SAY "CHARGE IT" WITH YOUR CELL PHONE

CHAPTER 2

Question:

• Do you view this technology as a potential threat to traditional telephone companies? if so what counter strategies could traditional telephone companies adopt to prepare for this technology?

• using porter's five sources describe the barriers to entry for this new technology

• which of porter's three generic strategies is the new technology following?

• describe the value chain of the business of using cell phones as a payment method

• what types of regulatory issues might occur due to this of technology? 

 Answer:

• yes, i have view this technology as a potential threat to traditional telephone companies.therefore, the counter strategies could traditional telephone companies adopt to prepare for this technology by differentiation. differentiation is by create competitive advantage by distinguish their customers. also by create a unique features or benefits may justify price differences and stimulate demand. for example is by create a good design and mostly can attract consumer to by it. by create more beautiful application, screen and also a energetic sound.

• by using porter's five force the one of the barriers to entry is buyer power...today's buyers has many choices to choose the best supplier for their product. for example blackberry smartphone using an application of IOS and Samsung using application of android. therefore the existence of the competitors cause barriers to them to improve and produce the better quality product. that's why customers choose the best and more quality product

• next barriers is supplier power..supplier need to diversity their product to maintain and compete with other supplier. they want their customers be a loyal user with their product

• third the barrier in threat of substitute products and services happened when too many technology product exist at the market. they want to be the best because they do not want their customer find and select another product and completely change it. 

• lastly is threat of new entrance. barriers for new entrances is how they want to introduce and make their product well known among the consumer.

• lastly, rivalry among existence competitors. when there are many of competitors in market that want to compete in their technology and product, they do not realize that that they need to open their mind and create something new for consumer..