CHAPTER 2 CASE: Say 'Charge It' with your cell phone

OK...for this week we all learned about technology and our lecture give this assignment and the assignment is about smartphone. After read the article, we have to answer all the questions and u can see i had wrote down the questions and the answers below..actually it is not too difficult but we need to think creatively..:)

 QUESTIONS:

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?

2. Using Porter's Five Forces describe the barriers to entry for this new technology?

3. Which of Porter's three generic strategies is the new technology following?

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

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

ANSWERS:

1. Yes, i agree this technology as a potential threat to traditional telephone companies. Therefore, the counter strategies could traditional telephone companies adopt to prepare for this technology by using focused strategy. focused strategy normally target to a niche market. they only focus one group of user in their product. For example, M mobile in Malaysia just focus to calling and messaging. It not have many application in the systems compared to others mobile smartphones companies.  M mobile should maintain it strategies to compete with others mobile company because not all people like to using smartphones and perhaps they do not know how  to use the application in the smartphones. (like me...^^)so..whatever..:P

2. By using Porter's Five Force, the one of the barriers to entry for this new technology is buyer power. Nowadays, buyers has many choices to choose the best supplier to their product. They want their customer still and loyal use their product without change to the other product. For example, in blackberry smartphone using an application of IOS and Samsung were using an application of android. Therefore, the existence of the competitors cause barriers to them to improve and move aggressively to produce quality product. Then, customers should choose the best and quality product.
Second is supplier power. Supplier need to diversify their product to maintain and compete with other supplier.They want their customers be a loyal user with their product. We can see at Samsung company, they using an android application in their smartphones.
Third, the barrier in threat of substitute products and services 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 taste.
Fourth is threat of new entrants. Barriers for new entrants is how they want to introduce and attract their product to people. For instance, Motorola company launched its smartphone too. So, they want their customer know about the existence of the product. They need catch mind of people for realize that Motorola also able to produce smartphones.
Lastly, rivalry among existence competitors. When there are many of competitors in market that want to compete in their technology and product, they do not realize that they need to open their mind and think something new and more advance in the technology. Not only focus on gadget but another factors.      

3. The Porter's three generic strategies is the new technology following is differentiation. Differentiation will create competitive advantage by distinguish their products on one or more features to their customers. For example, an Apple products, they use Mac application, the identity logo is an apple shape, the colors colorful, the shapes interesting. It can be distinguish clearly with the others product like Nokia. Samsung, Blackberry and CSL.


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

5. The regulatory issues might occur due to this type of technology is fraud. the fraud can happen either to the customer side or supplier side. customer can be cheat by using other person credit card to make the payment. For example, children can use their parents credit card. For supplier side, they will make double charges without customer knowledge.

that's all. I finished my work!! bubye.s.u.l~ ^_^