Strategies for Telecom Industry Growth

Business Foundation

Table of Content
Introduction…slide 3
Porter’s five forces…slide 5
Legal structure of the company…slide 8
Major issues that company faces…slide 9
Strategies…slide 10
Conclusion…slide 11
Reference…slide 12

Introduction
It is very prominent that the telecom sector is
becoming an important sector in today’s world
with massive development in terms of technology.
Various network provider organizations like EE
Communication which is a UK based mobile
network operator along with constant delivery of
mobile phones and other network services to
more than 30 million customers across the entire
Europe. It was established in the year 2010 as a
50:50 ratio joint venture between a Dutch
organization namely Deutsche telecom and France
Telecom which is presently known as Orange S.A

Cont…
Today, EE Communication is known as the largest
mobile network operator in UK. Right from the
introduction of 4G, EE Communication has established
over two thousand square miles of network covering
about 70% of the population by the end of the year
2015. With the idea of expanding the business, the
organization has started providing services which
includes mobile payments, broadband facility, etc. EE
Communication has also expanded in retail which
includes the store sell of both the products and services
along with accessories. It has also formed a joint
venture with the Hutchison 3G, UK. EE Communication
is also engaged with the sponsoring of British Academy
of Film and Television Arts awards.

Porter’s five forces
In order to expand the business, it is important to understand the competition
among the rivals existing within the telecom market
 Intensity of Existing Rivalry-
Competition is very intense among the top organizations existing in the
market but it is significant to note that there is not much difference in respect
to the manufactured products and services. A proper analysis of the telecom
market existing in the European circle indicates that the telecom market
consists of a strong competitive advantage. Although EE Communication enjoys
a better market share with respect to the other big rival organizations such as
O2, Vodafone but performs poorly when customer satisfaction is concerned.
Bargaining power of suppliers-
The barging power of the suppliers is relatively moderate although EE
Communication relies upon its suppliers to supply the necessary equipments for
the advancement of the devices as well as the network. Even though it is visible
that EE Communication enjoys the pole position in the 4G market but it is not at
all an easy task to maintain the high quality technology hence, building a good
relationship between the supplier and the customer is compulsory.

Cont…
Threat of New Entity-
The telecom industry is already being well established in the European
circle and as EE Communication is one of the big names in the telecom
industry so the threat of the new entrant is relatively quite low because
the investment done at the initial stage is quite huge and there are
several barriers such as patents which has been already used by the other
big names as it becomes difficult for the new competitors.
Bargaining power of buyers-
The bargaining power of buyers is comparatively quite high as the power
of the customers are increasing day by day and due to the increasing
number of choices available in the telecom sector has relatively affected
the value of the product. When the demand is high, it affects the economy
as buyers can delay in buying the latest models until the cost is reduced
in respect to the circumstances Customers have the right to switch into
other operator at any time as this result the market to be more
intensified. It also leads to a negative approach among the network
operators.

Cont…
Threat of Substitute products or services-
The presence of available substitutes has a
great threat for the survival of the
organizations as it results in bringing down
of price of several products and services.
The threat of substitutes is moderate. Major
threats in the form of substitutes have
gradually led in losing the services such as
message and voice to the internet
telephony service has forced the network
operators to reduce the prices. But has also
provided an advantage that is
interoperability.

Legal structure of the company
Being a joint venture organisation, EE
Communication has also introduced a new
form of structure for the organization. It is
explained in the form of six lines of
business. Out of which two will serve the
customers, next two will serve the public
sector as well as the business.

Major issues that company faces
The network operator definitely
tries to establish a good
network across the entire
region but due to huge number
of subscribers, it is unable to
establish connection with the
landlines.

Strategies
To resolve such issues, EE
Communication must implement
various types of strategies like
introduction of new services that
provide better facility for the
customers and also try to maintain
the brand name of the
organization.

Conclusion
From the research, it is understood that
telecom industry being one of the strongest
contributor in the entire economy of the
country. Thus, the organizations associated
with the telecom industry needs to attain
customer satisfaction through its effort of
cultivating more strategies in order to
delete the issues that is proving to be a
threat for the organization. The Porter’s five
forces has also made it clear about the
entire scenario of the telecom market
existing within the European circle.

Reference
Ross, J.W., Weill, P. and Robertson, D.,
2016. Enterprise architecture as strategy:
Creating a foundation for business execution.
Harvard Business Press.
Amor, D., 2015. The e-business (r) evolution:
living and working in an interconnected
world (p. 27). Upper Saddle River, NJ: Prentice
Hall PTR.
Galaskiewicz, J., 2016. Social organization of an
urban grants economy: A study of business
philanthropy and nonprofits organizations.
Elsevier.