MARKETING

Marketing Management Model for Mobile Network Operators



Table of Contents

Introduction1

The UK mobile network provider industry1

Mobile Virtual Network Operators2

Porter's 5 forces model - Analysis of the MNOs3

Competitive Rivalry within and Industry3

Threat of New Entrants4

Bargaining power of Supplier5

Bargaining Power of Customer5

Threat of Substitute Service and Product6

Conclusion7

References8

Marketing Management Model for Mobile Network Operators

Introduction

The mobile phone industry has achieved phenomenal growth throughout the world. This is true not only for the developed nations but also for the developing countries. The change in consumer dynamics and the resultant increase in the mobility of cell phones has given rise to many other industries. The mobile phone industry consists of the mobile manufacturing firm, mobile network providers and distributers and others. These make up the Mobile phone industry. This industry is marked by cut throat competition and innovation is the only strategy for survival (Karla, 2011, p. 67). More and more companies are employing various marketing management models to improve on their offering and become the brand of choice. The Mobile network operator's industry in the UK is a rather huge one. The paper discusses the marketing management model given by Michael Porter called Porter's five forces model in the light of mobile network providers.

The UK mobile network provider industry

The mobile network providers in the UK are providing competitive and modern service to its valued customers. These include MMS, GPRS, WAP, 2G, 3G and other services. In addition, the mobile network operators are focusing on coming up with new and innovative services for its target audience. For instance, the internet on the handset is faster than ever. The browsing takes place so quick as if u were using a computer (Asif, 2010, p. 164). In addition, the competition in the industry has benefitted the end consumer. Other the improvements in the services provided, the tariffs have become a major point of war for these companies. However, this has not led to price war as yet. Price war is a scenario where two or companies cut down on their prices only as a means to get the competitor's customers who has cut down on his prices. This struggle continues to the point where the two cut down their prices even at a point lower than that of their cost.

When it comes to the UK mobile market, the coverage of mobile network takes place in accordance with the geographical divisions in US. These are Scotland, Northern Ireland. England, and Wales. The number of mobile subscribers in UK is around 73.1 million (Kimiloglu, 2011, p. 39). This makes UK one of the top and most lucrative markets for mobile network operators. Out of the total number of mobile subscribers in UK, 9% are concentrated in UK alone. In addition, the number of subscribers is still increasing in the UK. The most significant increase will take place in the wireless market segment. There are many mobile phone operating companies in the UK. These include Vodafone, o2, T-Mobile, Orange, Virgin Mobile, 3 / Three, Tesco Mobile, and ASDA ...