Five Forces Framework for the Telecom Industry in Kuwait

Five Forces Framework for the Telecom Industry in Kuwait
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“Five Forces Framework for the Telecom Industry in Kuwait”
Introduction
The technological evolution creates a boom in the contemporary era and urges corporations to adopt innovations for adding value for consumers. Similarly, the telecommunication industry advances with time due to the changing preferences of consumers and advancement in technologies, which augments the competition among the telecom companies globally (Market Research, 2020). For this purpose, the research evaluates the competitive intensity of Kuwait’s telecom industry and determining the associated opportunities to invest in a particular region by utilizing Porter’s five force model.
Porter’s Five Forces Framework for the Telecom Industry in Kuwait
According to Chesula and Kiriiny (2018), Porter’s five force model is the strategic framework that supports the firm to investigate the competitive intensity of the particular industry and explore the opportunities to grow and invest in the corresponding market to obtain the profitable results. The analysis is applied to the Telecom Industry in Kuwait as follows:
Buyers’ Bargaining Power
The bargaining power of consumers in the industry is ‘moderate’. There is established competition in the industry. Furthermore, switching costs are from low to zero. However, the average purchase of an average buyer is negligible while compared with the sales volume of an average market player (Market Research, 2020). Therefore, an average consumer cannot affect a telecom company with their individual preferences (such as boycott). In this way, the power is almost evenly balanced between consumers and the industry.
Suppliers’ Bargaining Power
Bargaining power of suppliers is low. There are several suppliers actively competing against each other in the industry. Furthermore, each supplier aims to sustain its contract with potential and...