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Case Study of P1

1.0 Introduction 1.1 Company Background Packet One Networks (Malaysia) Sdn.

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Bhd. (P1) was launched on August 18, 2008 as a subsidiary of Green Packet Bhd, which is a leading global developer of Next Generation Mobile Broadband Networking Solutions. P1 is Malaysia’s first and leading WiMAX telecommunications company with the country widest WiMAX network and it represents the first large-scale commercial deployment of Mobile WiMAX in Southeast Asia, as well as the first large-scale deployment of an 802. 16e WiMAX network outside Korea. P1 was one of four companies awarded 2. GHz spectrum licenses by the Malaysian Government to deploy WiMax services throughout Malaysia (www. p1. com. my, 2009). 1. 2 Company’s vision P1 objective is to become the market leader in wireless broadband industry. To achieve that, P1 are now putting their effort on broadening wireless broadband connectivity across the region in order to capture more market. (www. p1. com. my, 2009). 1. 3 WiMAX WiMAX is an abbreviation of Worldwide Interoperability for Microwave Access. It is a standard-based technology enabling delivery of last mile wireless broadband access as an alternative to cable and DSL.

WiMAX enables deliverables of bandwidth between two points or between a point to multipoint to customer. The usage of WiMAX requires certain bandwidth of spectrum to be allocated to the service provider, in accordance to the channeling plan approved and published by Malaysian Communications and Multimedia Commission(MCMC) (www. greenpacket. com, 2008). 2. 0 Michael Porter 5 Forces 2. 1 Threat of new entry Telecom industry is one of the industries which have the biggest barrier to enter. Firstly, to enter this industry requires a lot of cash to cover high ixed equipment and innovation cost (Gupta. A, 2008). Secondly, the ownership a telecom license can be one of the biggest barriers to entry, because government may refuse to give license to operator to operate their business (WiMAXian. com, 2009). Thirdly, advertisements to create awareness to public are very costly; it is very hard to draw public attention if there is no enough advertisement since there are so many players in Malaysia. Moreover, skilled human capitals are required to operate the business (Gupta. A, 2008).

Lastly, high exit barriers scared off investors in get into this business, concluding that the threat of new entry is very low. 2. 2 Competitive rivalry As Internet plays a very important role in human’s daily life, most of the people have to in touch with internet every day. So, to attract more subscribers, competitors have to lower down their price and provide more benefits in order to survive since they have invest an enormous capital in this business that with high exit barrier due to its specialize equipment. There are more than 10 internet service providers (ISP) in Malaysia.

Normally, new carriers are used to take low price strategy to attract customers, which lead to a price war (wwwen. zte. com. cn, 2010). Besides that, these ISP do their promotion and advertising frequently as everyone in major city can see it every day and everywhere. The fierceness of frequent advertisement had leaded to an advertising war between P1 and Streamyx in 2009 (Risen. J, 2009). Moreover, High customer churn rate shows that any unsatisfaction in term of speed, stability and price will cause customer to switch to other service provider (Gupta. A, 2008).

It may conclude that the competitive rivalry in internet industry is highly intensive. 2. 3 Bargaining power of buyer With the increased choices of broadband service in Malaysia, the bargaining power of buyer is rising; this leads into customers seeking low prices but have better services. On the other hand, the switching cost from one to another Internet service provider is relatively low, customers can switch to other service provider easily, and this enhanced the bargaining power of buyer. 2. 4 Bargaining power of supplier P1 need to have sets of specialize hardware and software equipment to run their business.

From hardware (Base station, CPE, Antenna, Cooling system and etc) to software (Billing software, Network Monitoring, Test Software), there are enough number of suppliers weaken bargaining power. As a conclusion for the bargaining power of supplier, it is average as P1 have many other options (www. wimax-industry. com, 2009). 2. 5 Threat of substitution High substitution threats from non-traditional telecom industries’ product and services, for example: Cable television verses Satellite television, Internet telephony verses traditional voice calls (Gupta.

