The intensity of rivalry within the mobile telecommunications industry

The main substitutes in the wider telecommunications industry in Kenya are calling cards, internationally or foreign- managed Vo P services, satellite internet, satellite phones and NGNs.

According to Porter, Ketels, and Delgado the financial strength of the industry players gives an important indication of their power and hence their ability to pressure their rivals. Established firms like Verizon are aggressive in competing in the market, thereby weakening the effects of new entry in the industry.

rivalry in telecommunication industry

United States nternational University-Africa. Furthermore, this external analysis identifies the high aggressiveness of firms as a determinant of the threat of new entrants.

porters five forces in telecom industry

Shannon, P. Such proposals will unduly impact the operators ability to respond to market forces and to compete fairly Oloko et al.

Competitive strategies adopted by Safaricom Kenya limited to tackle competition. In this external analysis, Verizon Communications, Inc. Maina, D. Competitiveness Review, , -. In this case, the moderate bargaining power of suppliers of Verizon Communications, Inc. Operators may therefore have to stay in one area of telecommunications service provision despite earning low or negative returns. Constraints to expansion of the Telecommunication sector in Kenya. The negligibility of switching costs for buyers is also a critical factor when investigating the power of the buyer. For example, in the business operations of Verizon Wireless, the conditions of the wireless telecommunications industry are analyzed to determine the impact of external factors on the company. Also, this external analysis determines the intensity of each of the external factors and how they differ in their significance to the strategic approach of Verizon Wireless. The following external factors contribute to the moderate bargaining power of customers on Verizon and the telecommunications industry environment: Low information asymmetry strong force Moderate switching costs moderate force Moderate price sensitivity moderate force The low level of information asymmetry corresponds to the high quality of information that customers can access to know about products in the market. The Global Competitiveness Report — , -.

Unfavorable government regulations: National government may exert pressure on the freedom of the telecommunications sector in the name of security, consumer protection and other legal concerns. Christoph, S.

Competitive rivalry affects the telecommunications industry environment by imposing challenges on companies in growing and maintaining their market shares. United States nternational University-Africa. For example, Verizon Communications, Inc. References Dobbs, M. While the threat of entry and power of buyers also having a significant impact, the power of suppliers is of very limited impact. Li, F. Strategic management journal, , -. Gitonga , notes that contact centers are no doubt a marketing tool that all the telecommunications companies use to portray efficiency in customer care. EEE Transactions on neural networks, , -. Management personnel can use this external analysis to determine the appropriateness of the strategies of Verizon Communications, Inc. The main substitutes in the wider telecommunications industry in Kenya are calling cards, internationally or foreign- managed Vo P services, satellite internet, satellite phones and NGNs. Kenya boosts better mobile penetration in the East African region. European Journal of ndustrial Relations, , -. For instance, Verizon Wireless and other firms aggressively compete through marketing campaigns and technological upgrades. Mauri, A.
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Porters 5 forces for mobile industry