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SUPPLIERS  LOW Power Threat  Suppliers are not capable of Forward Integration (No servicecapability)  There are numerous suppliers in this industry.

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Presentation on theme: "SUPPLIERS  LOW Power Threat  Suppliers are not capable of Forward Integration (No servicecapability)  There are numerous suppliers in this industry."— Presentation transcript:

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2 SUPPLIERS  LOW Power Threat  Suppliers are not capable of Forward Integration (No servicecapability)  There are numerous suppliers in this industry such as LG,Samsung, Motorola, Apple, etc.

3 BUYERS  LOW Power Threat  Consumers always want the newest product available to them so purchases are made very frequently.  Customer loyalty is high in this industry.  Wireless providers make switching providers very difficult with 2-year contracts containing high termination fees.

4 SUBSTITUTES  LOW Power Threat  Products from other industries do not offer superior value propositions to satisfy buyer’s needs.  Computers and tablets (i.e. the iPad) offer many of the same functions/applications as cell/smart phones, but still can not meet the core competencies of them.  Has the possibility of changing to a high power threat in the future.

5 RIVALRY  HIGH Power Threat  This industry consists of only a few dominating competitors, but has numerous smaller providers.   When one competitor releases a new product or technology, the others are quick to imitate.

6 THREAT OF ENTRYTHREAT OF ENTRY  HIGH Power Threat  The industry has seen a large increase nonconventional wireless devices (i.e. tablets, smart phones, and wireless connectivity cards)  Tablet vs. Smart phones  Data plan revenue accounted for $41.5 billion dollars in 2009.

7 EXPECTED PROFITABLITY  There are 3 LOW force threats in total concluded from the Porter’s 5 Forces Analysis of the Wireless Telecommunication Industry.  The expected profitability of the average rival on all Key Success Factors in this industry is about EQUAL to cost of capital.  The profitability in this industry, overall, is moderately attractive.

8 Questions or CommentsQuestions or Comments

9 Sources  Darlin, Damon. "The High Cost of Loving Your Phone." www.nytimes.com. New York Times, 11 June 2010. Web. 5 Apr. 2011. http://www.nytimes.com/2010/06/13/technology/13every.html http://www.nytimes.com/2010/06/13/technology/13every.html  Thormahlen, Casey. "Wireless Telecommunications Carriers in the US." Ibis World.51332 (2010): 1-52. Web. 29 Mar. 2011.  Moorman, James. "Telecommunications: Wireless." Standard & Poor's Industry Surveys (2011): N. pag. Web. 5 Apr. 2011.


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