Exercise Chapter Two Case : Say "Charge It" with Your Cell Phone

Questions & Answers

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?

Answer : Yes, traditional telephone companies have to upgrade their technology for in tandem with other companies. Example, traditional telephone companies upgrade their microchips and be creative in their telephone design. Also, they have to make traditional telephone more appealing to people and possibly cheaper packages then what they already have.

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

Answer : 

Entry Barrier -  traditional telephone companies must offer customer an array of services that this new technology will provide.

Supplier Power - traditional telephone companies have to find the suitable supplier to determine the right price. Also, they have to find the suitable supplier for the right technology.

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

Answer : 

Focused Strategy - target a specific market.

Targeting the growing market of cell phone users and purchasing products and services from the cell phone.

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

Answer : Value chain increase the infrastructure of phone companies and improve technology development by using the payment method can receive or store information from the consumers purchases and send that to the phone company. More people will engage in this type of payment method.

  

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

Answer : People will be skeptical with putting personal information out there not knowing what kind of security protection the company has. Anyone will find a way to hack into cell phones.