T-mobile is a leader in Hungary compared to the other providers, since it has existed the longest in Hungary and the other two providers are the followers

 TMobile, as the leading, innovative operator offers top quality services to its pre-paid and postpaid customers and in addition to continuous renewal and innovation it consistently strives for offering the most sophisticated services available in the mobile market to its customers. As appreciation for the reliable mobile services the operator was the first Hungarian large company to earn the reputed European Quality Award, rewarding the very best corporations.

The company supports, sponsors athletes, researchers, students, artists, education and healthcare institutions as well as those in need. As an efficient, internationally reputed company, TMobile Hungary Co. Ltd. behaves responsibly concerning its micro and macro environment by protecting human values and being committed towards creating social values.

Simultaneously with introducing the TMobile brand the company joined FreeMove, the world’s largest mobile alliance with the purpose of rendering simple and advantageous mobile telephone usage by offering discounts on international roaming, harmonised services and joint terminal procurement to its customers.

We also have to identify the forces which affect the level of competition in an industry, and which might thus help managers of such companies to identify bases of competitive strategy. For this analisys the most effective way is using porters five forces modell.

                                                   Risk of entry of

                                                 potential customers

    Bargaining power                Intensity of rivalry among                     Bargaining power of

       of suppliers                           estabilished firms                                         buyers

                                                  Threat of substitutes

Porter’s five forces modell:

1. Competitive rivalry:

Organisations need to be concerned with the extent of direct rivalry between themselves and competitors. The most competitive conditions will be those in which entry is likely, substitutes threaten and buyers or suppliers exercise control.

• level of competition affects market’s balance
• Importance of differentation
• Market growth rates- for example in situations of market growth through the growth in the market place; whereas when markets are mature, this has to be achieved by taking market share from competitors.
• The existence of development of global customers – may increase competition among suppliers

2/A Bargaining power of buyers

All organisations have to obtain resources  and provide goods or services; this is what has become known as the supply chain, value chain or value system of an organisation.

· low cost of switching

· upgrading is more important than market

· controll innovation and new functionality

3.Threat of Substitutes

· P 4 P Product- for-product substitution-

· substitution by need - by a new product or service rendering an existing product or service

· generic substitution – it occurs when products or services compete for need

4. Threat of Entry

Threat of entry to an industry will depend ont he extent to which there are barriers to entry.

· capital requiriments of entry – the capital cost of entry may vary according to technology and scale

· access to distribution channels

· legislation and governmental factors

· differentiation – provision of a product or service regarded by the user  as different from and of higher value than the competition.

PEST ANALYSIS

Political and Legal Factors

Political factors have increased in toughness for mobile phone operators as phones become more advanced. In particular the way in which billing information is handled in the future will be affected by new anti-terrorist legislation imposed by the government.

The 3G mobile phones are expected to obtain data pinpointing the whereabouts of the mobile phone user to within a couple of meters. It is proposed this information is retained in the future for longer periods than mobile operators have done so in the past in order to attempt to locate criminal movement.

The Hungarian government has invested in independent research into health affects of mobile phones. The outcomes have been inconclusive, however scientists have stated the use of mobile phones does affect brain activity. This is not proof of damage, however the government is keen to have an answer and this could affect the use of future mobile phones.

         Otherwise, the mobile operator network is compulsory for the country, meaning that there is a big support from the government.

Economic Factors

The current economy in Hungary can be described as developing. In such situations the public have an increasing disposable income enabling a trend to spend more money on luxury items. This can be a decisive factor for more people to join the operator service of T-Mobile. Businesses and individuals unsure of their financial standing would begin to spend less on items not deemed necessary.

The way of avoiding such dramatic affects of economic change is to perceive the goods as 'must have' products. Marketable to businesses as a return on investment due to increased efficiency could be argued. This is less likely to be adopted by individual users.

Social Factors

T-Mobile is a popular operator, at the same time people in Hungary are not entitled to a very wide choice. There are only 3 operators, each having their advantages and disadvantages. Its hard to say that any of the 3 has an outstanding lead on the market. There is increasing concern with the number of masts being erected which form the networks supporting the mobile phones. As the number of mobile phone users increase, and we move into 3G technology where a higher number of masts are required to support the technology; the public are becoming concerned of the impact masts are having upon their immediate environment. Although masts have reduced in height, this reduction has been accompanied with need for them to be closer to the user.

