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The Phone House (TPH) is a subsidiary of Carphone Warehouse Group plc and it is the leading telecoms distributor with a fully-owned and independent retail network in France. TPH owns and operates 305 shops in France and offers mobile phones, mobile phone packages, accessories, and broadband Internet service. This is a case in strategic management that covers the topics of industry analysis, competitive advantage, and vertical integration in a mobile retailing industry. Before moving into the central issue, a 5-forces analysis of the mobile phone distribution industry in France is conducted. Based on the industry structure discussion, the students are in a position to identify the sources of competitive advantage of TPH, using profitability and asset management analysis. Finally, the discussion evaluates the strategic moves examined by management, taking into consideration the key question of whether vertical integration can enhance the firm''s competitive advantage.