Five Force Ais

1.Competitive in industry (5/5 points)

AIS is a provider of mobile network consist of Voice and Non-Voice service. This business is characterized by the concession contract. There are only two competitors which are TRUE and DTAC. AIS also take highest market share of this business (54% at 2011 from a cursory study of the author at the era of the competition). Red Ocean is made by these three companies before the appearance of the highly competitive manner. As a result, no firms get benefits. Later, the charges are quite close to each other and there's less competition. However, AIS is easily observed in strength of signals over its competitors in both urban and rural. While DTAC still have problems with the frequent crashes last year (2012), and TRUE's signal quality is still low in the rural.

2.Negotiation of suppliers (2/5 points)

By the nature of business is a Concession Agreement with the government, the government role as a supplier who gives rights to use the frequency. TOT using 900 Mhz frequency and TOT also get the revenue at 20% for prepaid customers and 30% for monthly income, and AIS pay 30% for Department of the Telecommunications for using 1800 Mhz frequency. Because of the concession agreement business, the chance for negotiate for suppliers is low. The other competitors are willing to pay a concession fee if AIS won't pay. However, the future is a 3G license to use the 2100 Mhz frequency to 15 years of age by the past auction. AIS paid for charge license about 14,625 million which is proportional to the amount of Fix in revenue each year. It means that AIS pay for the service frequency 2100 Mhz at 975 million per year, which is quite low. Furthermore, with this low price it cause conflicts between organization of the government that may take no benefits .So, they set limits of charges to protect the interests of the public service. If there is any consensus, it needs to be accepted as inevitable.

3.Negotiation of customers (4/5 points)

There are only three providers which are AIS, DTAC, and TRUE. The factors that customers select the providers depend on the quality and price. Nowadays, AIS is no.1 in the quality of signal, so it is the first optional for customers to choose. Customers can pay a price higher than the other for getting better services. However, the nature of the mobile business is an opportunity for customers to meet the diverse promotion depends on the type of usage. Its seem that customers have the power to choose products. But from the author's own experience often find that the product is designed to allow customers to walk in to game of the providers. For examples, call on the same network with special rates, Buffet calls at any period of time only (If you call another period , rate will cost different.), and etc.

4.Threat of substitute