Cross-Sector Competition in Telecommunications

Jochen Wulf () and Rüdiger Zarnekow ()
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Jochen Wulf: http://www.ikm.tu-berlin.de

Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, 2011, vol. 3, issue 5, 289-298

Abstract: Cross-sector competition in the information and communications technology sectors (ICT sectors) constitutes a key strategic challenge for telecommunications companies. Due to increasing convergence, value creation is resulting in a greater degree of interaction. The diversification potential of telecommunications businesses is therefore changing with respect to associated ICT sectors, such as hardware, software and media. The article analyses cross-sector competition in the telecommunications industry on the basis of the diversification activities of ICT companies. A concentration of competitive interdependence in the ICT sectors is demonstrated using a cluster analysis of 34,142 companies. The cross-sector activities of telecommunications companies are investigated using contingency and dependency analyses, and the diversification-related competition in the telecommunications sector is also analysed. With regard to the telecommunications sector, particularly high level cross-sector competition with the media industry is identified, as well as strong diversification activities in the software sector. The results are used to derive the potentials and risks that have a significant bearing on the structure of the cross-sector competitive environment of telecommunications companies. Copyright Gabler Verlag 2011

Keywords: Telecommunications sector; Cross-sector competition; Convergence; Vertical diversification; Horizontal diversification (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1007/s12599-011-0177-1

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