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Report
SUPPLIERS
 LOW Power Threat
 Suppliers are not capable of Forward Integration (No service
capability)
 There are numerous suppliers in this industry such as LG,
Samsung, Motorola, Apple, etc.
BUYERS
 LOW Power Threat
 Consumers always want the newest product available to
them so purchases are made very frequently.
 Customer loyalty is high in this industry.
 Wireless providers make switching providers very difficult
with 2-year contracts containing high termination fees.
SUBSTITUTES
 LOW Power Threat
 Products from other industries do not offer superior
value propositions to satisfy buyer’s needs.
 Computers and tablets (i.e. the iPad) offer many of the
same functions/applications as cell/smart phones, but
still can not meet the core competencies of them.
 Has the possibility of changing to a high power threat
in the future.
RIVALRY
 HIGH Power Threat
 This industry consists of only a few dominating
competitors, but has numerous smaller providers.

 When one competitor releases a new product or
technology, the others are quick to imitate.
THREAT OF ENTRY
 HIGH Power Threat
 The industry has seen a large increase nonconventional
wireless devices (i.e. tablets, smart phones, and wireless
connectivity cards)
 Tablet vs. Smart phones
 Data plan revenue accounted for $41.5 billion dollars
in 2009.
EXPECTED
PROFITABLITY
 There are 3 LOW force threats in total concluded from
the Porter’s 5 Forces Analysis of the Wireless
Telecommunication Industry.
 The expected profitability of the average rival on all
Key Success Factors in this industry is about EQUAL
to cost of capital.
 The profitability in this industry,
overall, is moderately attractive.
Questions or Comments
Sources
 Darlin, Damon. "The High Cost of Loving Your
Phone." www.nytimes.com. New York Times, 11 June 2010.
Web. 5 Apr. 2011.
http://www.nytimes.com/2010/06/13/technology/13ever
y.html
 Thormahlen, Casey. "Wireless Telecommunications
Carriers in the US." Ibis World .51332 (2010): 1-52. Web. 29
Mar. 2011.
 Moorman, James. "Telecommunications:
Wireless." Standard & Poor's Industry Surveys (2011): N. pag.
Web. 5 Apr. 2011.

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