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SUPPLIERS
LOW Power Threat
Suppliers are not capable of Forward Integration (No service
capability)
There are numerous suppliers in this industry such as LG,
Samsung, Motorola, Apple, etc.
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.
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.
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.
THREAT 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.
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.
Questions or Comments
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/13ever
y.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.