<p align="justify">Deutsche Telekom is the German based telecommunication company, whose headquarter is in Bonn. It is known to be as the largest telecommunication service provider in terms of revenue in Europe. DT- Deutsche Telekom was established in 1996, as the state-owned company and was a monopoly. Later, it was privatized. This company operates and functions many subsidiaries worldwide, which include mobile communication like T-Mobile (Deutsche Telekom, 2019). The managers of the company can use the Porter five forces model to recognize the organization’s competitiveness in the industry, and to keep the close sight on the rivals’ actions, and to encourage them to make strategic decisions. The company can also examine the factors which have impact on the business environment. These five forces model helps in making the environment competitive and also erode the profitability. Here is the detailed porter five forces analysis of Deutsche Telekom;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Bargaining power of the buyers determines the pressure which consumers exert on business companies for getting the high-quality items at very affordable prices along with the great customer service. This clearly influences the ability of Deutsche Telekom to achieve the objectives of business. There is concentrated customer base in order to increase the bargaining power. The low costs of switching both psychological and economical increases the bargaining power of the buyers. It is necessary for the Deutsche Telekom to disperse the customer base geographically, and integrate backwards, so that buyers will be more. The company should increase the switching cost and explore new market segments for introducing new services (Henry, 2018).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The bargaining power of the suppliers influence the profitability of the company, which makes the company strive hard to gain the cost advantages, rather than selling the services in high cost and have few customers. The bargaining power of the suppliers in the telecommunication industry is low, because of many suppliers but few buyers, which makes the suppliers’ control over prices low. It is necessary for the Deutsche Telekom to strengthen its position against the suppliers through lowering the dependent on very few suppliers and increase the supply chain. It is necessary for the company to develop the contractual relationship with suppliers for improving the efficiency of supply chain (Murphy, 2018).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">Threats of entry in the telecommunication industry is low, specially in the case of Deutsche Telekom because of the several subsidiaries and operating in diversified market. One of the major reasons for the low threats from new entrants is because of the capitalization cost involve in setting up the networks, and distribution of services. It requires huge sum of capital along with other factors of productions, which are very expensive. Moreover, competing with giants, who are already occupies the market is another difficult task for the new entrants. There are many rules and regulations involve in setting up the business, especially in the technical and tertiary industry, which new entrants have to face (Albini, 2013).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">Threats from the substitute products in the telecommunication industry is moderate to low, because of the non-traditional products and services are introduced, which are consumer friendly and reasonable for the consumers. Satellite and cable TV operators are now competing for the buyers with the direct lines. Voce messages, internet telephones, screen sharing, and many other services have been introduced, and so Deutsche Telekom is still trying to innovate new things for its customers to differentiate itself from its rivals (Albini, 2013).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">Rivalry does exist in every industry now and in every place of the word. Competition is intense in the telecommunication industry and so for the Deutsche Telekom. But measures have to be taken to prevent itself from getting affected. The Deutsche Telekom needs to focus on implicit expectations and needs of the consumers, and this could e done by maintaining the long-term customer relationship. It should also focus on investing more in the research and development activities for identifying new segments and geographical locations to diversify and expand (Henry, 2018).</p>
<h2 align="justify">References</h2>
<p style="text-align: left;">Albini, G. 2013. An Analysis of the European Telecommunications Strategic Environment: How Can Strategic Actions Be Defined to Adapt to the New Scenario? [Online], Available at: <a href="http://www.diva-portal.org/smash/get/diva2:636858/FULLTEXT01">http://www.diva-portal.org/smash/get/diva2:636858/FULLTEXT01</a>, [Accessed on: 7th July, 2019].<br />
Deutsche Telekom, 2019. Company Profile. [Online], Available at: <a href="https://www.telekom.com/en/company/company-profile">https://www.telekom.com/en/company/company-profile</a>, [Accessed on: 7th July, 2019].<br />
Henry, Z. 2018. T Deutsche Telekom Porter Five Forces Analysis. [Online], Available at: <a href="https://www.case48.com/porter-analysis/13617-T-Deutsche-Telekom">https://www.case48.com/porter-analysis/13617-T-Deutsche-Telekom</a>, [Accessed on: 7th July, 2019].<br />
Murphy, E. 2018. T Deutsche Telekom Porter Five Forces Analysis. [Online], Available at: <a href="https://www.essay48.com/term-paper/13617-T-Deutsche-Telekom-Porter-Five-Forces">https://www.essay48.com/term-paper/13617-T-Deutsche-Telekom-Porter-Five-Forces</a>, [Accessed on: 7th July, 2019].</p>