A, 2008). 3. 0 Segmentation Targeting and Positioning 3. 1 Target Market P1’s target markets are metropolitans who seek for convenience lifestyle. 3. 2 Positioning P1 had positioned WiMAX as a 4G technology that is superior to High Speed Packet Access (HSPA) and 3G technologies, which are the fastest, conveniences, stable wireless broadband network in Malaysia. Thus, P1 had done a “Potong (Cut) Now” campaign to encourage public to free themselves from hassles, frustration and any other unsatisfying broadband services. (www. p1. com. y, 2009) 4. 0 Marketing Mix 4. 1 Product The core product that P1 provided is internet connection service. There are two supporting products for people to connect to internet provided by P1 which are Wifi-enabled Desktop Modem and Portable Modem WIGGY; it can be diversify into many plans. 4. 1. 1 Wifi-enabled Desktop Modem Wifi-enabled Desktop Modem allows several users to connect to internet at the same time by WLAN technology. There are 5 standard plans which are categorized into two major plans: Home and Office. (www. p1. com. my, 2010)

For Home, it can be divided into 3 plans which are LITE, PLUS and PRO. The “LITE” plan connection speed is 400kbps and usage threshold are setting at 5GB. The “Plus” plan provided 1. 2 Mbps connection speed with 20GB usage threshold. The “PRO” plan provided 2. 4 Mbps connection speed and usage threshold are setting at 40 GB. (www. p1. com. my, 2010) Whereas for Office, are divided into Standard and Premium. The “Standard” plan provided 1. 2Mbps Internet connection speed and enjoying unlimited usage threshold. The “Premium” plan provide 2. Mbps internet connection speed and enjoying unlimited usage threshold by unlimited as well. (www. p1. com. my, 2010) 4. 1. 2 Portable Modem WIGGY Unlike Wifi-enabled Desktop Modem, there are only two major plans for Wiggy which is Wiggy 69 and WIGGY*. Wiggy 69 provide 800kps connection speed, allowing 5GB of usage threshold. Whereas for WIGGY*, provided speed up to 10mbps with usage threshold 10GB (www. p1. com. my, 2010). 4. 2 Price P1 had offered a “stimulus package” which is RM 49 per month to attract the new broadband users and students.

Another competitive package includes WIGGY with RM69 and RM149 per month. In the below, the table shows that the competitive prices between P1 and Streamyx. [pic] Table 1 – P1 W1max [pic] Table 2 – Streamyx Table 1 and table 2 shows the prices of P1 WiMAX and Streamyx according to the prices. From here, it shows that P1 keeping the price to be balance with others competitors, which Streamyx are provide “Streamyx 2. 0Mbps” package with price RM 188, and P1 are provide the plan “PRO 2. 4Mbps” with price RM 199. (www. p1. com. my, 2010 and www. Streamy. com, 2010).

The prices of all plan set by P1 almost the same with others competitors because P1 believes in an “honesty policy” in which the subscriber knows upfront which speed and price is worth for them. Thereby, P1 not only keeps the price balance but also increases market share and influences the local market. (www. p1. com. my, 2010) 4. 3 Place States and places had covered by P1 are Kuala Lumpur, Johor Bahru, Kuantan, Selangor, Perak, Pulau Pinang, and Perlis. P1 are planning to roll out its Wimax Services in the state which still haven’t covered by P1 that include Kuala Terengganu, Melaka, Sabah and Sarawak. www. p1. com. my, 2010) P1 recruit resellers to provide registration service in different state and areas that including Perak Ipoh, Pulau Pinang Butterworth, Johor Batu Pahat, Kuala Lumpur Putra Jaya and many other places which covered by P1 WiMAX coverage. (www. p1. com. my, 2010) On the other hand, P1 Green Packet’s headquarter located beside the Federal Highway in KL, it also houses their customer service center to provide reception service for customers come to registration with P1 Modem, require information, make payment, and others. (www. hot-screensaver. om) Lastly, internet also plays as an important part for P1 as play strategy, customers can make registration and bill payments are P1 official website. (www. p1. com. my, 2010) 4. 4 Promotion P1 has paid more attention to brand image promotion, and there are variety of promotions provided by P1 to attract more customers that involved P1 likes to attend different kinds of industrial exhibitions, seminars and summits, and make speeches to promote P1’s brand (wwwen. zte. com. cn, 2010). Besides that, P1 had also promoted their services through advertisement.

It features with three conventional forms of media which are television, newspaper, and radio. 4. 5 People Externally, P1 recruit resellers to promote and persuade customer to subscribe P1 Wimax internet connection services. Customer can find P1 WiMAX reseller easily as long as they are under P1 services coverage (www. p1. com. my, 2010). Internally, P1 hire formal receptionist to serve customers at their headquarter-PacketHub reception. Moreover, P1 also hires operators for customer care line to serve call in when customer encounter problems or need advance information.

