1. Cellular phone companies are pursuing developing markets so aggressively because developed markets were already saturated. According to estimates by Ericsson, almost two billion new subscribers are projected to start using mobile phones in the next five years, and 80% of them live in developing markets. Besides India, cellular phone companies could pursue other most populous developing markets such as China, Indonesia, Brazil, Pakistan, Bangladesh, Nigeria, Russia, Mexico, Philippines, Vietnam and Egypt. This strategy makes sense as developing markets are where the majority of potential customers located.
2. The main objective of Mr. Price’s overall strategy is to gain market share in a low profit margin environment by extremely lowering costs. He needs to follow this strategy because the profit that can be made from each potential customer in this untapped market is very low due to their low living standard
3. One of the challenges faced by wireless phone providers in India is they need to have more towers to operate as effective frequency is reserved for the military. The other challenges are the country’s extreme heat and frequent power outages that require them to have cooling and backup systems. Another challenge that I would expect to be an issue but not discussed in the article is the potential of earthquake in the country. This means they need to build towers that can stand for earthquake otherwise it may damage all their infrastructure. All these challenges make them operate more expensively and drive up costs.
4. I would recommend free trial service and let the subscribers experience how cellular phones bring convenience, improve and change their lives and how their little investments pay off. Once the subscribers realize the adva ...