Monday, May 20, 2019
Case Study of P1
1. 0 Introduction 1. 1 Company mount Packet One Networks (Malaysia) Sdn. Bhd. (P1) was launched on August 18, 2008 as a subsidiary of atomic number 19 Packet Bhd, which is a manoeuvering orbicular developer of Next Generation Mobile Broadband Networking Solutions. P1 is Malaysias starting line and leading WiMAX telecoms political party with the country widest WiMAX network and it re boons the first large-scale commercial deployment of Mobile WiMAX in S forbiddenheast Asia, as hygienic as the first large-scale deployment of an 802. 16e WiMAX network outside Korea. P1 was whizz of four companies awarded 2. GHz spectrum libertys by the Malaysian Government to deploy WiMax operate throughout Malaysia (www. p1. com. my, 2009). 1. 2 Companys vision P1 objective is to plough the trade leader in radio set wideband industry. To achieve that, P1 are now putting their campaign on broadening receiving set broadband plug intoivity across the region in follow to capture to a greater extent than merchandise. (www. p1. com. my, 2009). 1. 3 WiMAX WiMAX is an abbreviation of Worldwide Interoperability for Microwave Access. It is a standard-based technology enabling deli very(prenominal) of last cubic cen metertre piano tuner broadband access as an alternative to cable and DSL.WiMAX enables repayables of bandwidth amid two points or betwixt a point to multipoint to node. The physical exercise of WiMAX requires certain bandwidth of spectrum to be allocated to the value supplier, in accordance to the channeling externalise approve and published by Malaysian communication theory and Multimedia Commission(MCMC) (www. greenpacket. com, 2008). 2. 0 Michael Porter 5 Forces 2. 1 terror of pertly entry Telecom industry is one of the industries which oblige the biggest barrier to enter. Firstly, to enter this industry requires a ring of cash to cover high school ixed equipment and innovation cost (Gupta. A, 2008). Secondly, the ownership a telecom license ignore be one of the biggest barriers to entry, because government may refuse to give license to operator to pass their business (WiMAXian. com, 2009). Thirdly, advertisements to create awareness to existence are very costly it is very hard to assimilate public attention if there is no enough advertisement since there are so legion(predicate) a nonher(prenominal) a(prenominal) admiters in Malaysia. Moreover, skilled military man capitals are required to operate the business (Gupta. A, 2008).Lastly, high exit barriers panicky off investors in get into this business, concluding that the threat of new(a) entry is very small(a). 2. 2 war-ridden challenger As network plays a very important aim in humans daily life, closely of the people incur to in touch with cyberspace every day. So, to attract more subscribers, competitors arouse to lower down their footing and provide more benefits in order to survive since they have invest an enormous capital in this busi ness that with high exit barrier due to its delineate equipment. thither are more than 10 earnings service providers (ISP) in Malaysia.Normally, new carriers are use to reserve low price strategy to attract nodes, which lead to a price war (wwwen. zte. com. cn, 2010). alike(p)wise that, these ISP do their promotion and advertising frequently as everyone in major city give the gate assimilate it every day and everywhere. The fierceness of frequent advertisement had leaded to an advertising war between P1 and Streamyx in 2009 (Risen. J, 2009). Moreover, High customer churn rate shows that any unsatisfaction in term of travel rapidly, stableness and price leave cause customer to switch to other service provider (Gupta. A, 2008).It may conclude that the competitive rivalry in internet industry is highly intensive. 2. 3 Bargaining power of buyer With the increased choices of broadband service in Malaysia, the bargaining power of buyer is rising this leads into customers seekin g low prices yet have discontinue work. On the other hand, the switching cost from one to another Internet service provider is relatively low, customers can switch to other service provider easily, and this enhanced the bargaining power of buyer. 2. 4 Bargaining power of supplier P1 need to have sets of specialize ironware and software equipment to run their business.From hardware (Base station, CPE, Antenna, Cooling organization and etc) to software (Billing software, Network Monitoring, Test Software), there are enough number of suppliers mute bargaining power. As a conclusion for the bargaining power of supplier, it is average as P1 have many another(prenominal) other options (www. wimax-industry. com, 2009). 2. 5 Threat of electric switch High substitution threats from non-traditional telecom industries crossway and services, for example blood television verses Satellite television, Internet telephony verses traditional voice calls (Gupta.A, 2008). 3. 0 Segmentation Tar geting and Positioning 3. 1 Target Market P1s target markets are metropolitans who seek for convenience lifestyle. 3. 