[Type the document title] [Year]

Bargaining Power of Suppliers

Suppliers are POWERFUL if
There is a credible forward integration
threat by suppliers.
Suppliers are concentrated.
There is a significant cost to switch
suppliers.
The customers are powerful.

Suppliers are WEAK if

The product is standardized. There are
many competitive suppliers.
They are supplying commodity products.
There is a credible backward integration
threat by purchasers.
There are concentrated purchasers.
The customers are weak.

What does the bargaining power of suppliers in your industry look like?

In Pakistan Telecom industry now in current period, the bargaining power of suppliers is at the Low level
because of the nature of inputs for the business. furthermore, with the deregulated and welcoming situation to
telecom industry given by the Pakistan Government. Telecom industry has be converted into more aggressive
and excellence services driven. The cost of switching from one industry to another industry is low using
number Porting.

Bargaining Power of Customers/Buyers

Customers are POWERFUL if
Threat of backward integration is high
Customers have lots of competing brands to
choose from
Lots of Substitute products are available
Cost to switch suppliers is significantly low
Rival Products are relatively undifferentiated
Buyers are sensitive to price

Customers are WEAK if

Product is highly differentiated
Substitutes are unavailable
Switching costs are significant
Customer is unaware regarding the product
Buyers are not sensitive to price
There are concentrated purchasers.
The suppliers are strong.

1|P age

[Type the document title] [Year]

What does the bargaining power of customers your industry look like?
The bargaining power of customers in Pakistan Telecom sector is very high for the reason that switching cost
is low in the telecom industry of Pakistan. Telecom industries in Pakistan are attractive alternate available to
the buyer even in the shape of keeping the similar Mobile number but switching the service provider, It
creates very hard for the services provider to keep their clients. Brand dependability can only be produced
through greater selling campaigns and service.

Threat of Substitute Products/Services

Threat of substitutes will be LOW if
Threat of substitutes will be
HIGH if
There is strong brand loyalty.
There is little to no brand loyalty.
There are tight or strong customer relationships.
There are loose customer relationships.
Switching costs for customers are high.
Switching costs for customers are low.
The relative price compared to performance
The relative price compared to
of substitutes is high.
performance of substitutes is low.
What substitute products/ or services exist for your industry? What does the bargaining threat of
substitutes within your industry look like?
Even though the telecom industry users are more than 90 million but still the threat of alternating products is
high for the telecom industry in Pakistan. Buyer preference to alternate and price presentation buy and sell
are the most essential to judge in decisive the threat of alternate. Subscription of Mobile phones service are not
sufficient for a company to get finest profits but the actual challenge is that how many existing users/
customers are using/enjoying the mobile phone service frequently for incoming and outgoing calls. The
service quality is the main factor for a user/customer to be devoted with the contribution or else permanent
line and wireless fixed lines are the better alternate.

Threat of New Entrants

2|P age

[Type the document title] [Year]

Threat of new entrants is LOW
if
High Barriers to Entry
Large Initial Capital Requirements
Cost of Doing Business is High
There is patented or proprietary know-how.
There is difficulty in brand switching.
There are restricted distribution channels.
There is a high scale threshold.
Extensive Legal and Regulatory Frameworks exist

Threat of new entrants is

HIGH if
L o w B a r r i e r s t o E n t r y
Legal and Regulatory Frameworks are loose
Initial Capital requirements are small
There is common technology.
There is little brand loyalty
Customer Switching Costs are low
Distribution channels are easily
accessible.

What does the threat of new entrants with in your industry look like?

It is not easy to enter in this capital demanding sector of the Pakistan telecom industry. Threat of the new
entrants is low. on the other hand the development and potential of the telecom sector look very eye-catching.
it is hard to get threat for a new shareholder because the penetration in the market would be very complex.

Competitive Rivalry Within Industry

Competitive rivalry within an industry is LOW if Competitive rivalry within an industry is
HIGH if
There are few players in the industry.
There are many players of about the same
Players have different strategies.
size.
Differentiation between competitors and
Players have similar strategies.
their products are high.
There is not much differentiation
There is little to no price competition
between players and their products.
There are high market growth rates.
There
is much price competition
Barriers for exit are low.
Low market growth rates(growth of a
particular company is possible only at
the expense of a competitor).
Barriers for exit are high (e.g.
expensive and highly specialized
equipment).

3|P age

[Type the document title] [Year]

Comment on the Competitive Rivalry within your Industry using your previous responses above and
conditions outlined?
When the competition is ferocious, apparently the competitive rivalry will punch the highest level. The
very high level of competitive rivalry along with the major shareholder of the telecom sector is clearly visible.
Just look at the commercial/advertising campaigns of the rivals and you can see how strong the rivalry is. It
looks like a fight for primacy going on between the rivals. All earnings of attracting new and possible
switching customers are being used by all the competitors to add as much market share as they be able to. Exit
barriers, growth of industry, differences of product, brand uniqueness and variety of rivals are the main
reasons of very high competitive rivalry in this case

4|P age