ACL case Study
Case Analysis : Upstart’s Assault
Background
TelZip has come up with an attractive offer for business customers who were willing to leave their current service provider and enter into a long term contract with them. The ad of Telzip says “Free broadband forever with Telzip! Save at least €450 a year when you switch from Meridicom!"
Telzip is adopting penetration pricing by offering low prices initially. Even though it would affect their profit margins and that of the whole industry but this would help them to gain more market share from the incumbent operators.
Case
Jospeh Ulan, the Chief Marketing officer of Meridicom is worried that they can lose market share especially if other companies also follow such kind of strategy and he is in a dilemma whether to ignore or respond to TelZip's bold move.
Objective for Meridicom:
Develop strategy to protect the Market share from Telzip or any other competitors who can offer low prices or launch attractive schemes. At the same time, the company should make sure that the profit margins are not affected. SWOT Analysis of Meridicom
STRENGTH WEAKNESS OPPORTUNITY THREAT
1) Market leader in Landline and Broadband.
2) Price leader in the Landline Category. 1) Business Processes not integrated.
2) High service price.
3) Internal conflicts. 1) Growth in mobile segment where the market share is low.
2) Improve performance and quality of Service. Competitors offering low prices and attractive schemes like free broadband.
Case Solution:
1) Focus on Customers availing more than one service
The landline Business customers of Meridicom are the one who use:
a) only landline
b) landline and broadband
c) all the three services
Telzip’s offering is for the business segment customers who can enter into a long term contract with them. Mostly these are the customers who are availing more than one service from different departments. Certainly these customers deserve greater attention. It is very important for the
Background
TelZip has come up with an attractive offer for business customers who were willing to leave their current service provider and enter into a long term contract with them. The ad of Telzip says “Free broadband forever with Telzip! Save at least €450 a year when you switch from Meridicom!"
Telzip is adopting penetration pricing by offering low prices initially. Even though it would affect their profit margins and that of the whole industry but this would help them to gain more market share from the incumbent operators.
Case
Jospeh Ulan, the Chief Marketing officer of Meridicom is worried that they can lose market share especially if other companies also follow such kind of strategy and he is in a dilemma whether to ignore or respond to TelZip's bold move.
Objective for Meridicom:
Develop strategy to protect the Market share from Telzip or any other competitors who can offer low prices or launch attractive schemes. At the same time, the company should make sure that the profit margins are not affected. SWOT Analysis of Meridicom
STRENGTH WEAKNESS OPPORTUNITY THREAT
1) Market leader in Landline and Broadband.
2) Price leader in the Landline Category. 1) Business Processes not integrated.
2) High service price.
3) Internal conflicts. 1) Growth in mobile segment where the market share is low.
2) Improve performance and quality of Service. Competitors offering low prices and attractive schemes like free broadband.
Case Solution:
1) Focus on Customers availing more than one service
The landline Business customers of Meridicom are the one who use:
a) only landline
b) landline and broadband
c) all the three services
Telzip’s offering is for the business segment customers who can enter into a long term contract with them. Mostly these are the customers who are availing more than one service from different departments. Certainly these customers deserve greater attention. It is very important for the