Cell Phone Company Analysis In The Competitive Market
EMBA690-1102B-05: Strategic Management in Dynamic Environments Phase 1 Individual Project
Professor: Kevin Grant
May 19, 2011
In my communication process with the vice president of the company, Mr. Smith, mentioned to him that I would prepare an informative report in order to help in obtaining the understanding of the cell phone industry when exploring strategic planning. The information submitted in my report will include the analysis, which is a critical component of the business plan. This is a topic that will be discussed during the final-conclusion of the board of directors. In my report, I have also discussed and assess the cell phone industry in terms of each of Porter's five (5) forces of competition. I have included an analysis on the cell phone industry, the industries overall attractiveness along with examples of different cell phone companies.
In order for all of the different existing cell phone companies, such as Cingular (now At&T), Nextel (now a part of Sprint), Sprint, Verizon, T-Mobile and MetroPCS. Besides these well-known cell phone providers, there are small cell phone competitors, which are not well known in the competitive market. In order for any of these companies to survive in the business market, they have to implement competitive strategies. A company's weakness, capabilities and strengths are all used when dealing with the competitors and implementing competitive strategies. Companies utilize the technique of competitive strategies in order to establish stability and profitability in the long term. In order for a company to experience profitability over a period, they would have to implement and achieve competitive strategy.
A reigning guru, Michael Porter, who is a professor at the Harvard Business School, stated that there are two different types of advantage in the competitive market. They are differentiation and cost leadership. From the two types of advantages, Porter has created two generic/basic competitive strategies. The cost leadership strategy is used when a company aims to become the provider for having a lower cost within the industry. Differentiation is the company's technique of providing excellent customer relations, in order to have a reputation of providing unique service to their customers. This would be a part of competing with the competitors to provide the best customer service. The customers would continue being customers, because they know that they will not find another customer service like this with no other service provider.
There is also the strategy of focus. This is used when a company designs groups of different segments. It alters its current strategy, so that it may provide the exclusion of the other segments. The focus strategy contains two things, which is differentiation focus and then there is the cost focus. There are five key forces that can be used be used by a company when determining the position in the market/industry. Porter's five key focuses is known as the, (1) new entrants; (2) buyer's power; (3) substitute products and services; (4) power of suppliers; and (5) current competitor.
In today's current population of people, I would say that there is at least 85 percent of the world's population that owns a cell phone. Of course, there are many cell phone providers in existent in order to meet the need of the consumer. This is why cell phone providers will schedule for airtime with different television stations to advertise their current promotion (sale). The only way to survive in a competitive market is to practice and implement strategies and techniques of competition. The buyers power is used by companies also as a form of competition in the competitive market. The company makes it their duty to have the consumers and their current customers not experience the impression of being forced to partake in a certain promotion or deal. The buyers...
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