Essay on The evolution of Meteor

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Meteor in the Irish telecommunications industry

Meteor Mobile was established in 2001, after having been awarded Ireland’s third mobile license in the year 1998 (ComReg, 1998). Since then, the Irish start up has acquired over a million customers and built over 40 stores nationally (meteor.ie,2013). Over the course of 12 years, Meteor has become one of the 50 best workplaces in Ireland and obtained 20% of the market share (meteor.ie, 2013) in a very tough and fast developing industry.

In this essay I will assess the attractiveness of the Irish telecommunications industry before and after its deregulation in 1998 by analyzing the forces at work within the market. I will also describe Meteor’s strategy at the time and attempt to point
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Furthermore, there was no threat of forward integration by the suppliers. As the customer base was so small suppliers depended on the wellbeing of the industry to succeed. All of these factors made supplier power very low making the industry very attractive for firms.

It is also important to address the threat of substitute products available to the market. These are products which meet the same needs as those sold by the industry. Porter argues that substitute products will limit the potential of an industry (Porter, 1979) by diminishing its growth. Back in 1998, there were not many substitute products apart from landline services. The lack of very similar substitutes in the industry contributed to its attractiveness.

In an industry composed of various players, there is guaranteed competitive rivalry. Competitive rivalry tends to be higher if there are many current and potential competitors (Porter 1979). In the case of the mobile industry in 1998, there were only two players, which meant that competition was very little. Furthermore, the market was very small, another factor limiting competition. Consumer loyalty and retention were high as people were tied into contracts. This also reduced the competition within the market. Low competitor rivalry is another attractive factor, as the firms didn’t feel threatened by others also in the industry. In conclusion, from the analysis it is clear that the

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