Giffgaff Case Study

1581 Words Dec 13th, 2012 7 Pages
Choose ONE of the management processes encountered during the course: Starting, Organising, Planning and Changing. Select a business organisation of your choice and explain how and how well it undertakes your chosen process.

In this essay I am going to explain the concept of intrapreneurship, contemplated within the management process of starting, and I will study its implication to the creation of the mobile operator Giffgaff; the role of the parent company and the innovative nature of Giffgaff will also be examined.

Intrapreneurship, also referred as corporate entrepreneurship, is a key concept in this era of fierce market competition. The start-up philosophy applied to established companies positively promotes change and
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The role of the parent company is vital in the formation and development of the new venture and in its potential success or fail; it must be ready to challenge the way it is doing business, to take risks and to step into the unknown, and Telefonica O2 did it. Gav Thompson spotted a gap in the market for those users who where not attracted by traditional mobile operators, dissatisfied about expensive tariffs, lack of transparency and poor customer service of market leaders within the sector; he identified the opportunity to set up a new business form that, through innovation, would deliver a service characterised by two main principles: being fair, open and transparent; and guarantee price-competitiveness thanks to the absence of call centres, costly advertising or retail channels, keeping the costs low and passing the savings to the customers (Thompson, 2010). This was the first step in the intrapreneurial process; however, ideas have to become commercial solutions introduced into the market. Finding the resources within an established and financially secure company has some advantages compared to lone start-ups: the project was approved by O2 executive board, who recognised its potential value, and Giffgaff received the necessary funding from its parent company having also the option to share O2’s infrastructure to operate, as Hearn (2010), one of Giffgaff 35 employees explained to their community.

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