Asgment 3 : Say " Charge It" with Your Cell Phone

Nowadays, there are so many types of cell phone. For an example, BlackBerry, Samsung, iPhone, etc. This types of phone had so many application and people also can online through the internet using the cell phone. Usually, people will using their laptop or computer to open the internet. But now, because of the application on the cell phone, people can easily open the internet. The uses of the cell phone is quite similar with the laptop or computer.

several types of smartphone

Based on the topic of : Say "Charge It" with Your Cell Phone. said , customer could purchase a can of soda by dialing a telephone number on the dispensing machine and have the charge for the soda show up on the customer's cell phone bill. In this topic, they also had mention that "If you're not going to carry cash around,what are you going to carry? " If they ask that question to me, i will answer "My mobile phone".  I know that most of the readers will answer same like mine. :D

Okay, let's look at the other questions :

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?

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

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

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

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

To answer this questions, we must look back at the Micheal Porter's Forces Model. Because this topic related with that competitive advantage.

1. In my opinion, this technology is categories as a potential threat yo traditional telephone companies. The traditional telephone companies can use the porter's genesis strategies of differentiation This strategy can create some competitive advantage by distinguishing their products on one or more features important to their customers. It's a unique features or benefits may justify price differences and stimulate demand.  The traditional telephone company can create product that different from others telephone company to attract more customers. Because traditional telephone does have many types of application. So, the company can create something enovatif and creative application for the traditional telephone.I'm sure that this company can attract more people to buy the product even there are so many types of smart phone in the market.

2. In the Porter's Five Forces Model, there are several types of rivalry among competitors. But only one types of Porter's Forces that give a barriers to entry for this new technology. The supplier power is refer o your supplier's ability to dictate the price of the raw material or other inputs that supplies you.The model says the more power your supplier has to dictate the price, the less competitive you are in that business environment. You need to reflect the high price in your finished goods and the higher your price is, the less customers you will attract in the market. Supplier power increases when there are only a few suppliers to choose from in the market and when the raw material they supply cannot be substituted. With limited number of suppliers, you have less ability to switch suppliers and therefore, less ability to dictate your terms. The same can be said of your raw materials if they cannot be substituted with alternatives.

Supplier power is the best practices of IT to create competitive advantage because it can create business to business communicate. Business to business is the business of supplier meet to business of competitors. It can create reverse auction where it's offering the lower auction or prices.

3. In this question, it's similar with the question number one. In the Porter's three Generis Strategies, differentiation is the strategy that follow the new technology based on the case studies. A differentiation strategy calls for the development of a product or service that offer unique  attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition.  The value added by the uniqueness of the product may allow the firm to charge a premium price for it. The firm hopes that the higher price will more than cover the extra costs incurred in offering the unique product. Because of the product's unique attributes, if supplier increase their prices the firm may be able to pass along the cost to its customer who cannot find subtitue product easily.

 4. How the business process go? Supply chain is the process of design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. Value chain of the business of using cell phones as a payment is an easy method to be use. Because customer does need to bring their money to purchase a product. Using the cell phones to transfer the payment and it will connect through internet and bank. This method can attract more customer to using the cell phone as a daily using tools.

5. What types of regulatory issue that might be occur is people nowadays does know what kind of security protection the company has. To buy a goods through online , they need to fill the form of the account number. Here, there lies problem will requires. Hence, people will fine a way to hack into cell phone. Because it's possible for them to hack the system through the cell phone. There are many cases that can be found where there is many people that know and had learn how to hack the system of cell phone or computers.