2 Positioning P1 had rateed WiMAX as a 4G technology that is superior to High Speed Packet Access (HSPA) and 3G technologies, which are the fastest, conveniences, stable radio broadband network in Malaysia. gum olibanum, P1 had done a Potong (Cut) Now campaign to advertize public to deliver themselves from hassles, frustration and any other unsatisfying broadband services. (www. p1. com. y, 2009) 4. 0 Marketing Mix 4. 1 increase The core product that P1 provided is internet tie-in service. There are two supporting products for people to connect to internet provided by P1 which are Wifi-enabled Desktop Modem and Portable Modem WIGGY it can be diversify into many plans. 4. 1. 1 Wifi-enabled Desktop Modem Wifi-enabled Desktop Modem allows several users to connect to internet at the same time by wireless local area network technology. There are 5 standard plans wh ich are categorized into two major plans Home and Office. (www. p1. com. my, 2010)For Home, it can be divided into 3 plans which are LITE, PLUS and PRO. The LITE plan community fixedness is 400kbps and employ brink are setting at 5GB. The Plus plan provided 1. 2 Mbps fellowship speed with 20GB work threshold. The PRO plan provided 2. 4 Mbps connection speed and usage threshold are setting at 40 GB. (www. p1. com. my, 2010) Whereas for Office, are divided into Standard and Premium. The Standard plan provided 1. 2Mbps Internet connection speed and enjoying numberless usage threshold. The Premium plan provide 2. Mbps internet connection speed and enjoying unlimited usage threshold by unlimited as nearly. (www. p1. com. my, 2010) 4. 1. 2 Portable Modem WIGGY Unlike Wifi-enabled Desktop Modem, there are scarce two major plans for Wiggy which is Wiggy 69 and WIGGY*. Wiggy 69 provide 800kps connection speed, allowing 5GB of usage threshold. Whereas for WIGGY*, provided speed up to 10mbps with usage threshold 10GB (www. p1. com. my, 2010). 4. 2 Price P1 had offered a stimulus package which is RM 49 per month to attract the new broadband users and scholarly persons.Another competitive package implys WIGGY with RM69 and RM149 per month. In the below, the table shows that the competitive prices between P1 and Streamyx. pic Table 1 P1 W1max pic Table 2 Streamyx Table 1 and table 2 shows the prices of P1 WiMAX and Streamyx according to the prices. From here, it shows that P1 keeping the price to be balance with others competitors, which Streamyx are provide Streamyx 2. 0Mbps package with price RM 188, and P1 are provide the plan PRO 2. 4Mbps with price RM 199. (www. p1. com. my, 2010 and www. Streamy. com, 2010).The prices of all plan set by P1 al intimately the same with others competitors because P1 believes in an honesty policy in which the subscriber knows upfront which speed and price is worth for them. Thereby, P1 not solo keeps the price balance never theless similarly increases market share and influences the local market. (www. p1. com. my, 2010) 4. 3 Place States and places had cover by P1 are Kuala Lumpur, Johor Bahru, Kuantan, Selangor, Perak, Pulau Pinang, and Perlis. P1 are planning to roll out its Wimax Services in the extract which still havent covered by P1 that include Kuala Terengganu, Melaka, Sabah and Sarawak. www. p1. com. my, 2010) P1 recruit resellers to provide registration service in divers(prenominal) submit and areas that including Perak Ipoh, Pulau Pinang Butterworth, Johor Batu Pahat, Kuala Lumpur Putra Jaya and many other places which covered by P1 WiMAX insurance coverage. (www. p1. com. my, 2010) On the other hand, P1 Green Packets headquarter located beside the national Highway in KL, it also houses their customer service center to provide reception service for customers keep abreast to registration with P1 Modem, require information, make requital, and others. (www. hot-screensaver. om) Lastly , internet also plays as an important part for P1 as play strategy, customers can make registration and bill payments are P1 official website. (www. p1. com. my, 2010) 4. 4 Promotion P1 has paid more attention to blemish image promotion, and there are variety of promotions provided by P1 to attract more customers that refer P1 likes to attend different kinds of indus effort exhibitions, seminars and summits, and make speeches to promote P1s fault (wwwen. zte. com. cn, 2010). Besides that, P1 had also promoted their services through advertisement.It features with three conventional forms of media which are television, newspaper, and radio. 4. 5 People Externally, P1 recruit resellers to promote and persuade customer to subscribe P1 Wimax internet connection services. Customer can find P1 WiMAX reseller easily as long as they are under P1 services coverage (www. p1. com. my, 2010). Internally, P1 hire formal receptionist to serve customers at their headquarter-PacketHub reception. Moreover, P1 also hires operators for customer care line to serve call in when customer encounter problems or need impart information.The operation hours of P1 Customer Care Line starting from 8a. m to 11p. m, it also available on public holidays. (www. p1. com. my, 2010) 4. 