Market analysis in fixed telephony and analysis results by Porter´s model

This paper describes theoretical aspects of Porter´s five forces model on Croatian industry of fixed telephony, and with results from research we determined trends and factors which influence this industry. This analysis has shown a solid profit potential of the industry, which is based on services that became an integral part of everyday life in the business and consumer segment. Analysis of arrival of new services/products on the market also showed a low threat of entry and substitution. The industry contains unattractive features as well, such as constantly decreasing service prices, by substitution with new services on the market, and with investments by service providers in equipment and technology which is cheaper and easier for managing. The result of research confirmed that price is not a crucial factor in service provider or service selection, yet a significant part in that decision depends on quality of service and portfolio services that are available.