Competitor’s enterprise mobility, is said to be low,
Competitor’s rivalry ICT IndustryThe level of rivalry is intense in the industry for conventional IT services such as data center services, backup services and IT infrastructure management services. Existing competitor would include both domestic ( HeiTech Padu Bhd, Nexgram Holdings Bhd,Firmus Sdn Bhd) and international players (HCL Tech, Accenture). Having said that, the competition on providing non-conventional services such as Cloud computing, Analytics, and enterprise mobility, is said to be low, and is considered to be an opportunity for companies in the ICT industry. By tapping on this opportunity, it is likely that they will be able to gain market shares in this industry. This is taking into consideration there is essence of service differentiation when companies provides non-conventional IT services to businesses and consumers.E-commerce industryThe level of rivalry in the industry is intense as a result of large number of players selling undifferentiated products. Other than that, there has been a surge in the number of local (eg. lazada malaysia) and global (eg.amazon) e-commerce brand in the market, which has led to more competition. The rivalry has also been made worse as a result of low switching cost and weak brand loyalty. Therefore, in order to outwin other brands, different e-commerce brand will tend to engage in aggressive promotional strategies and campaigns to attract consumers.Mobile Application IndustryRivalry among existing application providers is high. This is taking into consideration that 1) application providers are able to offer their products in the various application platform and 2) big companies are aggressive with their marketing strategy. On top of that, as this industry is currently experiencing growth rate, it is expected that the number application will increase in the next few year. Hence, the level of rivalry in this industry is expected to intensify overtime.Barrier to entry ICT IndustryBarriers on entry is low for highly commercialised IT services. In addition to that, with the advancement of technology, which has allowed to learn IT skills online, it has been found that once people have mastered this skills online, they could easily set up an IT business to provide a range of IT services to end consumers.Nonetheless, new emerging technologies may have the possibility to create barriers to entry if they are able to register this technology as an intellectual property.E-commerce industryAfter taking into consideration that the e-commerce industry requires only low initial capital cost, have distribution channel that is easily accessible, and offers product that are usually undifferentiated, barriers of entry is not very strong in this industry. That being said, while it is easy to enter into this market, building a brand image and gaining the trust of customers is difficult.Mobile Application IndustryBarriers of entry is considered to be high for new entrants as they are low on learning curves, and are inexperience on consumers needs and wants. In addition to that, one has to note that new entrant will also need to compete with well-established application providers whose brand image is inculcate in consumer’s mind. Nonetheless, barriers of entry into this industry can be moderated if new application providers are able to offer an application that will differentiate themselves from the rest of the other application provider, ,and meet consumers needs.Bargaining power of suppliers ICT IndustrySuppliers in the ICT industry would consist of recruitment firms, infrastructure providers (Computers, Servers), office space suppliers. As the supplies required within the ICT industry are mostly the same conventional items, bargaining powers for suppliers is very low. E-commerce industrySuppliers in this industry consist of search engine, shipping carrier and suppliers that offer products. For this industry, the bargaining power of suppliers can range from low to moderate. Supplier’s power is low in this industry as 1) there are too many supplier in the market (eg. Books, Electronic appliances suppliers) and 2) the e-commerce brand will often have the upper hand when it come to setting rules such as labour, wages, sustainability and quality that suppliers have to adhere to. Other than that, more often than not, many of this e-commerce brand are usually the ones who decides whether or not to work with a particular suppliers. Nonetheless, one has to note that there are also circumstances in which suppliers may more bargaining power in this industry. That could occur if the supplier has strong brand name and offers good quality products.Mobile Application IndustrySuppliers in this industry consist of platform manufacturers-Apple (Apple app store) and Andriod (Google play) that create the app store for mobile devices. As of March 2017, Google play is the largest app platform as there are over 2.8 million apps for users to download, follwed by apple app store, with 2.2 million apps (Refer to diagram __).Diagram __: Number of apps on various platformshttps://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/Suppliers bargaining power is thought to be low and affected as a result of 1)high number of suppliers, 2) competitive price on inputs, and presence of substitute for each app.High number of suppliers: Currently there are more than 10 mobile platforms for app creators to release their appsInputs required: Inputs such as hardware and software that are required for developing an application are relatively cheap.Presence of substitute for each app: Substitute for each application is high, which makes it easy for consumer to switch between applications. On top of that the selling price of an app is either low or free. As a result of this, this has cause supplier bargaining power to become high.Therefore, in order to sustain in this industry, companies should look at innovating new and user-friendly products that meets consumer’s needs. Bargaining power of buyers ICT IndustryBargaining power of buyers in the ICT industry for conventional IT services is because buyers are able to find many companies who providing such service within the industry. In addition to that, switching cost is low. Hence, in order for companies who provide conventional IT services to sustain, they will either have to price their service at a competitive price, or provide non-conventional IT services (emergent technologies like data analytics and cloud computing) to buyers. In term of providing non-conventional IT services, it will cause bargaining power of buyers to be moderated as there are fewer companies that will provide these services. Since this is the case, this will in turn provide opportunity for higher margin and differentiation.E-commerce industryThe bargaining power of buyer is high in the e-commerce industry. The reason for this is due to the presence of large number of e-commerce site found in Malaysia(eg. Lazada Malaysia, Zalora malaysia). As a result of this, it has allowed consumer to switch from one site to another without any cost.On top of that, with abundance of information that consumers can find online, on products they wish to purchase, this has also cause their bargaining power to increase overtime.Mobile Application industryThe bargaining power of buyers is generally high in the mobile application industry. Contributing factors for this would include high buyer volume, low/high switching cost, and more informed buyer.High buyer volume is evident as based on researched, it has been found that the number of apps that have been downloaded from the various application platform has increased over the year. (https://www.statista.com/statistics/271644/worldwide-free-and-paid-mobile-app-store-downloads/ ). As for switching cost, switching cost is thought to be low for buyer as they have a variety of apps, including substitute apps to choose from that are relatively cheap. Lastly, with regards to more informed buyers, buyers today are found to be more informed on latest app launch and feature. This is made possible with the advancement of technology, where buyers can now easily retrieved such information online platform (eg. discussion board and application store)Thus, this will explain why buyers bargaining power is high, and why customer loyalty is low in the mobile application industry.Threat of substitutes ICT IndustryThere is no substantial substitute for IT services except for internal IT department that are found within a company. An Internal IT department will usually still exist within a corporation if its management wish to retain control over various related aspect of its business. However, as many start to argue that IT is not the main business of a corporation, and that management should focus on future growth on core areas, many of these corporation have decided to outsource its IT services over the year. This is found to be the case for Malaysia’s corporation. Although this may mean that more business will be given IT service providers, one should note that during economic downturn, these providers will be the first to suffer a hit in their revenue. This is so as many corporation will tend to cut down on non-core business expenditure (IT outsourcing expenditure) during an economic downturn in a bid to sustain through the economic downturn. E-commerce industryThe threats of substitutes in the e-commerce industry is thought to be high, and the main substitute for this industry would include physical retailer, e-retailer and home shopping. For these substitutes, they tend to gain competitive advantage through product quality, service and price. Furthermore, it has to be noted that customer in this industry has low switching cost and are more price sensitive. It is highly likely for them to switch between the various said substitutes.Mobile Application IndustryThe threats of substitutes in the mobile application industry is thought to be high. This is based on the fact that over the years, there has been an increase in the number of app developer that are found on the various application platform. With this increase , it has caused high availability of similar user-friendly applications that could be sold at very low cost.