Businesses can use Porter's Five Forces to assess and outmaneuver their

competitors in the marketplace. Over the years, the Philippines' telecommunications

business has a great competition over the years, and PLDT Inc. is one of the key
players in the industry. Using Porter’s Five Forces Model we will analyze the
competitive forces of the company and suggest the most suitable strategy for it to grow
more.

 Competitive rivalry - This force examines the level of competitiveness in

the marketplace. In the telecommunication industry, the rivalry between
the telecommunications companies in the Philippines is perceived to be
weak, with having PLDT and Globe as the top two competing firms.
 The bargaining power of suppliers - This force examines how much
influence a company's supplier has and how much control it has over the
company's capacity to raise prices, lowering profitability. Thus, in PLDT,
Inc., the bargaining power of suppliers is relatively low. The reason behind
this is that in order to keep up with the fast-paced evolution of
telecommunications, the corporation would require a vast network and the
most updated technology.
 The bargaining power of customers – This force examines consumer
power and its impact on pricing and quality. Buyer bargaining power is
quite limited for PLDT Inc. Consumers cannot expect more from PLDT
because the corporation provides services to the general public.
 The threat of new entrants - This force takes into account how simple or
difficult it is for competitors to enter the market. The threat of a new entrant
is currently low in the telecommunications industry. This is due to the fact
that the telecommunications industry necessitates a large amount of
capital to be funded and formed, as well as government and regulatory
rules.
 The threat of substitute products or services - This force examines how
easy it is for customers to switch from one company's product or service to
another. The threat of substitute products is currently moderate for PLDT
 Inc. This is due to the fact that only a few companies offer the same
services as PLDT.

After analyzing the competitive forces of PLDT Inc., the cost leadership strategy
is the most suitable strategy for the company to expand its competitive advantage.
Since the demand for telecommunication services is high, lowering the prices of the
company’s services can be a way for more consumers to switch to PLDT, thus
increasing its market shares. Developing the most effective distribution channels,
having access to the most up-to-date technological tools to aid production processes,
employing lean manufacturing methods, and having a strong bargaining position when
negotiating with suppliers are some of the strategies PLDT can use to establish a
competitive advantage based on cost leadership.