CHAPTER 2

                             CHAPTER 2 CASE: SAY" CHARGE IT" WITH YOUR CELL PHONE

 

 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 am totally agree that traditional telephone companies can take the technology as a potential threat to
the companies because based on " THE THREE GENERICS STRATEGIES" the company may prefer to
choose "DIFFERENTIATION ". The company may create competitive advantage by distinguishing their
products on one or more features important to their customer. for example now days every body want to
make all of their work become easy n fast.so for the company if they make a new product it will help the
customer and may increase their satisfaction to solve their problem. such as to make a bill payment. through
their smartphone it will help their customer to make the transaction easily without wasting their time. other
than that, the unique features or benefits may justify price differences and or stimulate demand. for the
customer, they already have a different taste and needs so if the company produce the variety products
maybe it will fulfill the customer needs..:)..


2) by using Porter's Five Forces describe the baries to entry for this technology.

by using Porter's Five Forces, the describe to entry for this new technology is the first threat of substitute product. for example the barrier in threat of substitute product and service happened when too many technology product exist at the market they want to be the best product among the customer. they want to be the best because they do not want their customer find another product and change their tastes. customer have many choices to satisfy their want and needs. for example to surf internet. customer may use the smartphone, such as mobile phone. now in the market they various types of mobile phone that have their own technology such as they use of technology samsung using the android system and ios system is using by the blackberry. therefore, customer can find their own to meet their taste because they will try to find something that will satisfied in their life.
3) which of porter's three generic strategies the new technology following?

Porter's three generic strategies by this new technology is differentiation. which is it can a give competitive advantage by this distinguishing their product on one or more features important. all of the product have their own quality and singularity . so if they want to beat the other product they have to perform their product rather than other product. for exam APPLE products, they have their own style in form of appearance and sophistication.

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

the value chain is  a payment method to improving an a technology development and also increasing infrastructure of phone companies. the payment method can receive information from the consumer purchases and they will send it to the phone company . then, more people will more likely this type of payment method for every business.
5) what types of regulatory issues might occur due to this type of technology

types of technology that might occur due to this technology is fraud. the fraud can be happen at the buyer and the supplier side. for example, the children us the credit card of their parents without permission . for supplier side, they will make double charges without customer knowledge.