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Cellular Industry Analysis

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Cellular Industry Analysis
CELLULAR INDUSTRY ANALYSIS
PORTER MODEL

Wireless Cellular Service Industry-Porters Model

PORTERS MODEL:

Industry Competitors * Number of competitors * Industry Growth * Asset Intensity * Product Differentiation * Exit Barriers
Buyers
* Buyer Concentration * Number of suppliers * Switching Costs * Substitute Products * Threat of backward integration
Suppliers
* Supplier concentration * Number of buyers * Switching costs * Substitute raw materials * Threat of forward integration

Substitutes * Functional Similarity * Price performance trend * Product Identity
Potential Markets * Economies of Scale * Absolute cost advantage * Brand Identity * Switching Costs * Government policy

Introduction:
The Indian telecommunications industry is the world's fastest growing telecommunications industry, with 688.38 Million telephone (landlines and mobile) subscribers and 652.42 Million mobile phone connections as of July 2010. It is also the second largest telecommunication network in the world in terms of number of wireless connections after China. The Indian Mobile subscriber base has increased in size by a factor of more than one-hundred since 2001 when the number of subscribers in the country was approximately 5 million to 652.42 Million in July 2010. As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013. Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2010.

PORTER’S MODEL OF INDUSTRY STRUCTURE ANALYSIS:
Conceptual framework for industry analysis has been provided by Porter. He developed a five factor model for industry analysis, the model identifies five key structural features that determine the strength of the competitive forces within

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