6 Process P1 payment can make by online bill payment, auto debit, cheque payment and phone-in payment. Online bill payment allows customers to pay online by using Visa/MasterCard, Banks Savings and Current Account. Customer also can use Auto Debit/Auto pay system to do payment, it is an automatically system that give deduct customer bank savings or new account on a fixed schedule.It is for sure that customers can use cheque payment method to pay for their bill this is the very common way to make payment. Moreover, there is an option for customer to pay by phone-in payment, but exactly for MBF credit card holder and Visa/Master card holder (www. p1. com. my, 2010). 4. 7 Physical picture 4. 7. 1 Official Webs ite P1s official website is well design it is eye catching, multi gamblingctional and easy to use. It contains of information, announcement, online speed step check, online payment, coverage check, online feedback and so on (www. p1. com. my, 2010). 4. 7. 2 PackagingPackaging boxes of P1 W1WAX are made by high quality carton this is to ensure that it can physically protect the product inside, preventing any damages from unthought event. Moreover, the packaging itself are well design and nicely labeled, this is to attract and to relay information to customers. A well made design of packaging can be a tool to influence customers perception in term of quality of the product, indirectly persuade customer to choose P1 WiMAX internet connection service from other competitors. pic Picture 1 Packaging of P1 WiMAX Modem 5. 0 S. W. O. T of P1 wimax Strengths helplessness First actor and market leader Low Coverage Strong brand image Erratic connection, weak connection signal Ease of us e, low-cost 4G technology Partnering with government Support from parent company Opportunity Threats Consumer preferences for internet access service Threaten from Redtone Technological advancement Preference for wired broadband and free wireless services States going wireless Intense competition 1. Strengths 5. 1. First mover and Market leader P1 is Malaysias first and leading Wimax telecoms company with the countrys widest Wimax network. The company gains the first mover advantages. It obtains control of resources that chase may not be able to match. P1 also formed a partnership with Sunway Group and end deployment of the first phase of the emailprotected project, providing wireless broadband Internet access to more than 80 percent of alkali and business users and over 2 million visitors to the groups flagship township, making Bandar Sunway the first integrated Wi-Fi/WiMAX wireless township in Malaysia. (www. p1. com. my, 2009) 2. Partnering with GovernmentMoreover , P1 was chosen by the local government, the Kuala Lumpur City Hall (DBKL), and regulator, the Malaysian Communications and Multimedia Commission (MCMC), to set up the Wi-Fi/WiMAX (Wi-Fi mesh) Kuala Lumpur Wireless Metropolitan Project (emailprotected), deploying over 1,500 hotspots and currently component part more than 130,000 users with free wireless broadband Internet access in Kuala Lumpur. (www. p1. com. my, 2009) It helps to create a real brand image to P1 Wimax. P1 has established relationships with various local governments and communities to attract more new customers. 3. Ease of use, affordable 4G Technology Besides that, the ease-of-use offered by current modems, with true plug-and-play compatibility for typical users and greater flexibility for more ripe(p) users ( much(prenominal) as online gamers and heavy downloaders) to get the connection configuration freedom that they need truly satisfy the customer.P1 Wimax requires no configuration, no software installation ( for desktop modems), no additional linesjust plug-and-play operation (www. p1. com. my, 2010). The price of the plan and packages for customer are also affordable. 4. Support from parent company P1 is a subsidiary company of Green Packet, a technology company from Silicon Valley, and gets its technology and designs from Green Packet. With the help of Green Packet, it brings the future to present by offering one? stop cost effective data, voice, video and other cling to added services for all communication needs. The technology can transfer or sharing between each other. 1. Weakness 5. 2. 1 Low CoverageP1 W1MAX Wiggy signal coverage still not wide enough, there is only 35% population coverage by the end of 2009. 9As P1 Wimax service is still relatively new and in the process of being fully implemented, coverage is still not optimal especially in vitamin E Malaysia. However, P1 has a new marketing strategy out. Instead of planning where to P1 W1MAX enable, they are asking their use rs to vote for the succeeding(prenominal) P1 W1MAX coverage areas. P1 hoping to founder 45% population coverage by the end of 2010, and 65% population coverage by the end of 2012 in Malaysia. (www. p1. com. my) 5. 2. 2 Erratic connection, weak connection signal The signal of the connection show a niggling erratic when the user wasnt exactly in the coverage area.Beside that, depending on the location of the P1 tower, the connection also varied from various parts of the house and performed take up when the modem was placed destruction to the windows. On the other hand, the P1 modem may not work if you are using a work laptop computer where you do not have permission to install applications. This is because the P1 modem get out actually install a little application in your laptop or computer to enable it to connect so you will have to ensure that your computer allows installation of applications. Based on these weaknesses, the P1 Company has created an opportunity to their compe tition to move in they still need to do a lot of improvement to increase its motion and quality. 