(IDD Market - Hutchison Page 4)
4.1
PEST ANALYSIS
4.3 Economic Environment
4.5
Competitors Analysis
4.
1 PEST ANALYSIS
The
main objective of PEST analysis is to analyze the industry environment factors
that let marketers to have a deeper understanding of factors, altering the
external market environment. Subsequently it will constitute change in the
market requirement and demand. Therefore, marketers can develop their strategy
in responding to the forces. In order to have a logical analyze in our research,
political environment, economic environment and technology environment will take
into consideration, as they are more relevant to the IDD market.
4.2
Political Environment
During
1998, Hong Kong Government considered that Hong Kong’s IDD market has reached
the maturity stage of its product life cycle. The Government thought that the
market was large enough for
more than one firm. Therefore, it retrieves the patent from Hong Kong Telecom
and issued licenses to other companies to enter into the market. After that, the
customers could use a fair price to obtain the IDD services. There was also
vigorous competition between the companies.
Besides,
after the turnover in 1997, there was a better relationship between China and
Hong Kong. More than that, China has gradually opened its telecommunication
market. It was considered that China would be a potential market to the Hong
Kong telecommunication companies. Until now, this factor helps the Hong Kong
companies to provide IDD services to China with a lower price than before. It is
believed that there will be a better development of IDD market between China and
Hong Kong in the future.
Moreover,
in these few years, Hong Kong Government strongly supports the development of
technology. It is assumed that with the help of the government, the technology
of telecommunication can be rapidly developed. As a result, it is very useful
for the development of IDD services.
On
the other hand, according to the Telecommunications Authority of Hong Kong (TA),
there is an Advertising Code of Practice (the Code), which sets out the basic
guiding principles in relation to the promotion of telecommunication services,
for the telecommunication industry 
to observe on a voluntary basis. Some examples of the "Code" are the
use of superlatives should be avoided unless substantiated by facts; and
technical jargon and technology comparisons should be used with care. Although
the "Code" is voluntary in nature, TA will monitor the industry
response to it.
Besides,
TA may review further options, for instance, forming a watchdog committee to
oversee the implementation and administration of the "Code" so that a
breach of the relevant condition would result in financial penalty. As a result,
the "Code" may restrict the creativity of the advertising promotion of
the telecommunication companies.
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