Telecommunications Industry in Pakistan

The five forces of rivalry is an efficient method that companies apply to facilitate their ventures to locate most valuable industry for its business. These five forces

Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry

Competitive Rivalry As you study the model, you will see that the rivalry is the component that all the competition and their threats centers around. Please describe this for Company G.

The Intensity of Rivalry among Competitors in an Industry (High): Equally balanced competitors exist within the industry such as BCF and KMD; these firms also face competition from retailers and wholesalers. The growth of the industry is relatively agile in both financial and technological aspects. The intensity or rivalry is further accentuated by relatively high storage and fixed rental costs, extensive product differentiation and minimal switching costs.

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

High level, intense rivalry may result with profit lost for the company. In most cases, new entrant barriers are high due to the intensity of rivalry (Porter, 2008).

As we begin to strategically plan for our business, it is important for us to take a deep dive into our competitive environment to understand where we are strong competitively and where we are weak competitively. An analysis of the forces driving industry competition using M.E. Porter’s Five Forces Model will assist us in determining where the power lies in a business situation as we begin to plan. We must understand how they work in our industry and how they affect our particular situation. Whatever the collective strength of these forces is, our job as the strategists of the organization is to

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

Competitive rivalry is important because it shows what you competitors are capable of doing and it shows how many competitors you have. You will not have a lot of power or control if your competitors have products and services that can easily match your companies. You have to find some type of competitive advantage to bring customers to your company and not their company. But on the other side of things, if you are the only one doing something specific, then you can often have power and control. Threat of New Entrants is important because it lets people into your market which affects a lot of things when it comes to doing business. Power is also gained and lost by the ability of companies to come into your market. If it is easy for a company to gain access to the market that your company is in, then many companies will do so and your power and control that you once had will be spread out to many other companies. If you have strong barriers against other companies gaining access, then the power and control that you have will be yours and you will not have to share it amongst others. Power of suppliers is where you can see how easy it is for suppliers to drive up

Competitive rivalry: Competitive rivalry or rivalry among existing firms is used to decide the strength of competition among the businesses in a particular industry. As per the current industry data, the competition in the magazine retail company is high since there are huge number of magazine sellers in the industry. MagsRus has a high intensity of rivalry and that means the other competitive businesses are forcefully focusing on each other's business sectors and forcefully pricing items. This speaks to potential expenses to all competitors inside the

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include:

The market covered in the telecom industry are mobile phone, fixed line, broadband, internet etc. by the above figure we can say that the growth rate of telecom industry is positive 33 % from 2006- 2013. And future it will be increase more because it’s now leading industry in the world.

To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’

 In general, manager’s look at competition has been too narrow. There is a broad set of competitors that need to be looked at, which are described in “The Five Competitive Forces That Shape Strategy” by Michael E. Porter. The model explains that there are several other forces in the competition for profits that the strategist should be aware of when forming a stagey. Those forces determine the profitability of the industry and are the most important to look at when you are forming a strategy. These five forces are are the “industry structure” model which contain: New Entrants, Suppliers, Buyers, Substitutes, and Existing Competitors.