Essay FREEMOBILE TO CHALLENGE THE FRENCH MOBILE INCUMBENTS

4) Product Differentiation: in order to communicate differentiation of their products to consumers, Big Three spent massively on advertising (advertising/sales ratio: 18.5%). In this regard, also brand extensions have to be considered, because in this way they’re reaching different markets (e.g., healthy-food lovers, with the introduction of fruit in cereals). In order to further differentiate from new entrants, the incumbents used to provide customers “In-Pack Premia” (only one at a time, in order not to be negatively affected one by the other).

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

For the moment, high level of competition between the major telecommunication companies that exists in current market leads to low switching cost for the buyer to change their mobile service provider. Customers are highly price sensitive and easy to switch brand. It also means that customer will not be faithful to Maxis if they find out other brand provides better services than Maxis so they will change brand.

The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies

One month has to look at competition since the early 1990’s, especially since the act 1996 act. The most effective competition has come from technology evolution that enabled multiple platforms with different product-characteristics and economics to compete. They, in turn, then forced each other into cycles of further innovation. When the telecommunications act of 1996 has passed, there were hints of incipient competition in both the long-distance and video-distribution markets as a result of new technology. Local telephony was still essentially a monopoly. Although wireless was thriving, it was seen primarily as a purely mobile service.”

Moreover, the price level will always compete one to another. As a result, there is a strong barrier for other companies to enter the same market. Which ultimately it will only encourage those three companies to continue their dominance of the market share of spreads.

Currently the top providers operate to benefit themselves and not the consumer with high prices and limited features for the money. Consumers have various choices as far as provider, but no company has differentiated themselves to benefit the consumer's pocket.

Vodafone is one of the most important players on the European telecommunications market. However, this does not mean that the company has an easy job at retaining its customers and at increasing its market share. The most important competitors of Vodafone are represented by Orange and Cosmote. The regulations in the business field determine these companies to provide similar products and services, at similar prices. Therefore, it is important that Vodafone focuses on its communications strategy in order to strengthen its position on the market.

carriers, allows for customers to be able to switch and lower their bill as soon as possible without

In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.

     In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,

1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends

In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.

penetration pricing strategy. All indications are that sales will continue to grow. In response to a

Finnish telephone network was never monopolized by the state, granting many licenses for telephone operations to prevent the Russia to seize its national telephone system when Finland was Russian Grand Duchy. After independence, Finland’s attempts to nationalize poorly performing telecom failed due to political resistance, but could stimulate private operators to upgrade their technology to prevent their nationalization. The legacy of communication business left a lot of competitive companies in the sector for development. However despite all the reasons mentioned above, emerging demand for such technology from global market would be the greatest reason why mobile communication industry emerged in Finland and made Finland a world-leading nation in mobile communication.