2. Opportunity 5. 3. Consumer preferences for internet access service study technology (IT) and advanced communications are playing an increasing role in national productivity growth, the creation of new network-based activities, and improving education and living standards. Frequency of Internet activity many multiplication a week Activity All Dial-up High-speed Email & clamorous messaging 71. 4 68. 5 79. 7 Search engines & purchase products 37. 8 29. 5 60. 8 repair games & gamble 21. 0 17. 7 30. 8 Share music file or photos 10. 1 6. 19. 5 Banking, trading stocks, or bill payment 9. 8 7. 4 16. 5 Download movies to view on PC 1. 0 0. 9 1. 3 Note. Cells are percent of respondents using the activity many times a week. (Table taken from Telecommunications Research Group, University of Colorado) The table supra shows Internet activity for the most extremes responses. The boom of e-busi ness and m-commerce, doing things such as paying bills online and being on the go creates an opportunity for P1 as the trend is to utilize and makes the best of all the time you have.This is due to the increasing preference for full mobility, doing things on the go and online connectivity. pic The table above shows that the internet users and broadband internet users had been increase. By the end of June 2008, there were 1. 718mn broadband subscribers in the market, and our estimate of seeing just over 2mn by the end of the year is expected to be achieved, led by shoot for wireless broadband. (Malaysia Telecommunications Report, 2009) This trend is expected to continue, particularly given that the country reported the deployment of its first WiMAX services in the third quarter of this year. We are forecasting around 7mn broadband subscribers by 2013, representative of a penetration rate of 24%.The increase of broadband users is also a sign that the market would be doctor for P1 Wimax if the service and promotion are implemented successfully. 2. States going wireless emailprotected, is a state government opening move engaging the WiMAX-based P1 wireless Internet service. P1s part of the project is actually named emailprotected, a subset of the larger initiative, to deliver broadband Internet connectivity to areas with high numbers of tourists, as well as densely-populated locations, making Penang one of the first cities in the humanness offering full WiMAX connectivity. (www. p1. com. my, 2009) This provides an opportunities as P1 may take advantages of this need and be the most widely used, known or eve sole provider in the state.This will put them leading of their competition as well as help to establish credibility and reputation. 3. Technological advancement MIMOS, the prime(a) applied research centre in frontier technologies, today announced that its WiWi Technology Platform the worlds first hybrid WiFi and WiMAX solution which operates on 2. 3 GHz frequency knowing as an alternative for last mile broadband connectivity to accelerate Malaysias broadband ecosystem is ready for countrywide commercialisation. (www. mimos. my, 2009) The new MIMOS WiWi allows for get around penetration into the broadband market such as being able to reach rural areas where pulling cables are more costly, time consuming and inefficient option.If P1 is able to build a strong brand image, excellent reputation and services, it will be able to capture the lions share of the market. 3. Threats 5. 4. 1 Threaten from Redtone Redtone, using base stations and CPE equipment from Motorola, has launched the first commercial WiMAX service in eastern hemisphere Malaysia. (www. telecoms. com, 2010)The first phase of the WiMAX network covers the Kota Kinabalu business district. With Redtone heavily investing and focusing in East Malaysia, Redtone has managed to establish themselves and build credibility there. This creates an obstacle for P1 whose objectives i s to be the leader in the wireless broadband industry.P1 will find it much harder to penetrate that market without heavy investment in promotions and improving their services or Redtones service deteriorates. 2. Preference for wired broadband and free wireless services As wireless broadband is still not very advanced, it tends to be either more unstable or does not have extensive coverage. As such, people may not want to pay for wireless broadband when options such as wired internet in the office or home are available. set-apart Wi-Fi services are also available to cater for the increasing preference for full mobility in many places such as F&B outlets such as Starbucks, McDonalds, Secret Recipe, Old Town cafes, soda pop Rich and so on. 3.Intense competition P1 Wimax operates in the highly competitive and rapidly evolving technology industry. fast changes in the technology have resulted in the frequent introduction of new products with competitive prices, features, and performanc e characteristics. roughly of the competitors of the company include fixed line (TMNet Streamyx), and cellular providers through their HSDPA/HSUPA (Celcom, Digi, Maxis). With telecoms lying new technologies from time to time (towards LTE) and TMNet starting High-speed (using fiber) broadband next year in metro areas of Klang Valley. Moreover, P1 only offers 2 portable Wimax packages, the Wiggy and the Wiggy 69.Each package is placed on two extreme ends, one with a very low speed and the other with a significantly higher but also higher price tag. (www. p1. com. my, 2009) There is currently no package catering to the in between marketthose who do not school principal paying a bit more and getting a slightly higher speed than that offered by Wiggy69. Aside from that, the competitor offers a much wider range of packages and some even cater to the in between market. This creates a threat to the P1 also. 6. Marketing Objectives and Strategies 6. 