CHAPTER 2:SAY "CHARGE IT"WITH YOUR CELL PHONE

1)Do you view this technology as a potential threat to traditional telephone companies?If so,what counterstrategies could traditional telephone companies adopt to prepare for this technology?


Yes,I agree with this statement that traditional telephone companies because based on 3 strategies.In thus case it refer to differentiation.It can create competitive advantages by distinguishing their products on one or more features that important to their customer.For example,from traditional phone can make to smart phone .This smartphone is easy for example we can make transactions with use this phone.we can paying the bills and many more.


2)Using Porter's Five Forces describe the barriers to entry for this technology?

Barriers to entry for this technology is product and services features that customers have come to expert from organizations and must be offered by entering organizations to compete and survive . Besides that,Technology involved. The more sophisticated and complex the technological requirements are, the more difficult it will be for other entrepreneurs to enter that kind of business. If you possess that kind of technology, then you can capitalize on it in dominating your chosen industry. It can become your niche that others cannot just enter into.In samsung phone have been use android.This application are very smart because we can download directly without to go anywhere.For buyers have many choice in market right now.They can make a decision.


3)Which of Porter's three generic strategies is the new technology following

In this case Porter;s three generics strategic follow differentiation.It means create competitive by distinguishing their products on one more features important to their customers and it unique features or benefits may justify price differences and stimulate demand.


4)Describe the value of chain of the business of using cell phones as a payment method?

Mobile payment, also referred to as mobile money, mobile money transfer, and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile divice Instead of paying with cash, check, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods.

Refer to http://en.wikipedia.org/wiki/Mobile_payment.

Value chain  is a concept from business management that was first described and popularized by Micheal Porter in his 1985 best seller.Value chain of the business of using cell phones as a payment method is Merchants – it accept payments from the consumers by reading the card at the Point of Sale (PoS) machine and easy to customers.Secondly,Payment networks  and it connect and switch transactions between merchants & issuing banks.For example buyers just pay through telephone and the transitions are have.Thirdly is Issuers manage customers accounts and also take associted risk.Lastly is Acquirers hold merchant accounts and manage merchant payments.

5)What types of regulatory issues might occur due to this type technology?

Types of regulatory issues might occur due to this technology is fraud.Nowadays,technology is not something new to people.This technology has advantages and disadvantages.Fraud may occur in money transactions.For example,we already pay the money but the person that we must pay the money not received the money.This issues are usually occur in our daily life.Besides that,DOUBLE CHARGES.Nowadays,many people like online shopping. If we buy the thing,the seller charges the money.