“Charge It” with your cell phone

Chapter 2: Identifying Competitive Advantage

 

 

Questions :

1. Do you view this technology as a potential threat to traditional telephone companies? If so, what counterstrategies could traditional telephone companies adopt to prepare for this technology ?

2. Using Porter's Five Forces describe the barriers to entry for this new technology ?

3. Which of Porter's three generic strategic is the technology following ?

4. Describe the value chain of the business of using cell phones as a payment method.

5. What types of regulatory issues might occur due to this type of technology ?

Answers :

1. Yes,this new technology will harm traditional telephone companies. This new technology can   attracts even more customers to the cell phone market, the traditional telephone companies stand to lose additional market share and revenues. For this reason, this type of technology is a definite threat to the traditional telephone companies. The traditional telephone companies will have to find new ways to entice customers. The strategies to adopt this new technology are to implement the ability for the home phone owner, who is also an ISP customer, to purchase on-line retail goods and have the charge applied to their home telephone bills. Traditional telephone companies must competitive with a good information,design with attractive the telephone with the current surrounding and make sure the telephone is suitable for the all generation that used. Next, make traditional telephone more appealing to people and possibly cheaper packages then what they already have.

2. The entry barrier, because the product or service feature that customers have come to expect from organisation's in a particular industry and must be offered by an entering organisation to compete and survive.Cell phone company must offer customer an array of services that this new technology will provide. Next is a Switching Costs, are costs that can make customers reluctant to switch to another product or service. For example, firstly, Cell phone companies can monitor what customers buy, secondly, after many times of visiting sites they can tailor  products to what the customer likes, thirdly, if they shop else where, there will be a switching cost since the new shopping site  does not have a profile of the past’s purchases the customers made.  

3. Focused strategy, because can target a niche market. The companies must targeting the growing market of cell phone users and purchasing products and services from the cell phone

4. The value chain increase the infrastructure of phone companies and improve technology development. Next, the payment method can receive or store information from the consumers purchases and send that to the phone company. Lastly,more people will engage in this type of payment method.  

5. The people will be sceptical with putting personal information out there not knowing what kind of security protection the company has and people will find a way to hack into cell phones.