Generolo Jono Žemaičio Lietuvos karo akademija

Mobile communications is a booming sector nowadays, while the average revenue per user is decreasing year over year. Such tendency could create a significant risk factor for development and sustainability of mobile services in Baltics too. Development trends of the Estonian, Latvian and Lithuanian mobile markets, their demand and supply individualities, drivers, challenges and risks are analysed in the article. Predicted development scenario (till 2020) shows the growing demand for mobile services and their increasingly active usage. Operators’ challenges and several risks for supply sustainability have recognized; they have to be prevented timely by operators as well by governments and regulators.

The aim of the present article is to examine parameters of product innovations that could lead to a successful expansion of international companies to the innovation-driven market. The case of the European mobile technology company in the Korean market is analyzed by introducing a market research method and demonstrating what sort of mobile phone could be designed for the South Korean youth. Companies often declare focusing on stronger marketing and sales efforts in one particular business area or geographical region via creating, testing and introducing a new product. The reasons for failures in foreign markets in many cases are related to the lack of knowledge of this region, wrong choice of the product as well as the incapability to choose a right innovation and expansion strategy. It should not be forgotten that a technological product innovation is more readily adopted by the firms that have a market penetration strategy and hope to gain a direct advantage over the competition. The level of technological intensity, user-friendliness, style, cultural aspects, loyalty to native products as well as the level of integration of customers and clients in innovation or marketing processes are important factors while expanding to foreign markets.