Assess The Attractiveness Of The Telecommunication Industry In 1998 Case Study

1986 Words 8 Pages
Question 1: Assess the attractiveness of the Telecommunication Industry in 1998? (50%)

According to Michael E. Porter’s five forces of analysis we can obtain the opportunities, threats and profitability in Telecommunication Industry.

o THREAT OF NEW MARKET ENTRANT.

• In 1998 Telecommunication Industry was duopolistic. Manipulated by Eircell (now 02) and Esat Digifone (now Vodafone). Even though Eircell had more market share both the companies enjoyed benefits, profitability and growth in the market.
• Eircell and Esat Digifone possessed no threat of new market entrant because:
1. There were regulations before December 1998.
2. Huge barriers.
3. Huge amount of capital is required to enter Telecommunication Industry. One requires setting
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The consumer bargaining power in 1998 was weak.

Question 2:What was Meteor’s strategy when they entered the market? What factors caused it to change?

As wisely quoted by Jake Welch (was the CEO and chairman of General Electric) “A strategy is something like, an innovative new product; globalization, taking your products around the world; be the low-cost producer .A strategy is something you can touch; you can motivate people with; be the number one and number two in every business. You can energize people around the message.”

Just that way “Meteor Mobile Communications, which is the third mobile phone service provider in Ireland. Since its launch in February 2001 it has grown subscriber numbers to one million and over 22 percent market share. Meteor achieved this through its value-driven strategy. “Through Donald C. Hambrick’s approach we can know all the parts of Meteors strategy.
There are five elements to the approach.
• Arenas
• Vehicles
• Differentiators
• Staging
• Economic logic

Arenas: It refers to the places where the industry wants to compete in taking into consideration the external environment such as type of product, geographical distribution
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When we look back in time telecommunication network was not considered as important as Mobile brands, but now since the development of Internet, 3G and invention of smartphones telecommunication network also plays a vital role in our daily usage of phones.
• In the upcoming years we will witness replacements of networks 3G and 4G with better and stronger networks.
• Apart from that mobile brands and telecommunication networks will always be complimentary to each other.
• “ For businesses, greater digitization supports increased revenues, lower costs and better access to consumers and customers. It is changing how businesses market themselves, provide services and communicate with customers including a growing reliance on social media. It is also changing how businesses manage and organize their resources including flexible working practices with an emphasis on personal productivity which does not always need to be office based.”(UPC)
• “For consumers, increased digitization means better delivery of education, technological literacy, enhanced employment prospects and greater access to public and commercial services. It also means more community engagement and improved well being, including the delivery of health related information and

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