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Dear Tutor,
in this question we are required to analyse the mobile operator industry. The applied model is Porter’s 5 forces.
I have a question regarding the substitutes. In the model answer it is stated: At present, it is difficult to envisage any threat of substitute products to the mobile network.
Could we state that the 4 licenced operators can provide direct substitutes to the customers as they offer the same product. Would this sentence gain any marks?
Regards,
No, those are competitors. A substitute would be more like Skype or WhatsAPP – though those examples are not great because you need internet access. A substitute gives the customer the same end result using a different approach.
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