MCI Telecommunication Company
MCI Telecommunication Company Prepared by: Jayaraman Ganesan Section A Course: Marketing II Instructor: Prof. Tapan Panda MCI Telecommunications Corporation is a long distance telecommunication and telephone service provider in the Unites States of America. The company that started off in 1963 with gaining the license for provision of long distance telecommunication service between Chicago and St. ... This case analyzes the various stages the company passes through since 1970 when it started its first telecommunication service between Chicago and St. Louis till the 1980s when the company was the fastest growing company in the country. In the course of this growth, the company faced with many environmental changes and constraints that decided the company’s orientation. This case analyzes the transition of MCI from a pure product-orientation to marketing-orientation. The major environmental factors that the company had to adapt to can broadly be categorized under two headings- dynamic regulatory environment and stiff competition from AT&T who held 85% of the long distance traffic. 1970-75 The company was still a very small organization with services along just one route between Chicago and St. ... The only service provided by the company was called the point-to-point private line service. ... Reasons for Capacity Orientation • Need for a minimum of 3000 private lines to break-even • AT&T not willing to provide inter-connection with MCI network Key Selling Point Cost- Lower cost to existing users of long distance services of AT&T was the only proposition of the new service. Strategy The strategy was to focus on the biggest 75 users of private line services, communicate the cost advantage that they would gain by moving to MCI.