Force 1 : Rivalry Among Competing Firms As the European telecommunications market is highly saturated and regulated because the competition in Europe is high and this is more favorable for Vodafone. There are many competitors of Vodafone in the telecommunication market such as O 2, T-Mobile, and 3. O2 is a Spanish telecommunications company and it has more than 140 million customers in total. TMobile has strongly increased its presence within the European area. It has 12 direct and indirect shareholdings in mobile communications companies worldwide and has around 120 million customers at the end of 2007 and T-mobile is growing rapidly. 3 is a new competitor in Europe. The strategy of this company to enter the market is one of low price and it is expected to remain unchanged for the next couple of years Force 2 : Potential Entry of New Competitors New initiatives from outsides are not likely in an industry that is highly regulated and protected by significant barriers to entry. The increasing between mobile network operators and online entertainment providers leads to a redefinition of the industry boundaries. It makes communications usage and purchases will also increasingly intertwine with those of other digital goods. This is already happening now with VoIP (Voice over Internet Protocol), cablecos, and Internet access providers. Simultaneously, retailer will entering the business market in the form of the virtual operator network concept and competing on commodity services. Force 3 : Potential Development of Substitute Products The increasingly vague scope of the market boundaries has drawn considerable interest within the industry. Fixed-mobile line conversion is a real future prospect for network operators. At the same time though, Internet calling services through VoIP such as Skype are experiencing enormous growth. Skype essentially offers international calling at the price national calls. Force 4 : Bargaining Power of Suppliers The concept suppliers of the mobile network operators market should be redefined indicating the providers of mobile devices. It is very important for mobile network operator and device providers, so Vodafones global have an exclusive deal with phone manufactures. Yet, Vodafone develop its own from mobile network operator and device. In phone market, it will reducing the firms dependence and making its offering more complete.
DHIKA MAHAPUTRA
STRATEGIC MANAGEMENT
INDUSTRIAL ENGINEERING - 5
Force 5 : Bargaining Power of Consumers
The main factor that have marked recent developments in the mobile services market is the enlargement of subscriber bases in the developing economies, particularly in the major emerging markets but also in the industrialized countries, despite already high penetration rates. In the mature operators market face competition and consumer demand for more features, minutes and texts, for less money. So, the companies trying to cut costs and these benefits in the form of price cuts to consumers to make consumers are becoming increasingly sophisticated and make use of the wider range if services that mobile operators have to offer.