Executive Summary:
Global Telecommunication Industry is one of the largest global industries with heaps of competition involved. It is also one of the oldest industry. I have analysied this on the basis of Michael Porter’s five forces Analysis to get the gist of the industry. Telecom products have evolved over a perios of time and with lot of major inventions in the industry it is very hard for any company to survive in this global market. Started with the smoke signal which was good for only a certain distance the products have evolved to such an extent that now one can communicate with any one around the world using internet and mobile phones. Even though the traditional telephone is the major revenue generator the other technologies and substitues are growing in heaps and bounds. Also with the major companies like AT&T, Telstra, Verizon, Vodafone, BSNL to name a few the competion is cut throat. Also it is physically almost impossible for any new firm to enter the market as it requires a hugh sum of finance and with all these giants in the market to survive would be practically impossible for the new firm. Because of this huge competition and rivalry the buyers that is the customers are the one who are most widely benefitted with these as they are having a great variety of service providers to chose from and hence forth decreasing the companies profit margin because of the hughe amount of cost pressure. Bt on the other hand the telecom equipments manufacturer that are the suppliers are not happy as they also have a lot of competition with giants in the field like Nortel, Lucent, Cisco, Nokia, Alcatel, Ericsson, Tellabs to name a few. Hence they are having very less bargaining power as the telecom service provider have a lot of options available. Hence based on ...