I have chosen the wireless industry because that is the industry I work in and enjoy. The wireless industry is a very competitive market; you see many providers competing for the top spot. The success of the wireless industry thriving depends on its consumers. There will always be a need for a cell phone or tablet. Michael porter says “an industry’s overall profitability depends on five basic competitive forces, the relative weights of which vary by industry” (Lester & Parnell, 2006, p. 5). The rivalry within the wireless industry is high between competitors such as AT&T, Verizon, Sprint, and T-Mobile. You will see one company come out with a new plan or service and you will typically see the other providers following suit. One will cut costs or offer something the other one doesn’t. An example would be recently AT&T launched a new plan called the “Mobile Share Advantage Plan” where you will not have any data overages. Verizon has not starting offering this …show more content…
When Wal-Mart starting offering their own prepaid service called straight talk, it hurt the prepaid market due to their low price. There are also threats that come into the market that offer similar needs, but they cannot offer what the larger providers can. You will see small companies create their own wireless company where they market how low their prices are, but they do not tell people their network is not good. You will see consumers switch from the large providers to save money, but many end up coming back due to the network not being great. The only saying is “you get what you pay for.” To gain more profits for your company, you must have bargaining power. You will see devices launch that is an AT&T or Verizon exclusive; such as the new Samsung S7 active. This popular device will help AT&T be more profitable due some consumers want that device bad enough to switch wireless