UPC external analysis
1. What are the relevant customer segments; what is the size and what are characteristics of each of the segments and what are customer’s motivations and unmet needs within every segment?
Deregulation, globalization, and introduction of new technologies such as the 4G networks and VoIP have forced the telecommunications companies to reconsider their strategy, their technological base and their product portfolio. In that context, companies have tried to develop and gain access to desired capabilities and resources and expanded across national boundaries to sustain their competitive advantages.
2.
Who are the competitors?
Ziggo and UPC are the largest cable companies in the Netherlands that serves multiple regions. They represent 90% of the market. Regardless, they are not competitors, since their respective coverage areas do not overlap (Only for cable services. They are, however, competitors for Internet and calling). Furthermore, UPC cannot service clients in the other company’s distribution region, because they operate a region monopoly. Because technological developments have created new opportunities and threats for incumbents, previously distinct industries have united to introduce new substitutes, complementary products and services in the market. To maintain their competitive position, UPC gained access to new and complementary capabilities, resources and businesses. Furthermore, the major competitors of UPC are Ziggo, KPN, Telfort, TELE2, Online, and Vodafone.
UPC Ziggo
What are the different strategic groups?
Dimensions to Consider for Structural Analysis (Strategic Groups) within Industries
1. Specialization - Width of product line
2. Brand identification - Advertising
3. Product Quality
4. Cost position
According to these dimensions we can group the companies in the telecommunication industry in two groups.
1. Telfort + TELE2 + Online
Telfort
TELE2
Online
Price
€ 46
€ 45
€ 44,95
Internet speed
50 Mb/s download
Deregulation, globalization, and introduction of new technologies such as the 4G networks and VoIP have forced the telecommunications companies to reconsider their strategy, their technological base and their product portfolio. In that context, companies have tried to develop and gain access to desired capabilities and resources and expanded across national boundaries to sustain their competitive advantages.
2.
Who are the competitors?
Ziggo and UPC are the largest cable companies in the Netherlands that serves multiple regions. They represent 90% of the market. Regardless, they are not competitors, since their respective coverage areas do not overlap (Only for cable services. They are, however, competitors for Internet and calling). Furthermore, UPC cannot service clients in the other company’s distribution region, because they operate a region monopoly. Because technological developments have created new opportunities and threats for incumbents, previously distinct industries have united to introduce new substitutes, complementary products and services in the market. To maintain their competitive position, UPC gained access to new and complementary capabilities, resources and businesses. Furthermore, the major competitors of UPC are Ziggo, KPN, Telfort, TELE2, Online, and Vodafone.
UPC Ziggo
What are the different strategic groups?
Dimensions to Consider for Structural Analysis (Strategic Groups) within Industries
1. Specialization - Width of product line
2. Brand identification - Advertising
3. Product Quality
4. Cost position
According to these dimensions we can group the companies in the telecommunication industry in two groups.
1. Telfort + TELE2 + Online
Telfort
TELE2
Online
Price
€ 46
€ 45
€ 44,95
Internet speed
50 Mb/s download