormant design in place? (Article 11)

Security is still an major issue all the time.. BB security issue could be discussed here..

Now a days business recognize the important and go for Phone specific application like BlackBerry, Iphone apps from Amazon or Ticket Master etc... (article 13)

Generic advice of how the Business could decide if M-commerce is right for their business or rather see the viability of profitability thro’ mcommerce.

Educate pple on the security features (Ref Article 14)

Use ADD1 Notes Page from old notebook...

Mcommerce - Is it a blue ocean or something else? Any nice books?

Nice points in Article 20 (H)

Nice points in Article 16 – Saying ‘Are we there yet?’

2.14 Conclusion

Despite the rapid proliferation of Internet-enabled mobile handsets, empirical research has been undertaken only in a limited number of research areas (Okazaki 2005). Important progress has been made in mobile Internet and SMS-based mobile advertising adoption, but other important topics, such as e-commerce and m-commerce comparison, methodological issues, m-commerce as a revenue generating model, strategies comparison between Japan, being the most successful in m-commerce implementation and other countries, have rarely been addressed.

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