The operation hours of P1 Customer Care Line starting from 8a. m to 11p. m, it also available on public holidays. (www. p1. com. my, 2010) 4. 6 Process P1 payment can make by online bill payment, auto debit, cheque payment and phone-in payment. Online bill payment allows customers to pay online by using Visa/MasterCard, Banks Savings and Current Account. Customer also can use Auto Debit/Auto pay system to do payment, it is an automatically system that will deduct customer bank savings or current account on a fixed schedule.

It is for sure that customers can use cheque payment method to pay for their bill; this is the very common way to make payment. Moreover, there is an option for customer to pay by phone-in payment, but only for MBF credit card holder and Visa/Master card holder (www. p1. com. my, 2010). 4. 7 Physical Evidence 4. 7. 1 Official Website P1’s official website is well design; it is eye catching, multifunctional and easy to use. It contains of information, announcement, online speed meter check, online payment, coverage check, online feedback and so on (www. p1. com. my, 2010). 4. 7. 2 Packaging

Packaging boxes of P1 W1WAX are made by high quality carton; this is to ensure that it can physically protect the product inside, preventing any damages from unexpected event. Moreover, the packaging itself are well design and nicely labeled, this is to attract and to relay information to customers. A well made design of packaging can be a tool to influence customer’s perception in term of quality of the product, indirectly persuade customer to choose P1 WiMAX internet connection service from other competitors. [pic] Picture 1 Packaging of P1 WiMAX Modem 5. 0 S. W. O. T of P1 wimax Strengths: |Weakness: | |First mover and market leader |Low Coverage | |Strong brand image |Erratic connection, weak connection signal | |Ease of use, affordable 4G technology | | |Partnering with government | | |Support from parent company | | |Opportunity: |Threats: | |Consumer preferences for internet access service |Threaten from Redtone | |Technological advancement |Preference for wired broadband and free wireless services | |States going wireless |Intense competition | 1. Strengths: 5. 1. First mover and Market leader P1 is Malaysia’s first and leading Wimax telecommunications company with the country’s widest Wimax network. The company gains the first mover advantages. It obtains control of resources that followers may not be able to match. P1 also formed a partnership with Sunway Group and completed deployment of the first phase of the [email protected] project, providing wireless broadband Internet access to more than 80 percent of home and business users and over 2 million visitors to the group’s flagship township, making Bandar Sunway the first integrated Wi-Fi/WiMAX wireless township in Malaysia. (www. p1. com. my, 2009) 2. Partnering with Government

Moreover, P1 was chosen by the local government, the Kuala Lumpur City Hall (DBKL), and regulator, the Malaysian Communications and Multimedia Commission (MCMC), to set up the Wi-Fi/WiMAX (Wi-Fi mesh) Kuala Lumpur Wireless Metropolitan Project ([email protected]), deploying over 1,500 hotspots and currently serving more than 130,000 users with free wireless broadband Internet access in Kuala Lumpur. (www. p1. com. my, 2009) It helps to create a strong brand image to P1 Wimax. P1 has established relationships with various local governments and communities to attract more new customers. 3. Ease of use, affordable 4G Technology Besides that, the ease-of-use offered by current modems, with true plug-and-play compatibility for typical users and greater flexibility for more advanced users (such as online gamers and heavy downloaders) to get the connection configuration freedom that they need truly satisfy the customer.

P1 Wimax requires no configuration, no software installation (for desktop modems), no additional lines—just plug-and-play operation (www. p1. com. my, 2010). The price of the plan and packages for customer are also affordable. 4. Support from parent company P1 is a subsidiary company of Green Packet, a technology company from Silicon Valley, and gets its technology and designs from Green Packet. With the help of Green Packet, it brings the future to present by offering one? stop cost effective data, voice, video and other value added services for all communication needs. The technology can transfer or sharing between each other. 1. Weakness: 5. 2. 1 Low Coverage

P1 W1MAX Wiggy signal coverage still not wide enough, there is only 35% population coverage by the end of 2009. 9As P1 Wimax service is still relatively new and in the process of being fully implemented, coverage is still not optimal especially in East Malaysia. However, P1 has a new marketing strategy out. Instead of planning where to “P1 W1MAX” enable, they are asking their users to vote for the next “P1 W1MAX” coverage areas. P1 hoping to reach 45% population coverage by the end of 2010, and 65% population coverage by the end of 2012 in Malaysia. (www. p1. com. my) 5. 2. 2 Erratic connection, weak connection signal The signal of the connection show a little erratic when the user wasn’t exactly in the coverage area.

