Even today, smart phone usage does not account for the large numbers of families without direct access to the Internet. From 2002, the price of Internet service has reduced to 93%. Due to reductions in price for usage and the ease of use from satellites and fiber optics, Internet now provides easy access to users all the over the world. The ISP Industry (Internet Service Provider) is providing fast and easy access to Internet and other related services to everyone, including businesses big and small. The various companies in this Industry are providing services through wireless inspections.
The major U. S. Companies are: Verizon, AT&T and Compact. Japan based are Nippon and Telephone cooperation. Italy provides Telecoms Italian and Telephonic from Spain. The demand from consumers and businesses are on the rise daily, and the competition is increasing at a faster rate (David, 2003). The profitability of the companies in this Industry depend on how it markets its services and efficiency of By grandstander and earning profits in marketing and operations, whereas the small Internet companies are successfully operating at undeserved regions.
The major products offered by these ISP companies are access to the World Wide Web, designing the websites, and providing technical hosting and supports (Erik, 1999). These providers are allowing consumers to get an access to internet via telephone lines, wireless or cable connections. A SOOT analysis helps the companies or industry to analyses and understand where the industry should place itself in the market, how they can improve and how to defeat their competitors.
With the SOOT analysis, a business understands its competitor’s position in the market or industry and identifies where the funds and sources of the company should be invested so as to create new products and services for the consumers (Mime, 2010). Thus before conducting the SOOT analysis, we will divide the Sips into four groups: large Sips, small Sips, Tells and cable companies STRENGTHS In the Internet Provider Industry, the large or big companies have much more experience of the industry in comparison to small Sips.
Consumers who are aware of these larger branded names will subscribe to such known companies. Large Sips have the ability of innovation; they can afford taking risks. Their huge infrastructure s based on laid fiber optics, thus providing Internet at lower rates and they also own some parts of networks which increase their strength in the market (Ihram, 2013. ) Their trained and qualified staff is more experienced and provide high quality work. WEAKNESSES The large companies in this industry lack superior customer service.
With technology rising faster than consumers are educated, computer education and training is on the rise as well. This need for customer service, especially in larger rural areas, brings the need for more customer service centers. Such big companies are not able to provide local contents to their customers, especially the small businesses. They might provide national wide data but not the local content. The national wide data might be useful across the board but many customers who lack the intimacy are outraged (Varian, 2011).
The Sips are facing real problems in rural areas, as they cannot reach them due to connectivity problems. These companies cannot lay their fiber optics in such places because they face problems related to policies and security. Also the government norms and regulation do not support such Sips entering these areas. Having poor infrastructures and connectivity problems forces Sips to rely on other providers and on their infrastructure. OPPORTUNITIES The Internet Provider Industry offers a plethora of opportunities for companies.
For the large Sips, building strong relationships with Tells companies will be fruitful. The reason is that the Tells companies want to enter these markets so with the ISP The Sips and content providers also enter into mergers for which both companies can enter new markets. For example, when Reliance Industries acquired Infinite, which is an Internet Service Provider, the company participated in the bidding process of a 36 spectrum. Through this acquisition strategy, Reliance was able to allocate and grab the huge amount of spectrum through the nation (Varian, 2011).
This acquisition proves that by acquiring small companies, the big Sips can increase their values which are far more beyond the price of the company. To such a degree, there are opportunities for big Sips to purchase small Sips who are ready for purchase. The other opportunities are covering alternative parts of the world and reading centers for Internet facilities, introducing new advanced technologies related to Internet. They’re able to access more customers at lower rates, penetrating into new unseeded markets and rural areas.
As large companies have the resources and knowledge, they also provide the opportunities for developing new internet technologies. Lastly, they can branch out into other segments of the industry, which will create an invaluable brand name and customer base. THREATS The largest threat to any ISP is the entry of their established competitors Internet service providers such as Tells and cable companies, etc. These competitors have good experience, personnel and resources to buy these Sips.
In such a competitive environment, the market might squeeze, resulting in only those Sips who provide something exceptional to keep them afloat and surviving. Although there has been opportunities for partnership, mergers and acquisitions, there is the risk and threat of losing the established competitive market. Looking at growth of these Sips, the market will become saturated (Foley, 2012). The small providers will survive by serving the niche markets and the big providers will continue to survive, as they are he leader- leaving no space for intermediary providers.