Porter Analysis for Ericsson

Topics: Automotive industry, Renault, Telecommunication Pages: 3 (825 words) Published: January 26, 2014
1. Rivalry among existing firms:
The rivalry among existing competitors in the automotive industry is very aggressive. Note that since the arrival of the Chinese participant Huawei, eventhough it still has no presence in the automotive industry, they already have services that will be integrated this year as both telecommunications and internet GPS for cars, these features were already accepted and endorsed by recognized auto manufacturers. All this has made the competition become more intense. Additionally, the company has ventured into Erictel the automotive industry, offering its telecommunication services to prevent theft of cars. On the other hand, there is also a partnership between Apple and Audi, Apple offers a service where the mobile device is connected to the car and can control some functions within the same radio as through mobile applications. It competes directly with the partnership between Ericsson and Volvo where similar mobile connectivity services were implemented in their electric cars, which can be accessed from any personal device, which can not only access information but control some car functions remotely. Last but not least, Ericsson has decided to invest in this industry with its "Auto on- Cloud" service which has earned accolades. This indicates that the outlook for the telecommunications industry in the automotive industry is favorable because, even though the competition is aggressive, there are very few rivals in it, and Ericsson is the current leader in telecom sector automotive and transportation. 2. Threat of new competitors:

The barriers set by the industry are high because a large investment is required in infrastructure and technology systems to provide a service of this type, in addition to departments responsible for research and development that will maintain at the forefront of the company. Additionally, not only requires a large financial investment , but great efforts to recruit appropriate personnel are also...
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