Due on Final Class MeetingSubmit one Hard Copy to Instructor and a copy for each person via Turnitin...

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Due on Final Class MeetingSubmit one Hard Copy to Instructor and a copy for each person via Turnitin   	Purpose  The purpose of this research paper is to describe an industry that you are interested in. Preferably an industry is one that you have already identified in MG 615 (managing the global economy) and it caters for the local and foreign markets. Your analysis will incorporate variables of the industry as described by Porter Five Forces Frame in chapter 1:   	Entry Conditions 	Power of Buyers 	Power of Suppliers 	Substitute/Complements 	Rivalry  However, inthis course, the five forces are re-framed (re-organized
	
Document Preview: MG 640 Industry Analysis PaperDue on Final Class MeetingSubmit one Hard Copy to Instructor and a copy for each person via TurnitinPurposeThe purpose of this research paper is to describe an industry that you are interested in. Preferably an industry is one that you have already identified in MG 615 (managing the global economy) and it caters for the local and foreign markets. Your analysis will incorporate variables of the industry as described by Porter Five Forces Frame in chapter 1:Entry ConditionsPower of BuyersPower of SuppliersSubstitute/ComplementsRivalryHowever, in this course, the five forces are re-framed (re-organized) along three classifications of the industry (see chapter 7) as follows:Structure (entry conditions, including buyers and sellers)Conduct (how the power of the industry is affected its ability to set price above cost)Performance (profit in the long run)There is a causal relationship connecting Structure to conduct, and then to the performance of the industry. Here, we need to show how one of the performance variables (dependent variable) is influenced by conduct and structure variables. Explain how each independent variable affects the dependent variable in your selected industry. Also, include a section about the performance of the industry in terms of foreign trade (next export). Approach to your paperYour write-up is based on chapter 7 in your text book. Format  of the Term Paper6-8 pages minimum, double-spacedFull APA styleCover pageTable of ContentsBody of the paper (with appropriate citations)References page with at least three academic referencesTurnitin threshold of no more than 30%Outline of Industry Analysis PaperCover PageTable of ContentsIntroductionHistory or background to the industryPurposeData sources (primary/secondary)NAICS codesPlan of the paper in terms of the issues to be discussed in the remaining paperBody of the paperPerformance (Dependable Variable)Structure, and Conduct...

Robert · Accepted Answer

Running head: TELECOMMUNICATION INDUSTRY ANALYSIS
Title: Telecommunication Industry Analysis  
Name: 
University: 
Course title: 
Date:
TELECOMMUNICATION INDUSTRY ANALYSIS   2 
 
Table of Content
Descriptions Page No. 
Introduction 3 
Porter’s Five Force  4 
A. Threat of New Entrants  4 
B. Threat of Substitutes  4 
C.  Competition among Firms 5 
D.  Buyer Power 5 
E. Supplier Power  6 
Market Structure 6 
Market Share  7 
A. Concentration ratio   7 
B. HHI Index  8 
Conduct 9 
Performance  9 
Conclusion  11 
References 12
TELECOMMUNICATION INDUSTRY ANALYSIS   3 

Introduction
Telecommunication industry has shown a phenomenal growth across the world during the last 
few years. The world is virtually ruled by the massive sales in smartphones produced by Apple, 
Samsung and other major companies connecting billions of people around the world. 
Smartphones are connecting the people not only in voice communications but to streaming 
videos and wireless internet at their fingers tips. In order to control the huge smartphone traffic 
and their network, the telecommunication industry has grown at an accelerating pace.  Needless 
to mention, U.S holds the crown of the boom in telecommunication industry. According to 2017 
Forbes Global 2000 list of world’s telecommunication companies, AT&T and Verizon holds the 
highest rank. China mobile and Japan’s Nippon Telegraph & Telecom are found to rank among 
world’s top 4 telecommunication industry. Total annual revenue in top 25 telecommunication 
industries hailing from 17 countries has reached to 1.2 trillion in 2016 with a profit of $88 
billion. The combined market cap is calculated as 1.6 billion.   
In this paper we will analyze the top 3 telecommunication industry: At&T , Verizon and T-
Mobile.  The recent study has put an attempt to analyze the industry by using the dependent 
variables as discussed by Porters Five Forces model. The paper further examines how the 
explanatory variables (like structure and conduct) influence the dependent variables like the 
performance of the industry. (Gara, 2017)
TELECOMMUNICATION INDUSTRY ANALYSIS   4 
 
Porters Five Forces 
Michael E. Porter provides a framework that models an industry as being influenced by five 
market forces, popularly termed as Porter’s Five Forces. Let us now analyze how Porters Five 
Force model affects the intensity of the competition, attractiveness and profitability of the 
telecommunication industry in US. 
Threat of New Entrants 
As telecom industry is characterized by oligopoly structure, the barriers to entry are substantially 
high. High barriers to entry would lead to reduce the threat of new entrants. Telecommunication 
industry is basically a capital intensive industry with a very high infrastructure cost. The cost of 
establishing a wireless company and building the network is abnormally high. As a cutting edge 
tech industry, the investment on research and development is also very high. Few entities can 
only afford such a high capital expenditure. Moreover, the wireless company has to undergo 
huge government regulations. This high cost of infrastructure and government regulation acts as 
a major barriers to entry in the industry. Thus it is unlikely that new entrants will come and clear 
the necessary hurdles and compete with Verizon or AT&T.  
Threat of Substitutes 
The rise of U.S carrier T- mobile and their disruptive offerings have become a huge threat to 
Verizon and AT&T.  According to Wells Fargo securities estimation, T mobile has added 
911,000 postpaid customers majority of which have switched over from Verizon and AT &T. 
The aggressive business strategy of T mobile has demonstrated that how the smaller companies 
even disrupt the market. AT&T and Verizon have dominated the carrier market for a substantial 
period of time – while T- mobile and Sprint were struggling to gain their subscribers. But since 
TELECOMMUNICATION INDUSTRY ANALYSIS   5 
 
2013, T- mobile changed their business strategy and changed the market dynamics. Sprint, 
another small firm also launched aggressive price promotion aiming to increase their market 
share. Industry analysts predict that T-mobile will continue to eat the customer base of Verizon 
and AT &T in 2017  and beyond. (BIIntellegence, 2017) 
Competition among Firms 
The competition among the firms in carrier market has intensified to a significant extent.

Due on Final Class Meeting Submit one Hard Copy to Instructor and a copy for each person via Turnitin Purpose The purpose of this research paper is to describe an industry that you are interested in....

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