Submitted by: Submitted by astrion
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Category: Business and Industry
Date Submitted: 05/05/2010 10:02 AM
Established in 1930 as „The Belgian National Telegraph and Telephone Company“ 1991-recognized as autonomous public-sector enterprise calles Belgacom Close affiliation with the state - 50.1% owned by the Federal Government Services provided: ◦ Fixed line telephony (FLS) ◦ Mobile communications ◦ Broadband data transmission ◦ Internet
Found in 1969 known as the independant intelligentnetwork service provider Lounched the first baseband modem-Crocus All companies including Belgacom were using their product Operates in two distict divisions services (consultancy, network management) and products (network equipment products-router switchers)
Political ◦ Stable political environment Economical ◦ High GDP per capita (higher than EU average) ◦ Stable inflation rates (1.4%) Social ◦ Increased frequency of mobility (increased demand for mobile communication ) ◦ Rapid change of customers demands
Technological
◦ Trend towards convergence ◦ Integrated Communication Technology (ICT) – broadband, increased bandwidth ◦ Market demands more services – bundled products
Environmental
Legal ◦ Liberalization and consolidation of the Belgian telecom market
Source: Belgacom Investor &Analyst day 2008
Decreased barriers to entry New Entrants Higher Bargaining power Changing preferences
Suppliers
Competitive Rivalry
Buyers
Intense rivalry Substitutions No real substitute product
Belgacom has lack of expertise in the field of ICT business in order to develop and grow organically Can Belgacom cope with the challenges alone? NO, Belgacom needs business partner Through M&A, Belgacom will save time tapping into the ICT market
Nature of the market – up till now none of the telecoms have experience in the ICT market
Strategic alliance offers cheaper variant to enter the ICT market (if possible) Strategic Alliance allows more flexibility
Telindus already...