Telecom Industry - Five Forces Analysis

Telecom Industry - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Large industry size (Telecom Industry) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Telecom Industry) Government policies and regulations can dictate the level of competition within the industry. When...

Bargaining Power of Suppliers

Threat of Substitutes

Limited number of substitutes (Telecom Industry) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

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low switching cost Low switching cost
Buyers require special customization (Telecom Industry) When customers require special customizations, they are less likely to switch to producers who have...
Limited buyer information availability (Telecom Industry) When buyers have limited information, they are at a disadvantage in negotiations with sellers....
Product is important to customer (Telecom Industry) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Telecom Industry) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (Telecom Industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
High sunk costs limit competition (Telecom Industry) High sunk costs make it difficult for a competitor to enter a new market, because they have to...
Strong brand names are important (Telecom Industry) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Telecom Industry) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Industry requires economies of scale (Telecom Industry) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Patents limit new competition (Telecom Industry) Patents that cover vital technologies make it difficult for new competitors, because the best...
Geographic factors limit competition (Telecom Industry) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Telecom Industry) It takes time and money to build a brand. When companies need to spend resources building a brand,...
High switching costs for customers (Telecom Industry) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Telecom Industry) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Telecom Industry) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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