CaSe StUdY cHaPtEr 2

EXAMPLE THE TRADITIONAL TELEPHONE





1.Do you view this technology as a potential threat to traditional telephone companies? If so, what counter strategies could traditional telephone companies adopt to prepare for this technology.


Yes, i agree with techmology potential threat traditional companies to used generic strategic that is diffferentation.For the development of a product or service that offer unique attributes that are valued by customer and that customer perceive to be better than or different from the product of the competition.When the companies used the differentation the companies can produce more product or service to their customer request.Companies  can  variety their product to the market for example Nokia product many models of nokia phones you can look out.From the old trend model until the
 sophisticated.It is a expand. When customers use smartphones easy for business customers. Easy for customers to pay the bill with ease. No need to rush.Easy to communication even remote instance when we are engaged in the business from the outside.

 2.Using Porter`s Five Forces describe the barrries to entry for this new technology.

By using Porter Five Forces the describes to entry for this new technology is the first the threst of subtitute product and services.For example from the case the company substitute the credit card into a cell phone , the barrier is it maybe not fullfill the customer satisfactionSome customer more prefler using IT.It is the best practices in daily life maybe the cell phone only can buying something like can of soda only but it`s will not new bank must offers online paying bills.The can a cess it very fast by use a finger tip.

3.Which of Porter`s three generic strategics is the new technology following ?

-cost leadership

• becoming a low cost producer in the industry allows the company to lower prices to customer.
• competitors with higher costs cannot afford to compete with the low-cost leader on price.

-Differentiation

• create competitive advantage by distinguishing their products on one or more features important to their customer.
• unique features or benefits may justify price differences and stimulate demand.

-Focus strategy

• target to a niche market .
• concentrates on either cost differentiation.

4.Describe the value chain of the business of using cell phones as a payment method.

• Merchants – accept payments from the consumers by reading the card at the Point of Sale (PoS) machine
• Acquirers – hold merchant accounts and manage merchant payments
• Payment networks – Connect and switch transactions between merchants & issuing banks
• Issuers – manage consumer accounts and also take the associated risk
• M-Wallet/Stored Value Account (SVA) – Issue and provisioning of the mobile wallet/SVA (only if case mobile payments) ....CLICK HERE

5.What types of regulatory issues might occur due to this type of technology?

Issues that occur in technology right now is fraud. The issue that often happened was double charges. Often when bisness right amount in conditions not are disclosed in documents. So customers do not know the actual number of customers paying double jumlah.so there something customers will think there is fraud in the business. Moreover, we use the identity of others. We can use the identity of others to menupu clients such as identity cards and others.