Evaluating a Mobile Telecommunications Company Case Solution

The Harvard Business Review published a case study that primarily focuses on Evaluating a Mobile Telecommunications Company. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Evaluating a Mobile Telecommunications Company has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Evaluating a Mobile Telecommunications Company using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Evaluating a Mobile Telecommunications Company faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Evaluating a Mobile Telecommunications Company to ensure that the company is able to respond to all the changes in the macro-environment. This is because Evaluating a Mobile Telecommunications Company cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Evaluating a Mobile Telecommunications Company will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Evaluating a Mobile Telecommunications Company.

• It is important for Evaluating a Mobile Telecommunications Company to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Evaluating a Mobile Telecommunications Company by impacting imports and exports.

Economic

• Evaluating a Mobile Telecommunications Company can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Evaluating a Mobile Telecommunications Company, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Evaluating a Mobile Telecommunications Company with more investment opportunities.

• The flexibility in the labor market allows Evaluating a Mobile Telecommunications Company to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Evaluating a Mobile Telecommunications Company to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Evaluating a Mobile Telecommunications Company to develop and align communication as well as marketing strategies accordingly.

• Evaluating a Mobile Telecommunications Company has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Evaluating a Mobile Telecommunications Company to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Evaluating a Mobile Telecommunications Company should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Evaluating a Mobile Telecommunications Company to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Evaluating a Mobile Telecommunications Company should adopt eco-friendly products to establish better relationships with the stakeholders.

• Evaluating a Mobile Telecommunications Company can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Evaluating a Mobile Telecommunications Company should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Evaluating a Mobile Telecommunications Company as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Evaluating a Mobile Telecommunications Company can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Evaluating a Mobile Telecommunications Company’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Evaluating a Mobile Telecommunications Company.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Evaluating a Mobile Telecommunications Company can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Evaluating a Mobile Telecommunications Company operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Evaluating a Mobile Telecommunications Company operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Evaluating a Mobile Telecommunications Company to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Evaluating a Mobile Telecommunications Company. The company can also switch suppliers for more reasonable pricing.

• Evaluating a Mobile Telecommunications Company can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Evaluating a Mobile Telecommunications Company industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Evaluating a Mobile Telecommunications Company can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Evaluating a Mobile Telecommunications Company can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Evaluating a Mobile Telecommunications Company operates.

• Expensive substitutes are available in the industry of Evaluating a Mobile Telecommunications Company, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Evaluating a Mobile Telecommunications Company operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Evaluating a Mobile Telecommunications Company operates has highly differentiated products, making it difficult for companies to win each other customers.

• Evaluating a Mobile Telecommunications Company can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Evaluating a Mobile Telecommunications Company can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Evaluating a Mobile Telecommunications Company to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Evaluating a Mobile Telecommunications Company has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Evaluating a Mobile Telecommunications Company to have a high level of customer engagement (Rizaldi, 2015).

• Evaluating a Mobile Telecommunications Company has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Evaluating a Mobile Telecommunications Company has a strong brand image in the market.

• A low-cost structure of Evaluating a Mobile Telecommunications Company has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Evaluating a Mobile Telecommunications Company is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Evaluating a Mobile Telecommunications Company has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Evaluating a Mobile Telecommunications Company on its research and development is comparatively less to other competitors of the market.

• Evaluating a Mobile Telecommunications Company uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Evaluating a Mobile Telecommunications Company operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Evaluating a Mobile Telecommunications Company. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Evaluating a Mobile Telecommunications Company can take it as an opportunity to expand its online presence.

• Evaluating a Mobile Telecommunications Company can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Evaluating a Mobile Telecommunications Company can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Evaluating a Mobile Telecommunications Company to expand its operations in multiple countries.

• Evaluating a Mobile Telecommunications Company can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Evaluating a Mobile Telecommunications Company, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Evaluating a Mobile Telecommunications Company to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Evaluating a Mobile Telecommunications Company.

• There has been constant pressure on Evaluating a Mobile Telecommunications Company to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Evaluating a Mobile Telecommunications Company.

VRIO Analysis

Evaluating a Mobile Telecommunications Company uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Evaluating a Mobile Telecommunications Company has a strong brand image and engages in corporate social responsibility.

• Evaluating a Mobile Telecommunications Company has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Evaluating a Mobile Telecommunications Company is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Evaluating a Mobile Telecommunications Company focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Evaluating a Mobile Telecommunications Company has been able to penetrate the market through its ability to raise large funds.

