Cogeco Porters 5 forces
Criteria – Threat of New Entrants
Yes (+)
No (-)
Comment
1. Do large firms have a cost or performance advantage in your segment of the industry?
Yes
There is a fierce price and performance competition in the telecommunication industry. All the big players aim to provide services at cheaper costs and make high performance promises in order to develop an integrative relationship with the customer.
2. Are there any proprietary product differences in your industry?
No
The products are not propreitary but there are different value added packs and services that vary but competitors seem to adopt these services quickly.
3. Are there any established brand identities in your industry?
Yes
The telecommunications industry is very much similar to that of carbonated beverages in these terms. The established brand identities occupy 98% of the industry space resulting in intense competition among them. (Rogers, Bell, Telus etc. However, we discussed Shaw communications and Sasktel for this particular project)
4. Do your customers incur any significant costs in switching suppliers?
Yes
In some cases, Cogeco offers services that are fixed contracts and a significant cost would be incurred if the customer decides to break the contract and approach another cable provider.
5. Is a lot of capital needed to enter your industry?
Yes
Marketing is a primary component in this industry which indicates that the cost of customer acquisition is high. The materials, labor and overhead costs are relatively high as well. Hence, its highly uncertain for a new brand to enter the space without dumping millions of dollars in cash.
6. Does the newcomer have any problems in obtaining the necessary skilled people, materials, or suppliers?
Yes
The cost of materials is directly related to the quantity required. Labour acquisition costs may not be high in terms of customer service but departments like management, administration, accounting and R&D that require skilled labor are not easy to
Yes (+)
No (-)
Comment
1. Do large firms have a cost or performance advantage in your segment of the industry?
Yes
There is a fierce price and performance competition in the telecommunication industry. All the big players aim to provide services at cheaper costs and make high performance promises in order to develop an integrative relationship with the customer.
2. Are there any proprietary product differences in your industry?
No
The products are not propreitary but there are different value added packs and services that vary but competitors seem to adopt these services quickly.
3. Are there any established brand identities in your industry?
Yes
The telecommunications industry is very much similar to that of carbonated beverages in these terms. The established brand identities occupy 98% of the industry space resulting in intense competition among them. (Rogers, Bell, Telus etc. However, we discussed Shaw communications and Sasktel for this particular project)
4. Do your customers incur any significant costs in switching suppliers?
Yes
In some cases, Cogeco offers services that are fixed contracts and a significant cost would be incurred if the customer decides to break the contract and approach another cable provider.
5. Is a lot of capital needed to enter your industry?
Yes
Marketing is a primary component in this industry which indicates that the cost of customer acquisition is high. The materials, labor and overhead costs are relatively high as well. Hence, its highly uncertain for a new brand to enter the space without dumping millions of dollars in cash.
6. Does the newcomer have any problems in obtaining the necessary skilled people, materials, or suppliers?
Yes
The cost of materials is directly related to the quantity required. Labour acquisition costs may not be high in terms of customer service but departments like management, administration, accounting and R&D that require skilled labor are not easy to