Public users have a desire to request information and receive this immediately; this has become a priority in today's fast moving society. This means people have less patience to wait for the information desired and this is reflected in the culture of mobile phone use. 3G has the capability to transfer desired information that is up to date, directly to the handset being used

Technological Factors

The increasing capability of electronics in continually smaller packages enables additional technology to be included with limited affect on the size of the product. This has had a great impact on the capability of mobile phones.

With ability to gain remote access to the internet it is possible to bring the internet information direct to a mobile phone user. T-Mobile has some individual services as do the other mobile operators, but they don’t really differ and therefore cannot count as a technological advantage.

SWOT ANALYSIS

Strengths:

· Quality

· High Technology

· International roaming

· Stable forwarding connections

· Connecting Internet with mobile technology

Weaknesses

· high prices in comparison with competitors

· to much confidence

· not appropriate reactions to the competitors strategies

Opportunities

· New technologies

· possibility of expansion due to changes

· Sophisticated team

· good management

· third generation technology

Threats

· Threat of high prices within the industry

·existing and emerging opportunities – market politics of competitors

· new substitutes

· high expextations from the top level management

STRATEGIC GROUP ANALYSIS

Its important to do a strategic group analysis because it helps companies, in this case T-mobile, to identify organizations with similar strategic characteristics folowing similar strategies or compeeting on similar bases. Such groups can be identified using two or perhaps three sets of key characteristics as a basis of competition.

The following three characteristics will be examined throughout our analzsis.

· Extent of geographical coverege

·Pricing policy

·Technological Leadership

Extent of geographical covarage:

T-mobile and Vodafone exists in many different countries, but Pannon GSM only exists in Hungary.

T-mobile exists not in Europe and in the United States. Since T-mobile only exists in only two continents, they have different strategies than Vodafone and Pannon GSM. They “only” focuse on the European market and the American market and their needs. T-mobile have partners all over the world, which makes it possible for the customers to use the service around the world. T-mobile exists in the following countries:

USA

Germany

Great Britan

Austria

Netherlands

Czech Republic

Poland

Russia

Hungary

Croatia

Vodafone exists in the following countries

 - Vodafone
 - Vodafone
 - A1
 - MTC-Vodafone
 - Proximus
 - China Mobile
 - VIP
 - Cyta
 - TDC Mobil
 - Vodafone
 - Radiolinja
 - Vodafone
 - Elisa
 - SFR
 - Vodafone
 - Vodafone
 - Vodafone
 - Og Vodafone
 - Vodafone
 - Vodafone
 - Vodafone
 - Safaricom
 - MTC-Vodafone
 - BITE
 - LUXGSM
 - Vodafone
 - Vodafone
 - Vodafone
 - Plus GSM
 - Vodafone
 - Connex
 - M1
 - Si.mobil-Vodafone
 - Vodacom
 - Vodafone
 - Vodafone
 - Swisscom
 - Vodafone
 - Verizon Wireless  

Pannon GSM is the only company that focuses on one country only where it was originated.

Pricing Policy:

At T-mobile the cost of the call is not the cheapest out of the three providers. Ont he other hand it is the only provider from which one can buy a phone and not pay a forint for it, but has the oppertunity to pay for it monthly through one year. At Pannon GSM you have the oppertunity to buy a phone on credit, but you have to leave some mony at the start unlike at T-mobile. At Vodafone it is the same case a sin Pannon GSM, with the difference that it is the most expencive to buy a phone at Vodafone out of the tree providers. Ont he other hand it is the cheapest to make calls from the Vodafone network and the most expensive to do so from T-mobile’s network. All three providers have the pre paid cards available for the custemers.

Technological Leadership (Leader or Follower):

T-mobile is a leader in Hungary compared to the other providers, since it has existed the longest in Hungary and the other two providers are the followers. Vodafone entered into the Hungarian market the latest, but has already have a pretty good market share because of their attractive priceing strategy as mentioned before. If we look at the worlds market in general, Vodafone is the leader and T-mobile is the follower, since Vodafone exists in much more countries than T-mobile. Pannon GSM is a follower in Hungary and worldwide as well. If we look at their technological side, T-mobile has the best coverege out of the three, since they have built a very good network throughout the years. Pannon GSM comes next on the imagenery stairs, which has good coverege as well, but not as good as T-mobile. Vodafone is on the last place, since they did not have enough time to build a good network yet. This is why when Vodafone was first introduced in Hungary at the beginning they used other providers network towers.

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