Rare

• Evaluating a Mobile Telecommunications Company operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Evaluating a Mobile Telecommunications Company has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Evaluating a Mobile Telecommunications Company has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Evaluating a Mobile Telecommunications Company is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Evaluating a Mobile Telecommunications Company is its high-quality products. These products have allowed consumers to make repeat purchases.

• Evaluating a Mobile Telecommunications Company operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Evaluating a Mobile Telecommunications Company to attract more customers.

• Evaluating a Mobile Telecommunications Company has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Evaluating a Mobile Telecommunications Company maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Evaluating a Mobile Telecommunications Company to explore more product development opportunities.

• Evaluating a Mobile Telecommunications Company is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Evaluating a Mobile Telecommunications Company that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Evaluating a Mobile Telecommunications Company to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Evaluating a Mobile Telecommunications Company to formulate effective strategies to achieve the company objectives.

Product

• Evaluating a Mobile Telecommunications Company has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Evaluating a Mobile Telecommunications Company to its customers. These distinctive products are not easily available at competitors.

• The products of Evaluating a Mobile Telecommunications Company are of higher quality, and thus, customers pay more prices for these products.

• Evaluating a Mobile Telecommunications Company designs products with traditional designs giving customers more product variety.

• Evaluating a Mobile Telecommunications Company offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Evaluating a Mobile Telecommunications Company to its customers.

Price

• Evaluating a Mobile Telecommunications Company follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Evaluating a Mobile Telecommunications Company for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Evaluating a Mobile Telecommunications Company to its customers.

Place

• Evaluating a Mobile Telecommunications Company uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Evaluating a Mobile Telecommunications Company globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Evaluating a Mobile Telecommunications Company has partnered with delivery service companies to distribute its products effectively to consumers.

• Evaluating a Mobile Telecommunications Company has also adopted an omni-channel distribution system.

Promotion

• Evaluating a Mobile Telecommunications Company uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Evaluating a Mobile Telecommunications Company to increase brand awareness.

• Evaluating a Mobile Telecommunications Company takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Evaluating a Mobile Telecommunications Company also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Evaluating a Mobile Telecommunications Company to attract and retain customers.

Value Chain Analysis

Evaluating a Mobile Telecommunications Company can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Evaluating a Mobile Telecommunications Company’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Evaluating a Mobile Telecommunications Company has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Evaluating a Mobile Telecommunications Company are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Evaluating a Mobile Telecommunications Company has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Evaluating a Mobile Telecommunications Company invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Evaluating a Mobile Telecommunications Company to effectively devise and build sales and marketing activities.

• Evaluating a Mobile Telecommunications Company offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Evaluating a Mobile Telecommunications Company has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Evaluating a Mobile Telecommunications Company has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Evaluating a Mobile Telecommunications Company uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Evaluating a Mobile Telecommunications Company has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Evaluating a Mobile Telecommunications Company are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Evaluating a Mobile Telecommunications Company can increase the capacity of its production so it can reach more of the customers in its existing market.

• Evaluating a Mobile Telecommunications Company can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Evaluating a Mobile Telecommunications Company in marketing and sales activities to increase the chances of successful market penetration.

• Evaluating a Mobile Telecommunications Company can design and develop a content that increases customer engagement within a particular marketplace.

• Evaluating a Mobile Telecommunications Company can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Evaluating a Mobile Telecommunications Company to penetrate the market.

• Evaluating a Mobile Telecommunications Company can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Evaluating a Mobile Telecommunications Company can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Evaluating a Mobile Telecommunications Company to mitigate the risk factors, and to gain customer groups of the market.

• Evaluating a Mobile Telecommunications Company can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Evaluating a Mobile Telecommunications Company to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Evaluating a Mobile Telecommunications Company for growth purposes. This will also take into consideration the cultural differences.

• Evaluating a Mobile Telecommunications Company should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Evaluating a Mobile Telecommunications Company.

• Evaluating a Mobile Telecommunications Company should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Evaluating a Mobile Telecommunications Company should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Evaluating a Mobile Telecommunications Company can come up with new improvements and modifications in the existing products to attract the market.

• Evaluating a Mobile Telecommunications Company should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Evaluating a Mobile Telecommunications Company to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Evaluating a Mobile Telecommunications Company can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Evaluating a Mobile Telecommunications Company can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Evaluating a Mobile Telecommunications Company, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Evaluating a Mobile Telecommunications Company can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Evaluating a Mobile Telecommunications Company should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Evaluating a Mobile Telecommunications Company should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Evaluating a Mobile Telecommunications Company should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Evaluating a Mobile Telecommunications Company is less affected by the new emerging competition in the industry.

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