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P a g e
+ The distributed system has many competing firms with no firm that can
dominate the business
+ Exit barriers
The Vietnamese mobile telecommunications service provider market currently
has many providers, but the dominant power in the market is still in the hands of 3
telecom service providers, namely VinaPhone, Mobifone and Viettel. Demand for
using services in Vietnam increases by 5-10% per year, revenue and profit of
providers also increase with the same number. Although the barriers to entry into
the industry, the barriers to entry are high and the pressure from customers is not
significant, there are many businesses preparing to enter the market. With this
trend, the competitiveness within the industry will increase and at that time
consumers will be more and more respected.
3.4. Threat of Entry:
Nowadays, with the financial advancement and the blast of data innovation,
human life is getting way better and portable phones are slowly getting to be an
basic item in life. According to M-Porter, potential business competitors are not
present in the industry, affecting the future industry
More or less potential competitors, pressure on them to strong or weak industry
depends on the following factors
+) Industry attractiveness: Factors can be through the rate of return, the number of
customers, the number of businesses in the industry
+) Barriers to entry into the industry: factors that make it difficult to enter the
industry
Engineering
Capital
Commercial factors: Distribution system, brand, customer system d Specific
resources: Input materials (Controlled), Patents, Human resources, household
For domestic telecommunications, big giant Viettel, Mobi, Vina has joined
Vietnammobile EVN. This is a potential rival giant behind the business sponsoring
business with a large capital investment from the country. This is a real threat to
water telecommunications businesses, making businesses wary.
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