The quality of the strategy and the nature of the Orange Group will be established with the analysis of Porter's five forces. Indeed, by examining them, it is possible to identify the key success factors of the sector and to understand the elements to master in order to outdo the competition.
Using the pattern of Porter, we observe that it helps us to clearly list the problems facing the Orange mobile phone sector, taking into account the new entrants, the intensity of competition and the bargaining power of customers, threat of substitutes and finally the power of suppliers.
Tags: Orange Group analysis, Porter's theory, Orange mobiles
[...] Threat of substitutes: 1/10 Competition in terms of substitutes or in terms of direct competition would indicate the intensity of competition. The only substitute that could be cited for a phone is the mobile phone that is positioned as a substitute for fixed line and vice versa. Power of suppliers: 3/10 On the one hand suppliers are easily replaceable. Moreover Orange holding the largest market share in the market of mobile telephony, it is one of the largest customers in the industry. Suppliers can not afford to really discuss the prices they offer. [...]
[...] The pressure is such that the three largest mobile operators have tried to pass a secret agreement to stabilize their respective market shares by exchanging confidential and strategic information on trends in the number of their subscribers after months. This case has also recently created a scandal and the three companies involved are forced to pay an impressive fine of 534 million euros. Bargaining power of customers: 3/10 Customers are now very numerous, since according to a study by INSEE of the population has a mobile phone. Moreover, they cannot insert upstream. While products and offers end up being poorly differentiated, the range of choice is very wide in terms of phones and in terms of packages. [...]
[...] The diagram below helps to clearly identify the problems faced by the sector on Orange mobile phones: New entrants: 5/10. New entrants are regular, it is thought to include Virgin or M6. However, it is difficult to deal with industry heavyweights that can represent Orange and Bouygues Telecom. That is why they have a low market share and although their share is increasing, they remain as yet bit threatened. All this is partly explained by barriers to market entry that remain strong because of the technology, the popularity of incumbents or the high cost of advertising required. [...]
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