The UK Telecommunication Market Industry Analysis___________________1 PESTEL Analysis of the Industry_____________________________________1 * Political factors ______________________________________________1 * Economic factors_____________________________________________1 * Social factors ________________________________________________2 * Technological factors _________________________________________2 * Environmental factors ________________________________________2 * Legal factors ________________________________________________3 Porter Five Forces: Fixed-line Telephone Industry ______________________3 * The threat of the entry of new competitors _______________________3 * The threat of substitute products or services _____________________3 * The bargaining power of customers _____________________________3 * The bargaining power of suppliers_________________________________ ____4 * The intensity of competitive rivalry _____________________________4 Porter Five Forces: Mobile Phone Industry_____________________________4 * The threat of the entry of new competitors _______________________4 * The threat of substitute products or services _____________________4 * The bargaining power of customers _____________________________5 * The bargaining power of suppliers _____________________________________5 * The intensity of competitive rivalry _____________________________5 Porter Five Forces: broadband Industry ______________________________ 6 * The threat of the entry of new competitors ______________________6 * The threat of substitute products or services _____________________6 * The bargaining power of customers ____________________________6 * The bargaining power of suppliers ____________________________________6 * The intensity of competitive rivalry ____________________________6 Vodafone UK _____________________________________________________7 Vodafone UK: Competitive Advantages _______________________________7 References _______________________________________________________8
The UK Telecommunication Market Industry Analysis:
In the last few years, some phenomenal growth has been experienced by the UK telecommunication sector. Its revenue made it one of the largest industries in the country after being able to generate £61.5bn revenue in 2007. There are many firms competing in the industry but there are only few, which can be characterized as major players. British Telecom is the oldest player among all, but recently it has been losing its market share from new vital rivals. Other than BT, Orange, Vodafone, T-Mobile, O2 and Virgin are the major players in UK telecommunication industry. (Gallacci, 2006). PESTEL Analysis of the Industry
PESTEL analysis allows clear and broad understanding of macro-environment, which controls the industry in UK. Following is the breakdown of PESTEL analysis: * Political factors
The country’s current political conditions have promoted the deregulation environment in the country. As a result, new competition has emerged in the market, which has developed more varieties for customers. Likewise, UK mobile market is expected to face new rivalry in its market from the rest of the Europe, as a result of deregulation from EU front, (Bichta, 2001). * Economic factors
The UK economy has faced a sever downturn as a result of the Global economic meltdown. The deficit ratio on GDP has reached 13% in UK development more fear on the investors and policy makers. It is about 68% of GDP and is ascending at continuous rate, as stated in the official reports on the national debt rate. This national debt ratio was 38% only three years back and it now seems that it will exceed to 100% in the coming three years (Global Economic Crisis, 2010). Numerous jobs have been lost which has decreased the purchasing power of general population. Such economic scenario plays its role in hampering growth of mobile market...