Telecommunications Industry Environment Analysis
Business Brief
Telecommunication is basically any communication over a distance, either via telephone, wireless network, computer network, radio or other means-but conventionally it has been used for telephone service. One of the most advanced forms of telecommunication has been the Wireless Telecommunication; where the information flows between two or more points that are not connected via an electrical conductor. The emergence of wireless telecommunications has made communications across continents almost instantaneous; which seemed practically impossible just a few decades ago.
Orientation to the Telecommunications Industry
Out of all the telecommunications options available, the mobile phone, also known as a cellular phone has been the most popular, with more than 4.6 billion mobile cellular subscriptions all over the world as of the end of 2012. According to the estimates from industry group CTIA - The Wireless Association; the wireless penetration in America has been steadily rising since its introduction and was approximately 104.0% by the end of October 2013. Marked by exponential growth in demand for wireless services and consolidation of the economy, wireless telecommunication services haven, stirred up the telephone industry.
The breakthrough in the modern Telecommunication Industry, i.e., Wireless Telecom providers occurred in the early 1980’s with the emergence of companies like AT&T in the USA. With this, the long distance market was open for business expansion almost immediately, but the traditional companies which operated the plain old telephone service (wire line telephone service) tried very hard to prevent these companies from entering the mar...
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Harvard Business Review website. (n.d.). Retrieved April 5, 2014 from http://blogs.hbr.org/2011/01/verizons-iphone-and-the-power/
Ivey Business Journal website. (n.d.). Retrieved April 5, 2014 from http://iveybusinessjournal.com/topics/governance/why-canada-should-adopt-mandatory-say-on-pay#.U0K3efldWSp
United Nations News Centre website. . (n.d.). Retrieved April 5, 2014 from http://www.un.org/apps/news/story.asp?NewsID=33770&Cr=Telecom&Cr1=#.U0LcTvldWSp
Bateman, Thomas S., Snell, Scott A. (2013). The External and Internal Environments (10th ed.), Management: Leading and Collaborating in a Competitive World (pp. 48-53). New York, NY: McGraw-Hill/Irwin.
RCR Wireless website. (n.d.). Retrieved April 5, 2014 from http://www.rcrwireless.com/article/20140402/carriers/verizon-wireless-tweaks-rate-plans-matches-att/
In 1990s, ground-based wireless phone service grew rapidly around the world. A key factor in the growth of wireless phones was the adoption of a single standard, known as GSM, in Europe and parts of Asia. There were 480 million cellular subscribers worldwide by January 2000 and it reached more than billions before 2005. The economy of scale that introduced will provide the extent of competitive pressure in the business environment. It helps to stimulate Iridium to consider price-performance tradeoff that offered by the substitutes and the need of product differentiation alternatives in advance.
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint, MCI, and AOL, but simultaneously the very high cost involved with entering and competing in this industry also makes it very unattractive for new entrants. These are just some of the big names who are planning to and are presently providing parts of the pipe dream that AT&T seems to seek. In this industry it is very important to have customer awareness of the line of products you carry. Most of the public hears the name AT&T or Sprint or MCI and they think telephone bills but many consumers do not realize that these companies have expanded their field of services from cellular phones to wireless web services. The reason mainly being the lack of marketing, and direct consumer advertising provided by these firms on the other line of p...
Americatel is positioned within the small to mid-sized market in the telecommunications sector. However, their primary competitors Movistar and Claro compete within the large-sized market. With only 10% overall market share, Americatel has the potential to capture additional growth as the industry growth rate is growing at 6%. To accomplish this we recommend that Americatel own their position in the small to mid-sized market by capitalizing on their competitive advantage of providing superior customer service as well as leveraging new solutions to further drive customer satisfaction.
Astonishing, over the course of 40 years the dynamic way handheld technology has evolved, from humble beginnings, in the 1970’s with Martin Cooper being the first person noted to make a cellular phone call in public to now over six out of the seven billion people have cell phone. Cellular technology in which enables people to call beyond any border and share unlimited information at any moment.
The cellular-service industry in the United States has reached maturity with AT&T, Verizon, Sprint, and T-Mobile taking the largest share of the market. Each company has
There has been an increasing demand of telecommunication services in the last few decades which has led to an all time high demand of global operations in businesses , their capital investment as well as mobilization of the resources. This has further resulted in a lot of changes in the lifestyle of the people within specific geographies that includes an increasing demand for the latest of technology as well.
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
Cellular phones carry a diverse group of users. In June 1985, there were about 203,000 cellular phone service subscribers. By June 1989, the number had exploded to 2.7 million subscribers, and by June 1995 there were mire than 26 million subscribers. When cell phones were first introduce, only people with a lot of money had them and the service was very expensive. It was a lot cheaper to stop and use the pay phone than it was to use a cell phone. Now, it is almost as cheap to use a cell phone to make a long distance call as it is to make a long distance call using AT&T.
In today’s society, smartphones have inevitably taken cellular phone sales by storm. Flip phones and home phones, with the classic 9 number keyboards, are being replaced with touch screens that allow for more interactive and advanced phones. The Apple iPhone and the Google Android are two examples of how technology is advancing the way we communicate. These smartphones, backed by each company’s unique business models, have changed the way cellular devices are used and sold.
In comparison to other telecommunication companies such as Sprint and AT&T, Verizon has a competitive advantage that is relatively easy to observe. This advantage that they possess is the company’s ability to adapt to the ever changing telecommunications market. In a statement published on the company’s website regarding their industry, “The number of American wireless customers now exceeds 290 million, a penetration rate of approximately 95 percent. “ ("Company Profile.”) They acknowledge that the market for wireless services is now saturated and now they are aiming towards new frontiers in communication.
Cell Phones: A portable phone that uses wireless technology to send and receive phone signals. This technolog...
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
During the last 10 years the development of mobile telephony is phenomenal. Now we can even access internet on cellphones. By using Wireless Application Protocol the user can access information from the internet, and the services like SMS makes the connectivity too simple.
Bateman, T.S. & Snell, S.A. (2009). Management: Leading and Collaborating in The Competitive World, New York, New York: McGraw Hill Companies. (p. 25)