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1
Industry Analysis The Mobile Phone Industry
Strategy and International Business
2
SWOT - Strengths

• High barriers to entry
• Number of subscribers is growing
• Good service offered high range of price plans
  and tariffs. 98 to 99 coverage.

3
Weaknesses

• Low customer retention.
• Lack of effective competition.
• Market reaching saturation point?

4
Opportunities

• The primary use of mobiles is now for mobile to
  mobile calls.
• 3rd Generation technologies-.
• WAP and internet technologies.
• New phones.
• Number porting and SIM unlocking(to try and keep
  current subscribers).

5
Threats

• Abuse of market power.
• New legislation.
• The 3rd Generation (3G)-.
• Lack of immediate profits.
• New companies.
• Further health scares.

6
5 Force Analysis Threat of New Entrants

• Low
• New entrants need a license to operate.
• Profits reported to dip sharply soon.
• Cost of entry determined by Gov.

7
Buyer Bargaining Power

• High
• Customers can choose provider at own will.
• Can switch easily.
• High price sensitivity.

8
Supplier Bargaining Power

• Low
• Dependence on mobile providers.
• License needs.

9
Threat Of Substitutes

• Average
• Few actual substitutes.
• Falling prices and high value added products
  represent growing threat.

10
Competitive Rivalry

• Very High
• One of the main forces within the industry.
• Deregulation, legislation and globalisation will
  increase further.

11
PEST - Political

• Oftel report on mobile phone call charges
• Government legislation on mobile phone masts

12
Economic

• License fees
• Moving towards market saturation
• Trend towards mergers and acquisitions
• Rising incomes

13
Social

• Health risks
• Location of phone masts
• Customer choice
• Redundancies

14
Technological

• 3G technology development
• Economies of scale in development of handsets and
  networks

15
In Conclusion

• Value added of key importance.
• The success of 3G.
• Outcome of reports into call prices.