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    Porter's Five Forces Analysis - British Telecom

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    The questions are below.

    Porter's Five Forces Analysis of British Telecom (BT)
    ** Must include graphs when useful and, more importantly, references to source material

    Topics to answer for assignment:
    1: Provide a description of British Telecom and a short history of them.
    2: Describe the market.
    3: What is the product line and geographic region served?
    4: Consider the competition. How many firms are direct competitors to British Telecom?
    5: What do you believe the 4-firm concentration ratio is in this market? Is British Telecom one of the 4 largest firms? Are all firms the same size? Is there a large amount of price competition or non-price competition in this market? Or both? Explain.
    6: How easily can new competitors enter this market? What are the barriers that prevent entry? When was the last time a new competitor entered this market?
    7: Beyond direct competitors, are there other firms that you view as providing a substitute to British Telecom's product? Who are they? How close to a substitute is their product? What is the potential for these other firms to become direct competitors of British Telecom?
    8: Does the success of British Telecom's product, that is their sales, depend on the success of sales by another firm? Has British Telecom formed a sales alliance with another firm? (Could be a joint marketing campaign perhaps)
    9: Does British Telecom have a degree of monopoly power in buying raw materials, negotiating labor contracts, hiring, or borrowing funds? Do they have a significantly different relationship with suppliers than other companies in the industry? Or, does everyone face the same basic prices for inputs in production (basically discuss vertical integration)?
    10: Does British Telecom have a degree of monopoly power in selling their product? Why or why not?
    11: Do buyers of British Telecom products have a degree of monopoly power? Why or why not?
    12: What external factors do you believe play a large role in the success or failure of British Telecom? Explain why?
    13: Considering all of the answers, what is the greatest source of risk and uncertainty for British Telecom? Why?

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    Solution Preview

    Running Head: COMPANY ANALYSIS

    Porter's Five Force Analysis- British Telecom

    Company Description
    British Telecom is one of the largest telecommunication operators in the United Kingdom. It is the largest provider of fixed line telecommunication and broadband internet in the UK. It operates its business in more than 173 countries around the globe and headquartered in the City of London. . It is also one of the biggest companies in the telecommunication industry in the world. It is also a larger company in terms of revenue from its global service divisions. It offers network services to the businesses, which provides advantages to them. The main advantage of the British Telecom is that it provides communication network services according to the change in business demands. It employs 37000 employees in 53 countries to provide effective network services to its customer all over the world (British Telecom, 2010).

    The British Telecom was first introduced in the year 1980 by the official name of Post Office Telecommunications. Initially it was state owned corporation, which was privatized in the year 1984 by selling 50.2% share to the public. It was incorporated as British Telecommunication Plc in the year 1984, which changed its trading name into BT in the year 1991. In order to achieve global exposure it engaged in alliance with AT&T, MCI, which make it the largest telecommunication company in UK.

    Market of British Telecom
    British Telecom operates its business in 53 countries and provides services in 173 countries in all over the world. It is listed in the stock exchange of London and New York. The main services of it are the fixed line telecommunication and broadband internet services to its customers. It covers the 97% of the British Telephone market. The British Telecom also provides retail communication services to the customers. The market segmentation of the company very large as it includes variety of services such as retail services, wholesale services, and global services. The main target of the company is the organizations and industries, which requires a large amount of communication in their multinational business operation. It provides several services globally according the need of the consumers. The wide rang or products and services of the British Telecom help the businesses to increase their profitability in this complex business environment.

    Product Line and Geographic Regions
    The product line of British Telecom includes four product categories, which are as follow-
    ? Packages - It includes calls and broadband packages and broadband and TV packages.
    ? Phone - Calling plans, new phone lines, mobile calls, international calls, BT basics are the important product under this product line.
    ? Broadband - It also includes a wide range of broadband products to attract more customers.
    ? TV - It also includes value packages, free views, vision boxes in this product line category (British Telecom, 2010).

    Geographic Regions:
    The business services are provided worldwide by the British Telecom. It serves the following geographic regions around the globe -
    ? Asia Pacific - China, Hong Kong, India, Sri Lanka, Korea, Indonesia, Singapore, Taiwan etc. are the some important countries in Asia Pacific in which BT operates its business operation.
    ? Europe - It covers most of the countries in Europe such as Australia, France, Germany, Hungry, Italy, and Poland etc.
    ? Middle East & Africa - Kuwait, Omen, Egypt, Saudi Arabia, Turkey, and UAE are the some important geographic regions for the British telecom.
    ? North & South America - It also serves most of the states of the North & South America including US and Canada (British Telecom, ...

    Solution Summary

    Porter's five force analysis for British Telecom is examined.