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Vodafone – New Zealand |
|---|---|
| Segment | Mobile Phones |
| Scenario | Developing a new business model for the mobile phone market that became highly competitive in 1996. Bell South Cellular, faced with a huge drop in market share, and was sold to Vodafone. |
| Challenge | To develop a new business model that enabled Vodafone to overcome the challenge set by Telecom NZ, market leader, without making massive capital investments. |
| Strategy | To find out how customers evaluate coverage and then increment the "perceived coverage", without investing in network expansion. To improve the perceived cost without reducing prices, by launching innovative offers, which were capable of incrementing the perceived value of Vodafone. To adapt internal processes by bringing them more into line with customer expectations. |
| Competitive Advantage | Determination and skill to find out customer needs and values and to adapt the strategy to meet them without needing to reduce prices. Differentiated services and prices. |
| Result | Increase in market share, from 19% in 1997, to 70% in 2002. |