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Telecom Price War
Our client is a mid-sized wireless telecom provider facing aggressive price competition from larger national carriers. Management is concerned about long-term positioning. How would you structure your response?
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📋 Solution:
Telecom Price War
Clarifying Questions:
• Is the objective to defend market share, improve profitability, or reposition the brand?
• Is the pressure national or concentrated in certain regions?
Solution:
I would structure this around positioning choices, economic sustainability, and strategic alternatives.
- Positioning strategy
• Determine whether to compete on price, service quality, or niche segments.
• Identify customer segments most sensitive to price.
• Evaluate brand strength and differentiation levers.
- Economic sustainability
• Assess margin impact of matching competitor pricing.
• Identify structural cost advantages or disadvantages.
• Evaluate long-term viability under sustained pricing pressure.
- Strategic alternatives
• Explore partnerships or MVNO agreements.
• Consider bundling services such as broadband or media.
• Evaluate potential consolidation opportunities.
