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Philippines leading wireless services provider, Smart Communications Inc., had enjoyed tremendous success in recent years, securing up to 45% of the market share, targeting mainly the middle and upper income customers. Smart is currently at a cross road where it faces a critical business decision to continue to develop innovations and propositions for their existing customers or use their existing innovations to serve lower income customers. Without a doubt, the middle and upper income customers must be captured first. This will not only enable an organization to gain a foothold of the market but also build up a brand name in the market. What about those at the Bottom 0f the economic Pyramid (BOP)? Is there a profitable market there? Without a doubt, it is a resounding yes to me. Firstly, I see the huge untapped market at the BOP in Philippines, approximately 50% of the population, as seen in Smart Communications Inc.’s situation as an opportunity to generate revenue. That is another 42 million potential customers! Secondly, the forecasted wireless market customer number by 2008 will plateau at 30 million and the estimated addressable market for mobile telephony in Philippines which consists mainly the middle and top income customers have already been targeted. Smart needs to expand its market share and seek growth. Most importantly, Smart must continue to be the first market mover and capture the huge market at the BOP. This will enable them to keep their nearest competitor, Globe Telecom at arm’s length. Though faced with a myriad of problems, I believe that every problem when tackled effectively will turn into strength and subsequently profits. I will attempt to present a strategic framework in which Smart Communications Inc. can possibly undertake to serve the BOP rewardingly and profitably.
First and foremost, Smart recognized that they did not have knowledge...

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