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The Internet Service Providers(ISP) comprise of the companies that use wired infrastructure to
make the internet and other related services available to customers. These providers give services
such as web hosting and we designing, as well as offering consultation on internet connectivity to
particular hardware and software. Internet operators or providers also lease out their network
capacities so as to give support to other companies in terms of support of their network (Abdelaal,
2013, p.176). The internet service provider’s industry does not include the provision of wireless
internet and Voice over Internet Protocol (VoIP) services.
In the past years, the internet has grown rapidly, which has been a great benefit to the
Internet Service Providers. This is expected to raise the broadband connections in the country,
which will, in turn, lead to growth in revenue. In the year 2016, the expansion of connections that
are broadband in the rural markets and the increase in demand from the business sector led to an
increase in revenue of up to 9.7 dollars. The growth in revenue over the last five years was reported
at 4.3 percent every year.
The reason for the high rate of growth is because people do not see the internet as a luxury
but it is now considered a necessity. This aspect is expected to even go higher within the next five
years. There has been a tremendous growth in the number of devices by consumers which requires
an internet connection to access specific services. Therefore, the demand for high speed as well as
reliable access to the internet has grown. With the rise in the internet traffic, the Internet Service
Providers will be capable of exercising control over their networks, which will mainly be done
through controlling of bandwidth and data caps. Despite the opportunities that this will provide, it
will provide challenges for Internet Service Providers as well as the key regulator the industry, the
Federal Communications Commission(FCC).
The product features that would appeal to people’s culture in the United States
As above mentioned, the majority of the people in the United States no longer consider the
internet as a luxury but as a necessity. Internet usage has become part of the people’s culture, be
in schools or home, as well at places of work. This aspect has been driven by the numbers of
services that one can access and the much that one can accomplish through the use of the internet.
For instance, with the internet, one does not need to sit in class all day. The internet gives options
to study online (Brown and Christopher, 2013, p.178). In addition, with the internet one can access
various services including services offered in government offices, which has made the product
more appealing to the majority of Americans.
For instance, take the example of a situation where by one needs to enroll for a particular
course in a given college but is not sure of what opinion to go with. Without the internet, this
would mean a person going around in colleges making inquiries until one gets an option that fits
his or her needs. The majority of Americans have no time for this since they spend most of their
time working and any free time they het, they prefer to spend it with their families. With the
internet, activities such as making inquiries can be conducted via the internet while one is still at
work or even at the comfort of one’s home. This aspect has become so much appealing to the
culture of Americans.
External drivers to the growth of the industry
The internet Service Providers industry does not just grow from anywhere but there are
some drivers to the same. For instance, as the volume of traffic increases, the same case applies to
the demand for the connections needed to transfer data. The providers have to increase their
internet connectivity speeds, which in turn, makes consumers make an upgrade to their internet
packages, this contributes positively to the industry by increasing the overall revenue as well as
The percentage of services that are conducted online has also gone up, which has risen the
demand for internet connections, especially from the business world. The Internet service
Providers in most instances give value-added services to customers, which makes their products
even more appealing and popular among the various market segments. In addition, the popularity
of cloud computing has also increased, which has, in turn, increased the number of services that
are offered online.
The third aspect is the growth in the demand for broadband internet over the years. This
demand has been contributed by more reliance by consumers on faster and always available
internet services, which is meant to fulfill their social and professional, as well as entertainment
needs. In addition, the use of Smartphones by Americans has also gone up, which has, in turn,
increased the number of internet connections through mobile phones (Savin and Jan, 2014, p.128).
In fact, mobile phone internet connections are far beyond the number of broadband connections.
However, mobile phones do not offer as high interest speeds as the wired internet.
In addition to the above, there has been an increase in investment by private companies’ in
computers and software. This increase in computing technologies has increased the need for
information collected from different sources, which can only be accessed through the internet. The
industry by Internet Service Providers is the one that connects various sources of information,
which has seen the increase in private investments in computers to enable more people to get
connected to these sources.
The supply chain
The supply chain in this industry is made up of the key buyers and the key sellers. The first
key buyer includes those who provide voice over Internet Protocol. These providers usually
depend on the internet connections that their customers have in order to deliver services. This
industry has become a very strong booster for the Internet Service Providers since the more it
grows, so has the ISP s grown. The growth and expansion in one of them is a win for the other
The search engines also form a major part of the buyers in the United states. Just like the
VoIP, the search engines also depend on the internet in order to deliver their search services to
their customers and to deliver advertising services to the marketer. In order to boost web traffic,
the search engines come up with applications and content that triggers the same, which then leads
to an increase in the demand for services from the Internet Service Providers (Wang, 2012, p. 180).
In addition, many advertising agencies have increased their reliance on the internet in delivering
services to their clients. In order to deliver these services, high speed is of the essence. This reliance
has also led to the growth of the IS industry.
The largest consumers of the internet in the United States are the household. These are the
people who use the internet at their homes mainly for pleasure. Today, many people prefer
accessing and watching what they like online other than relying on traditional media to just get the
routine programs. In addition, others also use the internet to conduct business at home and to also
do their shopping. Gone are the days when one had to visit a business enterprise in order to have
access to a particular product or service.
Shopping can be done online where by, one does a selection of the products and services
that he or she needs, and one can make an order and have them delivered at the doorstep while
they are still in the comfort of their homes. The households have boosted the growth of the Internet
Service Providers by a very high margin. In addition to business and pleasure, there are also those
who do distance or online learning. They also have to rely on the internet in order to communicate
with their lecturers and make inquiries, some of their exams are also conducted on an online
platform, therefore, one must have internet connection that is very reliable.
