Analysis of Carphone Warehouse Financial Statements Essay

Analysis of Carphone Warehouse Financial Statements - Essay Example mobile services into one single media delivery chain facilitated by the expansion of high speed wireless internet and broadband services worldwide (Pricewaterhousecoopers, 2006). This new economic era changed many industries since it pushed the demand for products for high tech product such as mobile telephones up since mobile technology became a part of the new integrated supply chain of high tech products. In the United Kingdom a major player in the communication services industry is The Carphone Warehouse Group. The emphasis of this report is to analyze the financial position, performance and prospects of this firm as well as providing a brief analysis of the accounting standards that Carphone Warehouse utilizes in its presentation its financial reports. Carphone Warehouse is the biggest player in the European market in the independent retailing of mobile phones and related services with over 2,200 retail stores across 11 countries (Carphone, 2007). The United Kingdom company established its operation in 1989 whose founder Charles Jones envision a firm that had the potential of dominating the European market with the implementation of a organic growth model. The organic growth business model is a business or economic philosophy that emphasis on steady constant growth over a prolonged period of time (Moore, 2006). An example of a booming economy that utilized this model to reach constant 10% economic growth for multiple decades is the Chinese economy. Carphone Warehouse transformed from a small mobile retailer 18 years ago, to a multinational giant in the telecommunication industry that obtain annual sales of 3.99 billion pounds in 2006 (Annual Report: Carphone, 2006). The company’s strategic focus includes a continued market share growth, value added services, building lifetime customer relationship and increasing productivity and profitability (Carphone, 2007). The mobile services industry generated global revenues of approximately 3.32 trillion dollars