Porter's Five - Mobile Communication
Analyze any industry of your choice in Turkey ,using Porter’s Five Forces industry analysis framework.
Mobile Communication Market.
The Ministry of Transportation and Information Technologies and Communications Authority (ICTA) is an independent telecommunications regulator with financial and administrative independence in Turkey. It has an authority to grant licenses and set fees in the sector.
Turkcell operation was a beginning of GSM-based mobile communication in Turkey in February 1994. Telsim was number two mobile operator in 1994 and the only alternative to Turkcell until 2000, then in 2006 it joined to Vodafone Group as Vodafone Telekominikasyon A.Ş. Turkcell is not only the leading operator in Turkey, but is also the biggest GSM operator in Europe in terms of subscriber numbers. (http://www.turkcell.com.tr/en/AboutTurkcell/corporateInfo/companyHistory). Vodafone is the world’s largest mobile telecommunications company measured by revenues. Avea is the youngest operator of Turkey and has a nationwide customer base. It was established in 2004 as “TT&TIM İletişim Hizmetleri A.Ş.”, then replaced business name with “Avea İletişim Hizmetleri A.Ş.". The number of total mobile subscribers was just 80000, in December 2010 total of 62 million mobile subscribers. Mobile market shares based on subscribers are 54.19% - 33,47 million Turkcell, 27,01% - 16,68 million Vodafone and 18.8% - 11,62 million Avea. (http://www.btk.gov.tr/Yayin/pv/ucaylik10_4.pdf, 2010, p.43 – p.64) To understand the situation five forces analysis will assume five important forces that determine competitive power in a business situation:
1. Threat of New Entry.
This force examines how easy or difficult it is for competitors to join the marketplace in the industry being examined.
In Turkey, there are 3 mobile network operators: Turkcell, Vodafone and Avea. The last licence by ICTA was given in 2000 – it is a very low probability that new licenses would be given. The mobile
Mobile Communication Market.
The Ministry of Transportation and Information Technologies and Communications Authority (ICTA) is an independent telecommunications regulator with financial and administrative independence in Turkey. It has an authority to grant licenses and set fees in the sector.
Turkcell operation was a beginning of GSM-based mobile communication in Turkey in February 1994. Telsim was number two mobile operator in 1994 and the only alternative to Turkcell until 2000, then in 2006 it joined to Vodafone Group as Vodafone Telekominikasyon A.Ş. Turkcell is not only the leading operator in Turkey, but is also the biggest GSM operator in Europe in terms of subscriber numbers. (http://www.turkcell.com.tr/en/AboutTurkcell/corporateInfo/companyHistory). Vodafone is the world’s largest mobile telecommunications company measured by revenues. Avea is the youngest operator of Turkey and has a nationwide customer base. It was established in 2004 as “TT&TIM İletişim Hizmetleri A.Ş.”, then replaced business name with “Avea İletişim Hizmetleri A.Ş.". The number of total mobile subscribers was just 80000, in December 2010 total of 62 million mobile subscribers. Mobile market shares based on subscribers are 54.19% - 33,47 million Turkcell, 27,01% - 16,68 million Vodafone and 18.8% - 11,62 million Avea. (http://www.btk.gov.tr/Yayin/pv/ucaylik10_4.pdf, 2010, p.43 – p.64) To understand the situation five forces analysis will assume five important forces that determine competitive power in a business situation:
1. Threat of New Entry.
This force examines how easy or difficult it is for competitors to join the marketplace in the industry being examined.
In Turkey, there are 3 mobile network operators: Turkcell, Vodafone and Avea. The last licence by ICTA was given in 2000 – it is a very low probability that new licenses would be given. The mobile