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Industry Analysis: The Mobile Phone Industry Strategy and International Business.

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Presentation on theme: "Industry Analysis: The Mobile Phone Industry Strategy and International Business."— Presentation transcript:

1 Industry Analysis: The Mobile Phone Industry Strategy and International Business

2 SWOT - Strengths High barriers to entry Number of subscribers is growing Good service offered – high range of price plans and tariffs. 98% to 99% coverage.

3 Weaknesses Low customer retention. Lack of ‘effective’ competition. Market reaching saturation point?

4 Opportunities The primary use of mobiles is now for mobile to mobile calls. 3 rd Generation technologies-. WAP and internet technologies. New phones. Number porting and SIM unlocking(to try and keep current subscribers).

5 Threats Abuse of market power. New legislation. The 3 rd Generation (3G)-. Lack of immediate profits. New companies. Further health scares.

6 5 Force Analysis – Threat of New Entrants Low: New entrants need a license to operate. Profits reported to dip sharply soon. Cost of entry determined by Gov.

7 Buyer Bargaining Power High: Customers can choose provider at own will. Can switch easily. High price sensitivity.

8 Supplier Bargaining Power Low: Dependence on mobile providers. License needs.

9 Threat Of Substitutes Average: Few actual substitutes. Falling prices and high value added products represent growing threat.

10 Competitive Rivalry Very High: One of the main forces within the industry. Deregulation, legislation and globalisation will increase further.

11 PEST - Political Oftel report on mobile phone call charges Government legislation on mobile phone masts

12 Economic License fees Moving towards market saturation Trend towards mergers and acquisitions Rising incomes

13 Social Health risks Location of phone masts Customer choice Redundancies

14 Technological 3G technology development Economies of scale in development of handsets and networks

15 In Conclusion… Value added of key importance. The success of 3G. Outcome of reports into call prices.


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