Porter Five Forces
Porter Five Forces Analysis of Pakistan Telecommunication Authority
Assignment Presented to:
Date: 29/08/2013
Introduction
The Porter’s Five Forces is a simple tools and powerful tool that make you understand that where the actual power lies in the industry. It makes you understand the weight of industry’s current position and the future strength and position of that industry.
If you have clear understanding of industry that where the power lies you can get good advantage of the situation, you can also reduce your weakness to stay in industry and you can stop moving in wrong way and stop taking wrong steps. This will make Porter’s five forces an important part of your making decision.
PTA (Pakistan Telecommunication Authority) Profile
The Pakistan Telecommunication Authority is dealing with following segments.
1. Mobile Services
2. Basic Telephone service (LL)
3. Broadband and Value Added Services
Mobile cellular services contain all the cellular industry. Basic Telephone Services includes the Landline and Wireless Telephone services where the Broadband and Value Added Services covers the entire ISPs and Value Added Services covers services such as prepaid card phone.
Five forces looks at five key areas namely threat of.
New Entry
Power of Buyers
Power of Suppliers
Threat of Substitutes
Competitive Rivalry
Threat of New Entry
As government of Pakistan is showing interest in telecommunication sector and awarding new licensees to new cellular companies so it means the threat of new entry is high.
But the cost of developing new company is in billions of dollars so that makes the new entry is low.
The new companies needs to compete well established companies so they need to have well distributions and good network of franchises so threat of new entrant is high in this case.
Bargaining Power of Buyers
Power of buyer is high in telecommunication sector. There are six competitors in market and they are
Assignment Presented to:
Date: 29/08/2013
Introduction
The Porter’s Five Forces is a simple tools and powerful tool that make you understand that where the actual power lies in the industry. It makes you understand the weight of industry’s current position and the future strength and position of that industry.
If you have clear understanding of industry that where the power lies you can get good advantage of the situation, you can also reduce your weakness to stay in industry and you can stop moving in wrong way and stop taking wrong steps. This will make Porter’s five forces an important part of your making decision.
PTA (Pakistan Telecommunication Authority) Profile
The Pakistan Telecommunication Authority is dealing with following segments.
1. Mobile Services
2. Basic Telephone service (LL)
3. Broadband and Value Added Services
Mobile cellular services contain all the cellular industry. Basic Telephone Services includes the Landline and Wireless Telephone services where the Broadband and Value Added Services covers the entire ISPs and Value Added Services covers services such as prepaid card phone.
Five forces looks at five key areas namely threat of.
New Entry
Power of Buyers
Power of Suppliers
Threat of Substitutes
Competitive Rivalry
Threat of New Entry
As government of Pakistan is showing interest in telecommunication sector and awarding new licensees to new cellular companies so it means the threat of new entry is high.
But the cost of developing new company is in billions of dollars so that makes the new entry is low.
The new companies needs to compete well established companies so they need to have well distributions and good network of franchises so threat of new entrant is high in this case.
Bargaining Power of Buyers
Power of buyer is high in telecommunication sector. There are six competitors in market and they are