Competition in the European mobile phone industry: Introduction of UMTS in Spain
Date Submitted: 09/10/2006 05:42:58
Unique characteristics of the phone operator compared to traditional manufacturing sectors
Many of the fundamental characteristics differ between manufacturing and services. These include the following:
* Ability to develop and protect proprietary technologies: Imitation is simpler for a phone operator; manufacturing process/system patents are more difficult to obtain and protect.
* Incremental nature of innovation versus discrete technology transition: Because of competitive pressures and the relatively low cost of modifying service provision (compared to changes to
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foray into 3G services, Xfera has to invest in developing in-house capabilities or partner with content providers to develop innovative products and services (applications) that will stimulate churn.
* Their basic strategy should be geared towards forming alliances with market leaders and technology providers to strengthen their position as newcomer in the Spanish market.
* Building a recognized brand name with the aim to sell it in the near future could also represent an option for them.
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