Mobile business, competitive advantage creation and suitable costing methods

The development and evolution of the internet and e-Business has contributed to a significant change in markets, trade and improvement in relations between businesses and consumers. In order to respond to these new conditions and ensure their survival, businesses must embrace technological change. An increasing number of mobile phone users require more complex applications. These modern activities endow companies with an increasing level of profit. Therefore the mobile industry and e-business could play a key role in redefining existing business activities as argued by Lehner, Watson and Richard in 2001. Today Mobile Business is realized through mobile electronic devices such as mobile phones, laptops, PDAs (Personal Digital Assistance) and Pagers. Due to these innovations further research is needed for understanding the complexities of the matter but also to unmask more possibilities for future business purposes.  In this new business reality, companies and organizations are called upon to choose the costing methods they will use to bring about the desired results of their strategy. This paper tries to demonstrate which of the existing costing methods are considered appropriate for implementation in this fundamentally new type of business. For these purposes, this research examines various factors ranging from detailed information to user (employee) friendliness that would allow an accounting manager to select the best method. Through the steps of selecting a costing method, this paper also examines the goals of an enterprise such as for implementation of mobile business and how the right choices affect the achievement of profits and creation of sustainable competitive advantage.

Key Words: Mobile Business, Costing Methods, Competitive Advantage