Study of change of power balance in mobile telecom value chain

Abstract

The 3rd Generation mobile telecommunications industry, which changes rapidly, is one of the best examples for the study of the balance of power in the value chain. Three dynamic factors are keys that can change the balance of power in the mobile operator's industry: sociopolitical factors, technological factors, and alliance factors. These factors collectively increase the bargaining power that mobile operators have over vendors. In addition they impact how vendors compete with each other. This thesis advances the discussion of power with an analysis of the Vodafone Group. It also explores the idea of how network suppliers respond to the increase in the bargaining power of buyers, through a discussion of Nokia. The focus of this thesis is not whether, but how the mobile telecommunications value chain, and specifically the bargaining power of buyers, has evolved thus far and will continue to evolve over the next few years.