The supply chain in the industry is also formed by the internet sellers. The first industry is
the Transmission Line Construction in the United States. This is the industry that does the
construction of the entire infrastructure that is used by the Internet Service Providers. The next
buyer is the Telecommunication Networking Equipment Manufacturing in the United States. This
is the industry that deals with the manufacturing of all kinds of equipment that are used by the
Internet Service Providers to offer internet services to their customers.
The third player is the cable, Internet and Telephone Providers. This is the industry that
provides the Internet Service Providers with cable services since, in order for the ISPs to offer their
services, they must rely on the cable network. The wired Telecommunication Carriers also form a
crucial part in the supply chain of the sellers this is because they are the ones who provide wired
services to the Internet Service Providers to enable them to supply their network services.
Key products and services
The key product offered by the Internet Service Providers is internet access. However, the
industry uses various methods to make the product available to their clients. Each type of internet
connection offered has its specifications in terms of speed as well as variations, and there are also
advantages and disadvantages associated with the same. These are the variations or the differences
that distinguish between broadband and narrowband internet access. These variations occur for
both residential and commercial purposes since one person’s needs cannot be similar to other
people’s needs. The kind of services that one receives and the quality that customers receive
depend on one’s need as well as the amount that a person is willing to pay for the services. The
higher the quality of the services, the more expansive it is. Customers are, therefore, provided with
options and one is free to go with the service that suits his or her needs in the best way.
For instance, the needs of household users are different from the needs of the business
users. For household users, they can rely on narrowband connections but for business, especially
advertising agencies, they need broadband connection so as to offer reliable services to their
customers. The strength of connection may also differ for small -sized and large enterprises since
the larger and enterprise is, the more number of clients that it has, which would require stronger
internet connection as compared to the one sued in small-sized enterprises.
In this highest percentage of the members are using the Residential broadband services and lowest
percent is going to Dial-up internet services and narrowband access is typically associated with
Dial up access.
The Internet Service Providers in the United States consists of a medium concentration.
There is a dominant group that is formed by larger groups and there are quite a number of small
players in the industry. There are government regulations that prevent any player in the industry
from becoming extremely dominant since this world mean the loss of market for other small
players in the industry who are significant as well (Brown, 2013, p. 119). This world access internet
access by small households since they cannot afford to pay for services from the large players in
the industry. The market, therefore, has to remain balanced in order to supply for the needs of all
Rent & Utilities
Table Source: (Madeline, 2016)
Here, table shows the Average Costs of all Industries in Sector and Industry Costs. In this the
author explained about the Profit, Wages, Purchases, Depreciation, Marketing, Rent & Utilities
The Internet Services industry is one that has experienced tremendous growth over the
years and it continues to experience the same. The main reason for this growth is due to the change
in the perception of the internet as a luxury and now it is viewed as a necessity by every person in
the United States. Children as young as ten years of age rely on the internet to access some of their
learning materials, which is an indication the growth in the industry is not coming to a halt in the
Madeline, L. (2016). Internet service providers in the US. IBIS World industry report 51711d.
Abdelaal, Abdelnasser. Social and Economic Effects of Community Wireless Networks and
Infrastructures. Hershey, PA: Information Science Reference, 2013. Internet resource.
Brown, Ian, and Christopher T. Marsden. Regulating Code: Good Governance and Better
Regulation in the Information Age. Cambridge, Mass: The MIT Press, 2013. Print.
Brown, Ian. Research Handbook on Governance of the Internet. Cheltenham: Edward Elgar,
Savin, Andrej, and Jan Trzaskowski. Research Handbook on Eu Internet Law. Cheltenham, UK:
Wang, Xinbing. Wireless Algorithms, Systems, and Applications: 7th International Conference,
Wasa 2012, Yellow Mountains, China, August 8-10, 2012. Proceedings. Berlin: Springer,
Product: Internet Service Providers
This is the conclusion to the analysis.
Please use the following Checklist to ensure a quality final assignment report. Around 10 pages
single spaced. (5000 words)
1. Cover page and overall professional report, Table of Content, original graphs (not cut and pasted
from somewhere else). Professional bibliography using APA Style. (25 points)
2. Presentation of your analytical framework used to analyze and present the decision to invest in a
foreign country. (50 points)
3. Economic Analysis given at least 50 percent of the paper. Core economic data on the country
provided in a table. (75 points)
4. Political, Market, Cultural and Ethical and “inequality” risks analyzed and integrated. Core risk
data provided in separate tables for each area (60 points)
5. Core product analysis and data (25 points)
6. Rationale for your decision to invest based on the above analysis. (25 points)
Final Paper Checklist/Template – Global Economics – MBA
1. Cover Page
2. Table of Contents
3. Abstract – 100 -200-word summary of the paper.
4. Introduction –
a. Specify the country and the product you are exploring. Specify the different areas
you will explore in the paper.
b. Introduce your analytical framework graphic that will help your decision analysis
a. Cultural Intelligence – Core data table from Hofstede and analysis in terms of
product success in the country
b. Political intelligence – core data table from World Bank Governance and analysis
in terms of political stability of the country
c. Market Intelligence – core data table from World Bank Doing Business data and
analysis how easy it will be to enter, do business and exit.
d. Product intelligence – who are your competitors and what is the market segment
you are going after
e. Economic Intelligence – core data on the country’s economy and current economic
status. Is there economic stability and economic potential for your product? This
section should include the following (about 3 pages at least)
Core data table of economic data and trends
Policy cross analysis
Economic stability in the short and long term
Exchange rate analysis
6. Final Analysis integrating all elements in “4” using your analytic graphic and specifying your
decision based on the analysis to invest or not in the country.
7. Conclusion – summarizing the paper.
8. Bibliography – make sure solid academic resources (Journals, Books, Official sources of data) are
cited and used in the report and properly listed using APA style.