Essay: Porters Forces Analysis
Bargaining Power of Buyers
The barging power of the buyers is limited in the fixed line industry while being strong in the wireless industry (‘Industry Profile: Wireless Telecommunication Services in theUnited States’, 2008). This is due to the large percentage of consumer and business segment customers which have diverse telecommunication needs for the products and services provided in the industry (‘Industry Profile: Wireless Telecommunication Services in the United States’, 2008).
Bargaining Power of Suppliers
There are not many suppliers in the market which makes way for a high bargaining power of the suppliers (‘Industry Profile: Global Fixed Line Telecoms’, 2007). They supply process in the industry is complex with the requirement for regional and worldwide reliable and efficient network. As a result the suppliers have the power to dictate their terms for entering into a contract with a telecommunication company in the industry.