BUSINESS REPORT: Industry Analysis Report 2011
Overview of the company and purpose of the report
A university research group is considering starting a business in United Kingdom and has asked a firm to analyse the external business environment using Porter’s 5 forces. The given time frame for this particular analysis is 3 years into the future.
The company/ research group has figured a technology called “Li-fi”, which uses Visible Light Communication to transmit data and hence has the ability to provide faster broadband to UK domestic customers, even up to 200 MB/s.
Purpose: This report analyses the UK broadband market and key competitors using Porter’s 5 forces and gives a detailed analysis relating to the force called “Threat of new Entrants” by considering the barriers to entry , the “LI-FI’ technology would face. It chooses the 5 most important barriers to entry and proposes for how each barrier might be addressed.
TABLE OF CONTENTS
Market size of broadband (in £s) in the UK and forecast
The key competitors
2) Porter’s 5 forces: Threat of new entrants
5 most important Barriers to Entry for Li-Fi technology
1.1 The market size of broadband in UK in pounds Internet service has grown fast over last 5 years. It has become central to people’s lives and has fundamentally transformed the method to access and share information. During the recent protests in UK, one person stated “We use Facebook to schedule the protest, twitter to co-ordinate them and YouTube to tell the world”. In the next 4 years, 1-2 billion people are estimated to enter the broadband consumer market. Penetration has evolved over time in UK. Internet connections have grown steadily but mostly have been driven by broadband connection. The graph below shows the growth different types of broadband penetration in houses. 74% of the UK household today have broadband. Mobile broadband is a relatively new...