Need a detailed self explanatory description on the opportunity of starting a new multinational corporation (big or small, and which does not yet exist), in a telecom industry in Switzerland that concentrates to rent mobile service of their own to tour around the country, with a partnership of different countries.

Also describe in detail what cultural, social, political, economics, legal and technological factors among other global issues relating to Switzerland and/ or to the telecom industry could impact such established company in Switzerland.

 

Answers:

Introduction:

For the following investigation, a strategic plan will be developed for the creation of a new multinational telecommunications company Bern, based in Switzerland, in order to maintain and recover the market share in mobile telephony and generate profitability for the next three years (2021 - 2024).

Goals:

-Carry out an analysis of the national telecommunications sector to understand the business context and the impact they can generate macroenvironment factors.

-Identify the key factors within the local strategy and its alignment with the corporate social responsibility, to determine existing gaps.

-Analyze the value proposition of the telecommunications industry and the possible national expansion. As a result, they are established updates in mobile phone service.

-Apply analysis methodologies for regulated markets, in order to differentiate ourselves from competitors with a new telephone brand.

Relevance, context and limitations:

The highly competitive environment in the mobile phone market comes from the emergence of two new operators as of 2018. Since then, a migration of clients began between incumbent and incoming operators, significantly modifying the distribution of market shares and causing the supply to vary, basically in the

price reduction and in the increase of the services offered in the market. In parallel, given the nature of the mobile service, operators also compete with mobile phone manufacturers. terminals.

It is also relevant to indicate that in Switzerland, despite being in an environment of high competition, there is a regulatory body, which looks after the interests of the different stakeholders: the State, users and telecommunications companies. In this area of changes, it is essential to analyze current strategies and redefine them in order to maintain market share and generate profitability.

Step-by-step explanation

Explanation:

Market research design:

Objectives of market research:

Determine the potential demand in the rural segment.

Define the customer profile to consider.

Hypothesis:

It is presumed to determine a demand for 700,000 potential lines in order to support the deployment profitability.

Data collection:

Research parameters:

• Total population and proportion to be benefited.
• Type and number of beneficiaries.
• Number of institutions (schools, health centers, etc.).
• Total lines.
• Consumption per service.
• Rural population growth rate.

Consumption per user:

-Mobile voice: A simultaneity factor of 50% will be used and assuming a traffic per user of 11mE (milliEarlangs), we reached the figure of 14 mE per user.

-Mobile data: We will use an average speed of 300kbps and a usage time of at least 5 minutes, with a simultaneity factor of 15%. This would give us 5.32 Mbps.

Market strategy:

The current strategy of the company is based on the price war due to the high competitiveness in the market, currently, the company is in the "Maturity Stage" and "Stagnation". That is, the mobile phone product still allows it to be current in the market, but the income is less and less and it no longer has growth. Therefore, the company will continue to focus on offering its services in the urban sector, because it is still its main source of income. However, it is proposed to extend it to rural areas where there are potential unattended users who they represent the opportunity of a new market.

Political factors:

In recent years, the country has experienced political instability basically influenced by corruption issues within the government. While these events did not affect significantly to the economy there is some uncertainty about its impact on growth from the country.

Economic factors:

Regarding the inflation indicator, it is projected to reach up to 2% by 2021, due to the consequences of the COVID-19 pandemic, without consider some risk factors that may affect our strategic partners (countries

that purchase our products) such as protectionist measures, commercial retaliation and the volatility of financial markets itself.

Socio-cultural factors:

In Switzerland, 93% of registered households access some information and communication technology (hereinafter referred to with the acronym ICT), that is, they have Internet, cell phone, cable TV or landline. That shows that in the last ten years the average annual growth rate of households that accessed ICT was 40%. On the other hand, so that urban and rural areas can have greater access to ICT, specifically to mobile telephony, it is necessary for operators to deploy radio antennas in various geographical points, but «for some time now a concern has arisen growing in much of the population about the risks to human health that may have mobile phone antennas. A controversial and complex issue »(García 2017); without

However, "taking into account the very low levels of exposure and the results of esearch collected thus far, there is no convincing scientific evidence of that the weak radio frequency signals coming from the antennas and the networks wireless networks have adverse effects on health "(World Health Organization, 2006).

Technological factors:

The reach in the mobile service by households is details the coverage level by population area. For example: In the capital Bern it owns 97.2%, followed of the rest urban (92.5%) and the rural area (79.6%). This concentration of coverage is very focused on urban areas, where operators have been competing both at the price level as an assurance of Internet browsing speed (mobile data service) (Garcia, 2017).

Currently, operators offer services with 4.5G technology for data service and VoLTE for voice service; however, tests for evolution are already underway which will be 5G for data and VoWiFi for voice.

Legal factors:

The telecommunications services developed by the operators are carried out within the framework concession contracts, the Telecommunications Law and its general regulations, issued by the MTC. The supervision activity is carried out by the MTC (Ministry of Transport and Communications) to ensure the compliance with current regulations and concession contracts. The audits are related to the secrecy of telecommunications, user information, customer service claims, plans and rates, quality of service, stolen terminals, among others. All telecommunications operators are required to carry out the renewal of its concession contracts with the Swiss State to provide the services of fixed and mobile telephony

Other global issues related to the telecommunications industry in Switzerland:

-In the case of the telecommunications sector, its operations must comply with various requirements

associated to the signal spectrum, its infrastructure, its waste and residues. All telecommunications companies must comply with environmental regulations on the treatment of hazardous and non-hazardous waste product of the daily operation.

-The mobile phone market is part of the telecommunications sector and is regulated by the Swiss State through the Ministry of Transport and Communications that dictates the laws and regulations to be followed. In addition, it is in charge of regulating and supervising the development of the sector, seeking to encourage

competition between operators.