1 Marketing Objectives a) To increase to 20% P1 WiMAX subscriber in one year. b) To increase 30% of P1 WiMAX awareness among the targeted audience in one year. 7. Marketing Strategies Ansoft Matrix Market discernment price, promotion Product information product - special price packages -R&D in service stability - inducing trial use -packaging of the product Market phylogeny-promotion, place Diversification-distribution product - Increase service accessibility in F&B outlet -come out with nomadic telecommunication service. - Increase coverage - card campaign 7. 1 Market Penetration Price Special price packages-student packages Communicating the benefits to the end-consumer of a product often needs a sweetener to entice the consumer to change their provider or sign up for the first time with a new provider. Adding value and an incentive to purchase to the end-consumer is the main point. The student market for broadband is significant and forms the key demographic of the target market. According to the resear ch that done by P1, the customer Top Five Wish List are 1. Coverage 2. Embedded devices with attractive bundling and appurtenance options 3.Higher data cap 4. More affordable portable offerings 5. Direct subscription sign-up online (already addressed by P1 Direct) With student sometimes paying up RM 26. 000 per year on higher tertiary education fees, a active internet service that is fast, reliable, portable and most of all, affordable is most attractive. As an incentive for students to sign up to P1 Wimax, an exclusive package deal for student only would include 12-month short-term contract, an improved download speed of up to 10mps, the last month of the 12 month contract would be free-of-charge, premium on offers which include pendrives, mouse pad all bearing the P1 Wimax logo and so on.The design of shorter term contract would be more appealing to students as many students live in a dynamic environment and value their freedom of choice. By making the 12-month contract more att ractive the students interest will be garnered. Besides that, P1 also can conduct an on campus advertising. On campus advertising is a marketing and media services company specializing in targeting college students on campuses. The concept of advertise in campus is less expensive and can attract more student in the package which are only deal with student. Additionally, the campus media such like campus radio station and website can get the ads get played in order to increase its brand awareness. Inducing trial use The consumers could be influential in inducing trial use of a new product or service.Companies now allow clients and unbendableial customers to try products and services on a trial basis before purchasing or signing up. By offering a trial offers, it acts as an incentive for prospective consumers, potentially influencing their decision to sign a contract with the company and encourage users of another brand to switch. This method is used in order to demonstrate and prom ote the stability and speed of P1Wimax. Once the users get a feel of the Wimax technology P1 provides, they will be more easily convinced(p) to make a purchase if they are able to experience a product or service first hand as they will make the judgement on their own. 7. 2 Market Development promotion, place Increase Services availability in F&B outletsF&B outlets such as Starbucks and Old Town are selected as it is not only a hang out place but a place where those who wish to surf the net can do so in comfort as food and beverages are served there. It is more convenient than using the cyber cafe and it is also provides a change of atmosphere from surfing the net at home the office or in an educational institution. The F&B franchises are chosen as many people patronize the outlets not only for the food and drinks served but also for the ambience, WiFi services and price. Furthermore, the distribution of these outlets is wide and easily to find. Thus the name and device will always be easily seen, building awareness, reminding the public and creating interest in the Wiggy portable USB modem service. Increase CoverageIn order to increase distribution and availability, P1 could establish relationships with various state governments and communities. Because of the successful partnering with Penang government, the company now can engage the WIMAX-based P1 wireless internet service with other state government. This partnership project not only can increase the brand