Background: Struggling to differentiate from the competition
Matt Johnson is frustrated by his company’s loss in market share over the past twelve months. For nearly a decade, Matt has worked for Wired Telecom, a large telecom company that has been in business for nearly 30 years. Since Matt came on board as a portfolio manager, he enjoyed many years’ managing consumer products and services that attracted new customers and spurred existing customers to renew their contracts. In fact, during the time Matt has worked at Wired Telecom, the company has been the market leader.
However, new providers seem to be entering the market at every turn. And their lower rates on voice/data bundles has slowly but constantly eroded Wired Telecom’s market share. Wired Telecom is in a sticky position – it has to stop share loss, but can’t match its competitors’ tariffs and still turn a profit.
Because Wired Telecom is selling a lot of smartphones along with its voice/data contracts, it is focused on offering exclusive services instead of matching its low-cost competitors. The company has, at the moment, one thing going for it: Matt’s brainchild, an optional service that provides customers with unlimited high-speed data during weekends and after 17:00 on weeknights. This service, paired with the high speed that only the Wired Telecom network can provide, has managed to slow share loss in the high-profit smartphone market since its launch two years earlier…
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