2. 2
Porter’s five forces analysis for
British Telecom(BT)
Bargaining
Power of
Customers
Bargaining
Power of
Suppliers
Threat of New
Entrants
Threat of
Substitute
Products and
Services
Industry
Rivalry
3. • High customer royalty
• High buyer power
• Financial situation of European market
• Asia, Latin America and Middle East
• Several telecommunications options,
particularly within Broadband networks
• Ability to substitute with Internet TV, mobile
phones instead of fixed-line telephones, etc
3
Bargaining Power of Customers
4. • Technology group (e.g. Tikit)
• Channel provider (e.g. Discovery Networks
UK, Sky Sports)
• Physical components and products’
providers from the Far East
4
Bargaining Power of Suppliers
5. 5
Threat of New Entrants
Government licenses and Ofcom
regulations
Access to BT’s infrastructure
Expensive to enter the
telecommunications industry
6. 6
Threat of Substitute Products and
Services
Relies heavily on Broadband
Fixed Line Phones to Mobile
VoWifi and VoLTE
8. 8
Industry Rivalry
36%
12%
52%
Market penetration(Landline/Mobile
Phones)
BT Virgin Others
Is it easy for other to enter
into telecom business .. ?
Customer choice .. ? BT/Virgin/Other
BT Virgin Sky
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