Smartone Swot Essay Example

name (S6), well-recognised for its high-grade customer support and net connectivity reputation. Nonetheless, it suffers from internal weaknesses such as limited geographic diversity (W1). The company's operations are majorly concentrated in Hong Kong and Macau, and this exposes it to financial risks related to these areas' economic performance. The income could face adverse impact due to any economic downturn in these regions. Moreover, the company lacks sufficient diversification when compared with other key players in the Hong Kong market. To illustrate, Hutchison Whampoa Limited, a competitor, is extending its reach in nations like Australia, Argentina, and China.

Dependence on primary vendor (W2) – SmarTone's operations heavily rely on Ericsson for the supply of 2G/3G core and radio networks in Hong Kong. Ericsson is the exclusive system support provider. Any instability in its supply could negatively impact SmarTone's business operations. At its most extreme, a severance of ties with Ericsson could trigger ongoing operational challenges for SmarTone.

SmarTone tends to levy a rather substantial monthly fee (W3) for their mobile services because of the robust and consistent network connection they provide.

Old-fashioned landline telephone services (W4) are seeing a drop in demand due to shifts in lifestyle trends, with cell phone services becoming more dominant. The prevailing trend indicates a growing inclination towards Mobile Broadband services (O1), as customers shift from dial-up connections to broadband. Morgan Stanley's market research forecasts that the number of broadband subscribers in Hong Kong will reach 16 million by 2016, indicating a 23% rise from 13 million in 2011. This notable increase in the number of subscribers significantly aids in boosting revenue within the mobile sector.

The

Telecommunications Services sector (O2) has shown considerable growth, as per the figures from a Morgan Stanley report. The overall income from operations surged impressively from 57 billion in 2009 to a projected 69 billion in 2012. Revenue based on telecommunications continues to show potential and appeal to operators.

Collaborative Partnerships (O3) - The telecommunication sector exhibits a balanced distribution of market share among the players. The offered services show minimal variation, resulting in an absence of any principal operator. This industry demands significant capital, with a hefty portion invested in research and development to invent new technologies that cater to customer needs. Strategic partnerships can open doors to market growth by enabling operators to pool resources and form unique capabilities. In September 2010, SmarTone teamed up with Huawei to introduce the Industrial Design Evolution Operation System (IDEOS), an Android 2.2 based smartphone in Hong Kong. This venture successfully enhanced network speed and strengthened market position. Multipurpose Mobile Functions (O4) – With the progression of technology, mobile phones have evolved beyond just communication devices and can now execute diverse tasks. The public readily accepts the full utilization of this advanced technology.

Threats from an Extremely Contested Market (T1) - The telecommunication sector encounters brutal rivalry. Firstly, telecommunication entities typically manage their operations across a multitude of domains, encountering competition from a variety of participants in each of these fields, including mobile, fixed-line, broadband, and mobile phone accessories. Secondly, these operators encounter challenges while setting their prices for products and services which could ultimately lead to the potential loss of clientele. Given the minimal distinctive attributes among the competitors as well as the reduced

switching costs, maintaining customer price sensitivity is always a critical point which impacts the financial stability of the business.

Regulatory Modifications (T2) - The telecommunication industry is overseen by local authorities, and it may face a variety of challenges including licensing obligations and telecommunication norms. The ability of the company to flourish depends on its compliance capacity, hence any alterations in these areas could lead to a critical negative effect on the company. Quick Technological Shifts (T3) - The telecommunications sector is marked by prompt and considerable changes in technology and technological benchmarks such as the transition to 3G technology. Therefore, companies need to update their current technologies and infrastructure, requiring significant capital investment and resources. Such quick changes in technology could impact the company’s financial state, operational outcomes, and cash flow.