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Analysis of the telecommunications industry

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Table of contents Abstract 1. Introduction 2. Industry Structure 3. DRETS analysis 3.1 Demographic 3.1.1 Aging population 3.2 Regulatory 3.3 Economic 3.4 Technological 3.5 Social 3.5.1Trends in the use of mobile packages 4 Opportunities and threats 5. Porter's 5 Forces analysis 5.1 Power of buyers 5.1.1 Information on package costs 5.1.2 Switching costs 5.1.3 Loyalty 5.2 Power of suppliers 5.2.1 Evolving value chain 5.2.2 The complicity of the value chain earlier and now 5.2.3 Orange AS 5.2.4 More Complex Value Chains 5.3 Threat of substitutes 5.3.1 Skype 5.4 Threat of new entry 5.4.1 Chance for market entry 5.4.2 Ways of entry 5.5 Rivalry 6. Competative analysis 6.1Market share 7 Commonalities and Differences 7.1 Commonalities 7.2 Differences 7.2.1 Product/Service range 7.2.2 Price 7.2.3 Positioning 8. Orange 8.1 Call centres 8.2 Recommendations for improving call centres using Disconfirmation Model of service quality Bibliography Appendix - list of tables Abstract This report will provide an analysis of the telecommunications industry. In doing so it will look at the industry structure, identify sub-sectors and major players within them and look at the services they provide. This report will focus on mobile services operators and particularly the mobile voice and data (SMS) services they provide. In the end it will look at one major player, identify service operation issues and give recommendations on how to enhance the service. This report will also look at trends in marketing environment using DRETS analysis which will help to identify opportunities and threats for the industry. Then it will look at forces that drive industry development using Porter's 5 Forces module. Continuing with commonalities and differensis in operation of major players Commonalities and differences between the industry's major players will also be given consideration. 1. Introduction The telecommunications industry is one of the most competitive, changeable and complicated in the UK. It is highly driven by technological development and by its increasing importance for the world's economy and for society. ...read more.


Frequent telemarketing, TV advertising, celebrity endorsements, billboards, radio and bulk mail inform consumers of the various long-distance rates and services that are available. Although consumers possess significant leverage, mobile service providers are fortunate in that the product they offer is virtually a necessity. Usage may vary but every developed area will employ these services regardless of the cost. This is why the government is so involved in protecting the consumer. Additionally, long-distance providers have an extremely large pool of consumers to target. The impact of loosing a few clients is relatively insignificant, considering the billions they still have the opportunity to acquire. According to the Ofcom report more than 50% of consumers of mobile services prefer pre-paid services, as it is easier to switch network suppliers.19 5.2 Power of suppliers The value chain in mobile communications has considerably changed with the inclusion of services other than basic voice and data services. In the past providers of mobile telecommunications services also were network providers. Technological and software infrastructure was naturally already integrated into the network. Therefore service providers did not have to work with a lot of other suppliers and were in a relatively strong negotiating position towards suppliers of application devices and systems integration for example. However nowadays we typically see an expanded value chain that includes a wide range of suppliers. For instance the delivery of a music download via mobile device involves the record publisher which typically holds and controls the content rights of music delivered and thus becomes a part of the value chain. The application necessary to access the content via a mobile phone comes from an application service provider like Virgin Mobile.20 Moreover, mobile virtual network operators (MVNOs) such as Virgin Mobile that do not have their own infrastructure deliver their service platform involving another supplier platform as T-Mobile. "Finally, consumers access the service using a mobile phone. This growing complexity in the value chain has made it more difficult both to measure the size of the mobile telecommunications ...read more.


This issue will be further discussed and given solutions and recommendations now. 8.1 Call centres Good customer serviceis vital for service industries as the quality of customer services is directly linked to the success of the company. It is found that quality of services provided by call centres is affecting customers "willingness to buy from a company, their perception about a company and the possibility of recommending a company to others." "According to the survey almost all business professionals (98.9%) indicated that poor consumer services by a company's contact centre would make them have negative perception about the company as a whole. On recommending a company to others, it was found that about 91.5% of professionals thought a negative experience from a firm's customer service point, would deter people from recommending a firm to others." "Contrary to the negative effects of poor contact centre services on branding and marketing efforts, positive call centre experiences among customers will have a positive impact on an organisation's fortunes."35 8.2 Recommendations for improving call centres customer services using Disconfirmation Model of service quality This model is based on expectations and performance of the service following by satisfaction or dissatisfaction about the company.36 The expectations to such a company as Orange are high. The performance does not meet the expectations. There are measures that can be taken to increase customer's satisfaction about call centre customer services. Firstly "Telephone inquiries at call centres should be answered as quickly as possible as six or more rings before a customer is connected is unacceptable." Secondly, "companies using automated call centers may have to add live operator services to fully meet customer satisfaction. "Most prefer to speak to an actual person rather than an automated system - respondents who were initially connected to a 'live' operator were significantly more likely to be satisfied with the service experience than those connected to an automated menu,"37Finally, "As much as possible, call centre representatives should avoid putting customers on hold for long periods as putting customers on hold for three or more minutes could have a negative impact on a company's image. ...read more.

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