Beside that, depending on the location of the P1 tower, the connection also varied from various parts of the house and performed best when the modem was placed close to the windows. On the other hand, the P1 modem may not work if you are using a work laptop where you do not have permission to install applications. This is because the P1 modem will actually install a little application in your laptop or computer to enable it to connect so you will have to ensure that your computer allows installation of applications. Based on these weaknesses, the P1 Company has created an opportunity to their competition to move in; they still need to do a lot of improvement to increase its performance and quality. 2. Opportunity: 5. 3. Consumer preferences for internet access service Information technology (IT) and advanced communications are playing an increasing role in national productivity growth, the creation of new network-based activities, and improving education and living standards. Frequency of Internet activity – “many times a week” Activity All Dial-up High-speed Email & instant messaging 71. 4 68. 5 79. 7 Search engines & purchase products 37. 8 29. 5 60. 8 Play games & gamble 21. 0 17. 7 30. 8 Share music file or photos 10. 1 6. 19. 5 Banking, trading stocks, or bill payment 9. 8 7. 4 16. 5 Download movies to view on PC 1. 0 0. 9 1. 3 Note. Cells are percent of respondents using the activity “many times a week. ”(Table taken from Telecommunications Research Group, University of Colorado) The table above shows Internet activity for the most extremes responses. The boom of e-business and m-commerce, doing things such as paying bills online and being on the go creates an opportunity for P1 as the trend is to utilize and makes the best of all the time you have.

This is due to the increasing preference for full mobility, doing things on the go and online connectivity. [pic] The table above shows that the internet users and broadband internet users had been increase. By the end of June 2008, there were 1. 718mn broadband subscribers in the market, and our estimate of seeing just over 2mn by the end of the year is expected to be achieved, led by demand for wireless broadband. (Malaysia Telecommunications Report, 2009) This trend is expected to continue, particularly given that the country reported the deployment of its first WiMAX services in the third quarter of this year. We are forecasting around 7mn broadband subscribers by 2013, representative of a penetration rate of 24%.

The increase of broadband users is also a sign that the market would be ready for P1 Wimax if the service and promotion are implemented successfully. 2. States going wireless [email protected], is a state government initiative engaging the WiMAX-based P1 wireless Internet service. P1’s part of the project is actually named [email protected], a subset of the larger initiative, to deliver broadband Internet connectivity to areas with high numbers of tourists, as well as densely-populated locations, making Penang one of the first cities in the world offering full WiMAX connectivity. (www. p1. com. my, 2009) This provides an opportunities as P1 may take advantages of this need and be the most widely used, known or eve sole provider in the state.

This will put them ahead of their competition as well as help to establish credibility and reputation. 3. Technological advancement MIMOS, the premier applied research centre in frontier technologies, today announced that its WiWi Technology Platform – the world’s first hybrid WiFi and WiMAX solution which operates on 2. 3 GHz frequency designed as an alternative for last mile broadband connectivity to accelerate Malaysia’s broadband ecosystem – is ready for nationwide commercialisation. (www. mimos. my, 2009) The new MIMOS WiWi allows for better penetration into the broadband market such as being able to reach rural areas where pulling cables are more costly, time consuming and inefficient option.

If P1 is able to build a strong brand image, excellent reputation and services, it will be able to capture the lion’s share of the market. 3. Threats: 5. 4. 1 Threaten from Redtone Redtone, using base stations and CPE equipment from Motorola, has launched the first commercial WiMAX service in East Malaysia. (www. telecoms. com, 2010)The first phase of the WiMAX network covers the Kota Kinabalu business district. With Redtone heavily investing and focusing in East Malaysia, Redtone has managed to establish themselves and build credibility there. This creates an obstacle for P1 whose objectives is to be the leader in the wireless broadband industry.

P1 will find it much harder to penetrate that market without heavy investment in promotions and improving their services or Redtone’s service deteriorates. 2. Preference for wired broadband and free wireless services As wireless broadband is still not very advanced, it tends to be either more unstable or does not have extensive coverage. As such, people may not want to pay for wireless broadband when options such as wired internet in the office or home are available. Free Wi-Fi services are also available to cater for the increasing preference for full mobility in many places such as F&B outlets such as Starbucks, McDonalds, Secret Recipe, Old Town cafes, Papa Rich and so on. 3.

