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The Upstart Assault

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Submitted By abbasakhtar1965
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THE UPSTART’S ASSAULT – A CASE STUDY The current Market Share of telecommunication segments are as follows –

Market Segment Meridicom Market Share (%) Revenue Share TelZip Market Share (%) Market Leader
Landline 85 70% 5 Meridicom
Broadband 60 25% 0 Meridicom
Mobile 5 5% 25 Unknown

Meridicom’s Strength:

1. Their Market share suggests that Meridicom is Market Leader in Landline and Broadband segment.

2. They gather customer usage data by controlling connection between local exchange and customer’s home and office, which help them in positioning their future offerings / services.

3. Meridicom is the best known brand in the country and the entire Europe. Business customers know and trust their quality.

Meridicom’s Weekness:

1. Their operations are divided in three different divisions. Head of each division is responsible for their performance, but not responsible for Meridicom’s overall performance, therefore, they defend their turf irrespective of the damages to the Meridicom’s interest.

2. Separate billings from same company to same customer for different services, which shows there is no synergy between the three divisions.

3. Broadband is their fastest-growing division with highest margins. TelZip Assault: Telezip is entering into broadband segment and have offered free broadband service to business customers, leaving their current service provider and willing to enter into a long-term contract. TelZip plans to get the revenue from the landline tariff from business customers migrated from Meridicom.

Implications: If customers decide to migrate, Meridicom will not only loose Broadband revenue but also landline revenue and worse the connection between the local exchange and their home / office.

Meridicom’s Response to Consumers:

Meridicom’s response should be multifaceted and not just a reaction to TelZip’s

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