CHAPTER TWO CASE:SAY "CHARGE IT" WITH YOUR CELL PHONE

QUESTION

1.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?

 Yes,I agree this technology is potential threat to traditional companies.Therefore the traditional companies should use a focused strategy  on customer to target to a niche market.The strategies can be taken to do a better promotion such as television,internet and radio.This media is very effective and very attractive because nowadays almost everyone afford to have it.Beside that the company of traditional telephone shall upgrade the product by adding a sophisticated gadget for easy for customers to get information and facilitates communication.Other than that the traditional telephone companies must competitive with a good information,design with a wonderful the telephone with the current environment and make sure the telephone is suitable to all generation.

2.Using Porter`s Five Forces describe the barriers to entry for this new technology?

 
    The barriers to entry for this new technology is buyer power.In general,when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monopsony - a market in which there are many suppliers and one buyer.So in this condition the buyer sets the price.The buyer more likely to cheaper prices and sophisticated products.To reduce buyer power and create competitive advantage,the companies must make it more attractive to buy from the company not from the competitors.For example used loyalty programs such as jusco card,tesco card and being a members to get the discount.Therefore the company will be more difficult to produce quality products to compete with other competitors.Lastly as a customer should choose a best and quality product.
                        

3.Which of Porter’s three generic strategies is this new technology following?

  Focused strategy which  target a niche market.Targeting the growing market of cell phone users and purchasing products and services from the cell phone

4.Describe the value chain of using cell phones as a payment method?

 The value chain  of the business of using cell phones as a payment method for increase the infrastructure of phone companies and improve technology development.Then,the payment method can receive/store information from the consumers purchases and send that to the phone company. Lastly more people will engage in this type of payment method of the business.

  5.What types of regulatory issues might occur due to this type of technology?

 The other  people will be hesitate with fill the personal information out there not knowing what kind of security protection the company has. The people who not responsible will find a way to hack into cell phones.