Bargaining power of customers.
Given the wide offer and the ease of accessing portability and changing from one company to another while maintaining the same number, we consider that the power of customers is high since the degree of loyalty to a company is low.
marketing-analysis-wom-chileOUR VALUES
- Passion: We enjoy giving everything in everything we do convinced that we will achieve super results. Courage: We challenge our limits and dare the impossible. Innovation: We seek to make people speak through new ideas that make a difference. Honesty: We are sincere and consistent, we always respect the truth.
OUR PURPOSE
In everything we do, we challenge ourselves to inspire and enrich people's lives.
EXTERNAL ANALYSIS
Political - Legal
- Chile has a republican, democratic and representative political system. The State is divided into three independent powers: Executive, Legislative and Judicial. Law 19,496 on the protection of consumer rights. Law 19,628 on the protection of personal data.
Economic
- The country is going through an economic crisis projecting growth of 2.5% and an increase in the interest rate. The government highlights that the results are due to transitory effects of monetary and fiscal policies, and the country also has a healthy banking system.
Sociocultural
- Chile is the country with the greatest inequality in income distribution, along with Mexico. The level of income and debt at the same time influences the purchasing power of Chileans. There are also inequalities in the educational system, although Chileans have the most years of education in Latin America.
Technological
- Chile remains at the forefront of global technological innovations. Chileans also respond very well to technology. In addition to 138% cell phone penetration.
INDUSTRY ANALYSIS - PORTER
Bargaining power of customers
Given the wide offer and the ease of accessing portability and changing from one company to another while maintaining the same number, we consider that the power of customers is high since the degree of loyalty to a company is low.
Bargaining power of suppliers
Currently there are 6 telecommunications companies that could provide cellular network service: Virgin Mobile, VTR, Telsur, Claro, Entel and Movistar; where the last three are the most relevant actors since together they have close to 98% of the market. Due to its size we might think that its negotiating power is high.
Threat of New Competitors
- Scale economics. High barrier given the high costs of technology. Product differentiation. The service is not highly differentiated and there are few actors. This barrier is low. Capital requirement. High barrier. Access to distribution channels. Given the small number of actors that own the network, this barrier is considered high.
PORTER
Threat of substitute products
The threat of substitute products is low since there are no technologies to replace cell phones. The growth in smartphone technology has allowed the Internet to be blocked as the creator of new replacement paths.
Rivalry between competitors
For reasons stated above, we consider that rivalry between competitors is high. Although there are many possibilities of adding value and differentiation to customers in a growing market, the interest in achieving higher levels of market share leads to this force having high characteristics.
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