- Threat of new entrants
- Bargaining powers of buyers
- Threat of substitute Products or Services
- Bargaining power of Suppliers
- Rivalry among existing competitors
In my line of industry – Telecommunications, it is inevitable that competition exists and in a fast pace dynamic industry. Mainly because it is attach to the technology advancements that it evolves. Today, data communications is almost part of our daily activity need, we opted to keep in touch very often with our peers, family and business associates. Filipinos are socially oriented human being. Technology specifically caters these needs.
PLDT has a net income of 42 Billion for 2010, much of the top 5 banks combined net income. So, What should be the reason investor will not invest into this industry.
You would notice majority of the tri-media advertising are dominated by the telecommunications company. The company has exerted its resources just to gain the critical mass of clients. In this way, we could just imagine how this topic applies to their daily menu in shaping their marketing strategy.
Now let me give you an example a dilemma that telecommunications having problem early years ago. Voice service in telecommunications have been the core product in this industry. The income generated by charging voice calls by the minute with its domestic and international interconnections. Telecommunication company compete with each other by providing most linkages and area of coverage. The company that have a bigger capitalization have taken advantage of this industry, in effect they dominated and even monopolized some services. But today, in this industry data communication network is more important, voice service became a value added service by which data connections are capable of handling voice calls. Companies invest their resources to setup network that can handle vast data transmission. Now, services in broadband have been slowly improving due to the customers demand. Different product offerings surfaced just to attract subscribers.
Small players are also starting to put up the same service as the large telecommunications company can offer. This is mainly because hardware became affordable and efficient.
In the End, Consumers service will improve with more competition around.
