Telecommunication Infrastructure Analysis
Our business- selling telecommunication infrastructure to operators in 3G industry
Our concern towards our business 1. should enter the Malaysian market especially Kuala Lumpur 2. expensive investment so it is possible to enter Malaysia market 3. our company future after 5 years
Analysis based on Porter's five-forces-model
a) Buyers (operators) –
1. Quality of product
2. Buyers power to determine quantities they need from us to operate
(We don't have freedom to make decision on quantities of product to sell so we cant determine our revenue or profit)
Two types of buyer – end user and sellers(operators) of our products
b) suppliers- 1. Risk for our company
(3 license will give to operators reasonable to believe maybe 3 operators build up the telecommunication infrastructure together due to it is government will and it will be cheaper for operators to agree upon an alliance and share the cost)
1. low level of skills and specialization 2. requirement of skill too high 3. short product life cycle ( user require for a particular season)
c) Substitute product- 3G technology changed to 4G
d) Potential new entrants-
1. Heavy investment (set up cost)
2. New technology to the location (KL)
3. Available product to support the system
4. Skeptical market demand
5. Government expectation for the high income
e) Competitive rivalry-
1. 3 competitors
2. Supply chain management
3. High technology or service
Our conclusion: after applied Porter's five-forces-model we would like to conclude that telecommunication equipment industry in Malaysia is not suitable business. It’s clearly shows high entry barriers and few customer which tightens the competition.
Dear friends correct me if I am wrong.
Any additional info please add with explanation.
Please let me know what I should be in cap square.
See you all tomorrow.
1) Overview
- A multinational company - develop telco
Our concern towards our business 1. should enter the Malaysian market especially Kuala Lumpur 2. expensive investment so it is possible to enter Malaysia market 3. our company future after 5 years
Analysis based on Porter's five-forces-model
a) Buyers (operators) –
1. Quality of product
2. Buyers power to determine quantities they need from us to operate
(We don't have freedom to make decision on quantities of product to sell so we cant determine our revenue or profit)
Two types of buyer – end user and sellers(operators) of our products
b) suppliers- 1. Risk for our company
(3 license will give to operators reasonable to believe maybe 3 operators build up the telecommunication infrastructure together due to it is government will and it will be cheaper for operators to agree upon an alliance and share the cost)
1. low level of skills and specialization 2. requirement of skill too high 3. short product life cycle ( user require for a particular season)
c) Substitute product- 3G technology changed to 4G
d) Potential new entrants-
1. Heavy investment (set up cost)
2. New technology to the location (KL)
3. Available product to support the system
4. Skeptical market demand
5. Government expectation for the high income
e) Competitive rivalry-
1. 3 competitors
2. Supply chain management
3. High technology or service
Our conclusion: after applied Porter's five-forces-model we would like to conclude that telecommunication equipment industry in Malaysia is not suitable business. It’s clearly shows high entry barriers and few customer which tightens the competition.
Dear friends correct me if I am wrong.
Any additional info please add with explanation.
Please let me know what I should be in cap square.
See you all tomorrow.
1) Overview
- A multinational company - develop telco