Intense competition P1 Wimax operates in the highly competitive and rapidly evolving technology industry. Rapid changes in the technology have resulted in the frequent introduction of new products with competitive prices, features, and performance characteristics. Some of the competitors of the company include fixed line (TMNet Streamyx), and cellular providers through their HSDPA/HSUPA (Celcom, Digi, Maxis). With telecoms lying new technologies from time to time (towards LTE) and TMNet starting High-speed (using fiber) broadband next year in metro areas of Klang Valley. Moreover, P1 only offers 2 portable Wimax packages, the Wiggy and the Wiggy 69.

Each package is placed on two extreme ends, one with a very low speed and the other with a significantly higher but also higher price tag. (www. p1. com. my, 2009) There is currently no package catering to the in between market—those who do not mind paying a bit more and getting a slightly higher speed than that offered by Wiggy69. Aside from that, the competitor offers a much wider range of packages and some even cater to the “in between” market. This creates a threat to the P1 also. 6. Marketing Objectives and Strategies: 6. 1 Marketing Objectives a) To increase to 20% P1 WiMAX subscriber in one year. b) To increase 30% of P1 WiMAX awareness among the targeted audience in one year. 7. Marketing Strategies: Ansoft Matrix Market Penetration: price, promotion |Product Development: product | |- special price packages |-R&D in service stability | |- inducing trial use |-packaging of the product | |Market Development-promotion, place |Diversification-distribution: product | |- Increase service availability in F&B outlet |-come out with mobile telecommunication service. |- Increase coverage | | |- Mailing campaign | | 7. 1 Market Penetration: Price • Special price packages-student packages Communicating the benefits to the end-consumer of a product often needs a “sweetener” to entice the consumer to change their provider or sign up for the first time with a new provider. Adding value and an incentive to purchase to the end-consumer is the main point. The student market for broadband is significant and forms the key demographic of the target market. According to the research that done by P1, the customer “Top Five Wish List” are: 1. Coverage 2. Embedded devices with attractive bundling and add-on options 3.

Higher data cap 4. More affordable portable offerings 5. Direct subscription sign-up online (already addressed by P1 Direct) With student sometimes paying up RM 26. 000 per year on higher tertiary education fees, a mobile internet service that is fast, reliable, portable and most of all, affordable is most attractive. As an incentive for students to sign up to P1 Wimax, an exclusive package deal for “student only” would include 12-month short-term contract, an improved download speed of up to 10mps, the last month of the 12 month contract would be free-of-charge, premium on offers which include pendrives, mouse pad all bearing the P1 Wimax logo and so on.

The design of shorter term contract would be more appealing to students as many students live in a dynamic environment and value their freedom of choice. By making the 12-month contract more attractive the student’s interest will be garnered. Besides that, P1 also can conduct an on campus advertising. On campus advertising is a marketing and media services company specializing in targeting college students on campuses. The concept of advertise in campus is less expensive and can attract more student in the package which are only deal with student. Additionally, the campus media such like campus radio station and website can get the ads get played in order to increase its brand awareness. • Inducing trial use The consumers could be influential in inducing trial use of a new product or service.

Companies now allow clients and potential customers to try products and services on a trial basis before purchasing or signing up. By offering a trial offers, it acts as an incentive for prospective consumers, potentially influencing their decision to sign a contract with the company and encourage users of another brand to switch. This method is used in order to demonstrate and promote the stability and speed of P1Wimax. Once the users get a feel of the Wimax technology P1 provides, they will be more easily convinced to make a purchase if they are able to experience a product or service first hand as they will make the judgement on their own. 7. 2 Market Development: promotion, place • Increase Services availability in F&B outlets

F&B outlets such as Starbucks and Old Town are selected as it is not only a hang out place but a place where those who wish to surf the net can do so in comfort as food and beverages are served there. It is more convenient than using the cyber cafe and it is also provides a change of atmosphere from surfing the net at home the office or in an educational institution. The F&B franchises are chosen as many people patronize the outlets not only for the food and drinks served but also for the ambience, WiFi services and price. Furthermore, the distribution of these outlets is wide and easily to find. Thus the name and device will always be easily seen, building awareness, reminding the public and creating interest in the Wiggy portable USB modem service. • Increase Coverage

In order to increase distribution and availability, P1 could establish relationships with various state governments and communities. Because of the successful partnering with Penang government, the company now can engage the WIMAX-based P1 wireless internet service with other state government. This partnership project not only can increase the brand awareness, but also boost economic capabilities and social education opportunities so that the state can leapfrog the development and growth of Information and Communication Technology (ICT) as a whole. • Mailing Campaign It’s important to promote the brand awareness and reputation. This is especially true when economic times are challenging, you’ve got news to announce, or you’re simply hungry for growth.

