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Five Forces Analysis of the Prepaid Mobile Phone Industry

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Using Porter's 5 forces of competition, assess the prepaid cell industry. The goal is to be able to assess the industry's overall attractiveness and identify several key success factors. A discussion of the advantages and disadvantages of prepaid cellular products and services is discusses in relation to the five forces.

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Solution Summary

This discussion includes analysis of the prepaid cellular phone industry, as Porter's five forces are applied.

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The examples provided are just a few that apply the five forces. There may be others but these are important considerations in the prepaid cellular industry. Below are some additional resources on prepaid cellular markets and plans. Very interesting reading as well.

http://www.platinumtel.com/news/pr

http://www.boygeniusreport.com/2010/05/06/sprint-gets-super-serious-about-the-prepaid-mobile-market

Porter's Five Forces Applied to the Prepaid Cellular Industry

Bargaining power of suppliers

Suppliers are manufacturers of phones or resellers of reconditioned cellular phones. Major
carriers like AT & T and Verizon are suppliers, whose towers are used by many prepaid service plan
carriers. Suppliers are able to offer use of their towers to other carriers of prepaid plans for a fee.
There are some drawbacks. While nationwide coverage is provided with many prepaid plans, some
features are not available, regardless of the phone's capabilities. With many prepaid plans, a user
cannot access the internet or has limited email capabilities. This is due to issues with bandwidth,
which is required for any feature on a cellular phone. The more bandwidth, ...

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  • BSc, DeVry University
  • MPH, Walden University
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