Chapter 2 Case : Say " Charge It " with Your Cell Phone .

Questions

 

1) Do you view this technology as a potential threat to traditional telephone companies ? If so, what counter strategy could traditional telephone companies adopt to prepare for this technology ? 

- Yes, I agree with this technology  has a potential threat to traditional telephone companies. The counter strategy could traditional telephone companies adopt to prepare for this technology is

 "Differentation " It is because we can improve the traditional phone to be IT phone that can connect with internet .Within this we can high the price of phone but not over high cost compare samsung, blackberry and so on . Samsung we have many function like android, pictures, whatsapp, and so on and balckberry have few differentation compare to samsung.

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

- Barriers to entry is the threat of substittute products or services. Customer might think that these new modern telephone company may have more expertise in thus new technolog. So,easily they can change to new cell phone and the old fashion technology can loss customer.

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

- The porter's three generic strategies is the new technology is differentation. This strategy may allow company to put a higher price because of the special features they have in their products. Based on this case , as the traditional already have name, so, they just need to step up their game by putting this technology into their coming products.

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

- For example, a girl buy a new bag from BONIA using direct using direct debit transaction. So, the bank will directly deduct the money from our account and pay certain the amount of money. The bank may chargers a few ringgit for the service provided to the customer. From that, they can gain some profit through online payment. Once they get the money, they will deliver the product to the customer.

5) What type of regulatory issue might occur due to this type of technology?.

- Fraud can happen form internet payment. Fraud is by the customer and by the company itself. Customer may use other account to do payment or use different identify. So if no payment is made, so the company can't trace them .