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Situation
Company X is a telecom company that wants raise its value & competitiveness in the industry. Potential solutions:
introduce new product line, handset leasing or “Super Bargain” Plan
Complication
Declining ARPU & market share has driven Company X’s profits down. No value in the current plan according to
the customers
Question
Implementation of handset leasing could increase revenue between 2.3% - 4.3%, customer retention, & Company
X’s competitiveness in their industry. Assuming market response to this will mimic comparable markets.
Answer
Introduction “Super Bargain” Plan with market focus <30 years looking to upgrade more often.