Market Evaluation: Kcell Company
About company
Kcell company was established in "GSM Kazakhstan" company was established in 1998 and since February 1999 it began rendering services of cellular communication under the trade mark Kcell. Activ brand was launched in September the same year. Owning to the well-thought out marketing strategy long since the beginning of the year 2000 the Company 's subscriber data base has exceeded 100,000 people and doubled by the end of the same year. Today the Company 's subscriber data base exceeds 7 million customers. (Kcell, 2010)
Product description
Activ have 19 main types of tariffs which covers different segments of the market. This type are divided in order to satisfy client needs by demographic and geographic context, for example, there are tariffs which are oriented “For heavy SMS users”, “For young people and students”, “For mobile internet users”, “For subscribers with hearing impairments”, “Regional tariff plans”, “For active talks within Activ /Kcell/ Vegaline network”, “For calls to any destination in Kazakhstan”.
Competitive analysis
The main competitors of Activ and Kcell in today reality in Kazakhstan market are: 1. Beeline 2. NEO 3. Pathword and Dalacom
In Kazakhstan operators providing mobile services of GSM and CDMA standards. Such companies Beeline, NEO use GSM standard. Pathword and Dalacom use CDMA standard. SO that, because CDMA is not so much developed in Kazakhstan, it is supposed that the main direct competitors would be chosen from GSM standard category.
SWOT analysis
Strengths
1. Strong position in Kazakhstan market. 2. Strong Brand awareness 3. Strong social and corporate responsibility 4. New technologies
Weaknesses
1. High tariffs 2. Low interaction between competitors.
Opportunities
1. High demand level 2. Growth of population income 3. Preferences of new technologies
Threats
1. High competition (competitors reduces prices) 2. The possibility of market saturation
Kcell company was established in "GSM Kazakhstan" company was established in 1998 and since February 1999 it began rendering services of cellular communication under the trade mark Kcell. Activ brand was launched in September the same year. Owning to the well-thought out marketing strategy long since the beginning of the year 2000 the Company 's subscriber data base has exceeded 100,000 people and doubled by the end of the same year. Today the Company 's subscriber data base exceeds 7 million customers. (Kcell, 2010)
Product description
Activ have 19 main types of tariffs which covers different segments of the market. This type are divided in order to satisfy client needs by demographic and geographic context, for example, there are tariffs which are oriented “For heavy SMS users”, “For young people and students”, “For mobile internet users”, “For subscribers with hearing impairments”, “Regional tariff plans”, “For active talks within Activ /Kcell/ Vegaline network”, “For calls to any destination in Kazakhstan”.
Competitive analysis
The main competitors of Activ and Kcell in today reality in Kazakhstan market are: 1. Beeline 2. NEO 3. Pathword and Dalacom
In Kazakhstan operators providing mobile services of GSM and CDMA standards. Such companies Beeline, NEO use GSM standard. Pathword and Dalacom use CDMA standard. SO that, because CDMA is not so much developed in Kazakhstan, it is supposed that the main direct competitors would be chosen from GSM standard category.
SWOT analysis
Strengths
1. Strong position in Kazakhstan market. 2. Strong Brand awareness 3. Strong social and corporate responsibility 4. New technologies
Weaknesses
1. High tariffs 2. Low interaction between competitors.
Opportunities
1. High demand level 2. Growth of population income 3. Preferences of new technologies
Threats
1. High competition (competitors reduces prices) 2. The possibility of market saturation
References: KCELL (2010), About Company http://www.kcell.kz/en/?l=about [accessed 05 March 2011]. Activ (2011), Tariffs http://activ.kz/en/?l=tariffs [accessed 05 March 2011]. Jobber, D. (2010) Principles and Practice of Marketing. 6th Ed. London: The McGrow-Hill Companies.