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Wireless Communication

Autor:   •  March 4, 2012  •  Essay  •  303 Words (2 Pages)  •  1,063 Views

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The situation in the environment in the wireless communications strategic group is very competitive. There are several large carriers with a large quantity of market share, reluctant to give up any of it. A firm must have an immense amount of capital and infrastructure to be able to have a wireless network. There are high fixed costs, high strategic stakes, and high exit barriers. Barriers to entry of wireless communications strategic groups are very high partially due to government regulations that are hard to conform with, and a new entrant would have to have significant resources to even enter the market. As the wireless communications industry evolves, we are getting a better idea of the opportunities being created by the accelerating swing to ultra-high speed broadband, wireless multimedia, and anytime-anywhere applications and services. Another way of evolving is by offering family plans with technology that allows parents to monitor their child’s minutes, usage, location, etc. Major competitors are the obvious other wireless providers, i.e.… cell phone providers, cable companies, and VoIP phone service. A future threat to success is new substitutes to cell phones such as satellite phones, email, internet chat, and the new VoIP (voice-over-internet-protocol). Other threats include relationships with suppliers and desirable target market as customers. Finally, the threat of new entrants pose increased threats. They unlock the potential for firms to lose market share to the new firm, and have the potential to drive the prices of products and services down. Losing market share decreases overall profits, while price wars squeeze profit margins and force firms to further cut costs. To achieve a competitive advantage in the future, providers of wireless communication should offer new services and products at competitive prices and be aware of the tastes and preferences of consumers as well as the products offered by their competitors.

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