awareness, but also go on economic capabilities and social education opportunities so that the state can leapfrog the development and growth of Information and Communication Technology (ICT) as a whole. Mailing Campaign Its important to promote the brand awareness and reputation. This is especially true when economic times are challenging, youve got news to announce, or youre precisely hungry for growth.Many forms of promotion are available to the modern designer with banner ads and Google AdWords among the most popular. In this digital age, its easy for web and graphic designers to overlook one of the most effective and fun forms of promotion the mail campaign. Direct marketing provides with a way to conduct a test of this market relatively quickly, at a reasonable cost, and with convincing certitude. Direct mail can happen fast. With a modest campaign to a known target audience, P1 can acquire a mailing refer develop mailing materials (including direct-mail letter, flier, reply card and so on), launch a mailing and start to run across results in just a few months.This is faster than the typical advertising campaignand a lot faster than waiting for the phone to ring. Additionally, P1 can test different appeals, called offers in the trade, to reveal the most potent message through direct mail. By making a different offer to randomly different portions of mailing list, P1 can see which offer pulls best. Go with the best puller until find a better draw. As P1 try different offers and different letters, they will find one does better than another. Use the better one, and then try to beat that in the next mailing. Eventually, P1 could get better and better response rates. The mailing campaigns are potent to generate immediate response for advertisers and are also easy to track performance of campaigns.Moreover, P1 can take entrepreneurial achievements far beyond their competitors if they use this campaign correctly. 7. 3 Product Development product R&D in service stability Stability is one of the stimuli that create customer retention in telecommunication industry, and it can be one of the most attractive unique selling point attracts more potential customer to subscribe P1 WiMAX internet services. So, R&D on current P1 WiMAX and come out with a more stable service rather than just emphasizing on speed improvement can draw numerous of potential customer from other competitors. More stability, in customers mind, means more reliability. Packaging of th e productThe modem of P1 is a little big equality to other competitors, it maybe not convenience for whom which are bring along and travel around. In order to attract more customers, the design and the package of the modem should be more stylish and portable. For example, with the environment now provide with modern, a broadband also can be designed as a necklace which is easy to take and keep. Moreover, it also can be a decoration for girls. 7. 4 Diversification-distribution product Come out with alert telecommunication service P1 can diversify their service into mobile telecommunication service. This is a new, challenging and positivity market for P1 to diversify into it.Although P1 have to bear a high risk for press ahead towards mobile telecommunication service industry since there are already three major players which is Celcom, Maxis and Digi had dominated most of the market shares. However, as every person has to had one mobile phone in this 21th century, mobile telecommu nication service is an enormous, long lasting and highly profitability industry to target. In order to penetrate this new market segment, P1 could establish a partnership with Sony Ericsson. Sony Ericsson Mobile Communications is chosen because its a global provider of mobile multimedia devices. It is famous and well known. A good relationship with right company can become an essential pull factor for P1 development. 8. 0 Target market and Positioning 8. 1 Target marketThese new implementation plans targets people who live in urban areas. Whereas Mobile telecommunication service are targeting students who are currently using P1 services 8. 2 Positioning As to mastermind with the new implementation plans P1 should position themselves as an affordable, reliable, and fastest wireless broadband network. For mobile telecommunication service, P1 should position themselves as affordable, reliable and emphasis on joyfulness to communicate with friends and families. Threat of New Entry 1. implore enormous capital to enter 2. Telecom License 3. High advertising cost 4. (emailprotected A ? L M T V W l 2K L cIY? YSuSnenV hCk9hohCk9how5? hCk9hyA0J hCk9hyAhCk9hyWe0Jh? sjh? sUpic hCk9hyWe hCk9huo% hCk9h? a hCk9h? hCk9hshCk9hyA5? 0hCk9hOyk5? B*picCJOJQJaJmHphsH0Skill human resources capital 5. High exit barrier Competitive rivalry 1. More than 10 ISP 2. New carriers lead to price war 3. Advertising war 4. High customer churn rate Supplier berth 1. Moderate number of suppliers 2. Able to change Buyer Power 1. Many Suppliers 2. Seeking for lowest prices but have better services 3. Low switching cost Threat of substitution 1. High substitution threats from non-traditional telecom industries product and services.
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