Many forms of promotion are available to the modern designer – with banner ads and Google AdWords among the most popular. In this digital age, it’s easy for web and graphic designers to overlook one of the most effective and fun forms of promotion: the mail campaign. Direct marketing provides with a way to conduct a test of this market relatively quickly, at a reasonable cost, and with convincing certitude. Direct mail can happen fast. With a modest campaign to a known target audience, P1 can acquire a mailing list; develop mailing materials (including direct-mail letter, flier, reply card and so on), launch a mailing and start to receive results in just a few months.

This is faster than the typical advertising campaign–and a lot faster than waiting for the phone to ring. Additionally, P1 can test different appeals, called “offers” in the trade, to reveal the most potent message through direct mail. By making a different offer to randomly different portions of mailing list, P1 can see which offer pulls best. Go with the best puller until find a better draw. As P1 try different offers and different letters, they will find one does better than another. Use the better one, and then try to beat that in the next mailing. Eventually, P1 could get better and better response rates. The mailing campaigns are potent to generate immediate response for advertisers and are also easy to track performance of campaigns.

Moreover, P1 can take entrepreneurial achievements far beyond their competitors if they use this campaign correctly. 7. 3 Product Development: product • R&D in service stability Stability is one of the stimuli that create customer retention in telecommunication industry, and it can be one of the most attractive unique selling point attracts more potential customer to subscribe P1 WiMAX internet services. So, R&D on current P1 WiMAX and come out with a more stable service rather than just emphasizing on speed improvement can draw numerous of potential customer from other competitors. More stability, in customer’s mind, means more reliability. • Packaging of the product

The modem of P1 is a little big compare to other competitors, it maybe not convenience for whom which are bring along and travel around. In order to attract more customers, the design and the package of the modem should be more stylish and portable. For example, with the environment now furnished with modern, a broadband also can be designed as a necklace which is easy to take and keep. Moreover, it also can be a decoration for girls. 7. 4 Diversification-distribution: product • Come out with mobile telecommunication service P1 can diversify their service into mobile telecommunication service. This is a new, challenging and profitability market for P1 to diversify into it.

Although P1 have to bear a high risk for press ahead towards mobile telecommunication service industry since there are already three major players which is Celcom, Maxis and Digi had dominated most of the market shares. However, as every person has to had one mobile phone in this 21th century, mobile telecommunication service is an enormous, long lasting and highly profitability industry to target. In order to penetrate this new market segment, P1 could establish a partnership with Sony Ericsson. Sony Ericsson Mobile Communications is chosen because it’s a global provider of mobile multimedia devices. It is famous and well known. A good relationship with right company can become an essential pull factor for P1 development. 8. 0 Target market and Positioning 8. 1 Target market

These new implementation plans targets people who live in urban areas. Whereas Mobile telecommunication service are targeting students who are currently using P1 services 8. 2 Positioning As to coordinate with the new implementation plans P1 should position themselves as an affordable, reliable, and fastest wireless broadband network. For mobile telecommunication service, P1 should position themselves as affordable, reliable and emphasis on joyfulness to communicate with friends and families. ———————– Threat of New Entry: 1. Require enormous capital to enter 2. Telecom License 3. High advertising cost 4. ([email protected]·?? A – > ? L M T V W l 2

K L cIµ­¦Y¦? ¦Y¦‘¦S‚~‚u‚Sn‚~‚e‚n¦‘]‘V‚ hCk9ho“hCk9ho|w5? hCk9hy^A0J hCk9hy^AhCk9hyWe0Jh? sjh? sU[pic] hCk9hyWe hCk9huo% hCk9h? a hCk9h? hCk9hshCk9hy^A5? 0hCk9hOyk5? B*[pic]CJOJQJaJmHphsH0Skill human resources capital 5. High exit barrier Competitive rivalry: 1. More than 10 ISP 2. New carriers lead to price war 3. Advertising war 4. High customer churn rate Supplier Power: 1. Moderate number of suppliers 2. Able to change Buyer Power: 1. Many Suppliers 2. Seeking for lowest prices but have better services 3. Low switching cost Threat of substitution: 1. High substitution threats from non-traditional telecom industries’ product and services.

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