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Background:
Omnitel entered the Italian mobile phone service market after obtaining a GSM license in 1994. ...
- It avoided getting into a price war with the Telecom Italia Mobile (TIM). ...
Omnitel had a market share of 4% after 6 months of its launch. Although it avoided going into a price war with TIM, it could not perform to expectations because
- Omnitel’s brand equity of customer service failed to materialize into increased customer base.
- TIM had a monopoly and had become more aggressive in its marketing after Omnitel’s entry. ... 40 billion
8) Segmentation & Pricing innovation
9) Strategic locations & create “incredible demand” for Omnitel. ...
In the long run, the strategy seems too risky as
- Omnitel didn’t have the financial strength to sustain a price war, as seems likely by the elimination of monthly fees. ... It would most likely follow suit by scrapping monthly fees and aggressively increasing its marketing, as it had done before on the entry of Omnitel.
Approximate Word count = 726
Approximate Pages = 2.9
(250 words per page double spaced)
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