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Industry Analysis: The Mobile Phone Industry Strategy and International Business
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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.
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Weaknesses Low customer retention. Lack of ‘effective’ competition. Market reaching saturation point?
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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).
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Threats Abuse of market power. New legislation. The 3 rd Generation (3G)-. Lack of immediate profits. New companies. Further health scares.
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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.
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Buyer Bargaining Power High: Customers can choose provider at own will. Can switch easily. High price sensitivity.
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Supplier Bargaining Power Low: Dependence on mobile providers. License needs.
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Threat Of Substitutes Average: Few actual substitutes. Falling prices and high value added products represent growing threat.
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Competitive Rivalry Very High: One of the main forces within the industry. Deregulation, legislation and globalisation will increase further.
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PEST - Political Oftel report on mobile phone call charges Government legislation on mobile phone masts
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Economic License fees Moving towards market saturation Trend towards mergers and acquisitions Rising incomes
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Social Health risks Location of phone masts Customer choice Redundancies
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Technological 3G technology development Economies of scale in development of handsets and networks
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In Conclusion… Value added of key importance. The success of 3G. Outcome of reports into call prices.
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