Sunday 16 December 2012

Answer to a chapter 2 case study : say "Charge It" with your cell phone


 assalamualaikum peeps. here the answer for the question that madam had given to us by form a group of member to discuss this case study and me discuss this answer with my partner, Fariddudin.


1) Yes, It is a threat to traditional telephone companies. Mobile phones have become such an important aspect of everyday living and have given rise to a vast array of cellular phone companies to answer the demands to this huge market. This competition among companies has dramatically raised the quality of cellular phones, as the makers strive to create product offers that are better than of the competition. Gone are the days where a cell phone is just used to make and receive calls and text messages. The demand for cellular phones is just as great, if the Traditional telephone companies not adopt to this changes of technology, Yet it will being abandoned and forgotten.
Traditional Telephone companies should adopt changes of technology such as phone can do banking, connect to the internet, take high quality photos, play music, watch movies and the users can install a variety of applications through the Android or Istore that allow the users to do all sorts of things – a technological advancement that would have sounded absurd just twenty years ago. The demand for cellular phones is just as great as the demand for serviced apartments as everybody wants to have the best on the market and this is counter-strategies that will cover from all aspect to ensure the traditional phone can compete as well as other Telephone Companies does it.

2. The barriers to entry for this new technology based on Porter’s Five Forces are :
1.           The threat of the entry of new competitors
2.           The intensity of competitive rivalry
3.           The threat of substitute products or services
4.           The bargaining power of customers
5.           The bargaining power of supplier


3. The company choose to practice the focused strategy based on the three generics strategies. It is because to target to a niche market and they concentrates on cost leadership. to become a low cost producer in the industry allows the company to lower price to customers and target the narrow market such as the phones specified for elderly people yet competitors with higher costs cannot afford to compete with the low cost leader on price.

4. The Value Of The Business of using cell phones as a payment method
In any payment mechanism, the key entities of the value chain are:
1.    Merchants – accept payments from the consumers by reading the card at the Point of Sale (PoS) machine
2.    Acquirers – hold merchant accounts and manage merchant payments
3.    Payment networks – Connect and switch transactions between merchants & issuing banks
4.    Issuers – manage consumer accounts and also take the associated risk
5.    M-Wallet/Stored Value Account (SVA) – Issue and provisioning of the mobile wallet/SVA (only if case mobile payments) 

Mobile payment is a part of the mobile transactions and is catching the imagination of a lot of people. This is clear evident from the number of comments I got on my last post “Mobile Payments – Will the Consumers Adopt it”.  In the last post, I had discussed the consumer issues. Now I am going to talk about the emerging business models in the mobile payment space and the pros and cons of each of the model.

5. Types of regulatory issues might occur due to this type of technology ?
I- software patents
II- Blatant copying
        Eg: Galaxy products use Google's Android operating system, which directly competes       with Apple's mobile software.
III- violated patents and trademarks
 In the world of smart phones and tablet computers, being sued for alleged patent infringements could be considered a badge of honour, a sign your products are cutting edge, a threat to rivals.
Eg: Apple is suing the likes of Motorola, HTC and Samsung; Nokia is suing Apple; everybody counter-sues each other. 
 That's all for this discussion, thanks much for reading . zaijian 
 

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