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,
Ask the Tutor ACCA SBL
June 2015 Q1a ii
8y ago#1No, 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.
Thank you very much for the explanation.
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