What Are The Porter's Five Forces Analysis Of The French Mobile Market?
Question 1:
The French Mobile market is one of the largest in Europe and as of 2013, is said to be worth €15 billion with almost 77 million subscriptions (France - Mobile Market Insights, Statistics and Forecasts, n.d). There are three network operators that offer the full range of telephone and data services, while an increasing number of mobile virtual network operators (MNVOs) compete in the low-cost sector. The market is heavily dominated by three major network operators namely Orange, SFR and Bouygues Telecom. Free Mobile is looking to challenge the three market leaders by launching commercial services since 2012 which has placed much pressure main players (France - Mobile Market Insights, Statistics and Forecasts, n.d).
Question 2:
Porter Five Forces Analysis is a framework to analyze the level of competition within an industry and business strategy development (Porter's Five Forces, n.d).
Five Forces Analysis for France as below:
Before Iliad’s entrance into the market, the three main players, namely Orange, SFT and Bourges Telecom dominated the market. Hence, supplier power was high as there were not many suppliers available and customers were dependent on their product and services. They were able to set the prices as they please and customers have no choice but to go along with it. …show more content…
While the three companies were able to have control of the market, but due to their high prices, threat of new entrants, especially those that can offer much cheaper alternatives will be high. In 2002, negotiations between the French Government and France Telecom fell through that allowed Iliad to take advantage of the situation and offered fast DSL and broadband pipes to cover different services (Iliad: FreeMobile To Challenge The French Mobile Incumbents, 2012). Thanks to this, Free Mobile was able to pave a way to apply for the fourth mobile network license auctioned by the
The French Mobile market is one of the largest in Europe and as of 2013, is said to be worth €15 billion with almost 77 million subscriptions (France - Mobile Market Insights, Statistics and Forecasts, n.d). There are three network operators that offer the full range of telephone and data services, while an increasing number of mobile virtual network operators (MNVOs) compete in the low-cost sector. The market is heavily dominated by three major network operators namely Orange, SFR and Bouygues Telecom. Free Mobile is looking to challenge the three market leaders by launching commercial services since 2012 which has placed much pressure main players (France - Mobile Market Insights, Statistics and Forecasts, n.d).
Question 2:
Porter Five Forces Analysis is a framework to analyze the level of competition within an industry and business strategy development (Porter's Five Forces, n.d).
Five Forces Analysis for France as below:
Before Iliad’s entrance into the market, the three main players, namely Orange, SFT and Bourges Telecom dominated the market. Hence, supplier power was high as there were not many suppliers available and customers were dependent on their product and services. They were able to set the prices as they please and customers have no choice but to go along with it. …show more content…
While the three companies were able to have control of the market, but due to their high prices, threat of new entrants, especially those that can offer much cheaper alternatives will be high. In 2002, negotiations between the French Government and France Telecom fell through that allowed Iliad to take advantage of the situation and offered fast DSL and broadband pipes to cover different services (Iliad: FreeMobile To Challenge The French Mobile Incumbents, 2012). Thanks to this, Free Mobile was able to pave a way to apply for the fourth mobile network license auctioned by the