Comparative efficiency assessment and strategic benchmarking of smartphone providers with data envelopment analysis

Abstract

The purpose of this study is to conduct comparative efficiency assessment and strategic benchmarking of smartphone providers. Data envelopment analysis (DEA) is useful in examining competitive patterns of products and services. Since smartphone products are moved away from functional devices into platform products and services, the new business model focuses on perpetual dynamic value deployment beyond hardware functionality of products. In this research, DEA is utilised as a strategic decision support tool that measures the extent of firm efficiencies based on multiple year performance outcomes. DEA efficiency trend in particular is a significant indicator of a company's near future sustainability. This study is the first attempt of benchmarking smartphone industry where short–term strategy and rapid innovation precedes long term tactics and incremental improvement.