Task 4 – Client

Recommendation

Product Name – Forever By Company X

EXECUTIVE SUMMARY
 Situation & Background
• One of the local Telecom company named X is facing the declining in the profit values
for last many years. The main reason behind the declining of profit values is introduction
new market in leasing of the handset. In this handset leasing, the new phones are rented to
the targeted customers on the monthly fee charges. Also some telecom companies are
providing low priced sim mobile plans along with that. This helps the customers to switch
to new technology within a year. It also helps the telecom companies to have less
inventory holding cost with help them in financial debt
• Situation:
So, the situation is that, Company X is in confusion whether to continue to serve the
customer or close this due to high competition and they felt that it is no longer attractive
industry. To continue to serve, we were asked to find the new ways to stand in the industry
and increase the profit and market share.
Problems

• With such dynamic environment and innovation, A new technology is

introducing on very next day. Thus, consumer will continue to buy
these latest updated technology phones and it will be sustainable
enough.
• Since, now competitors are not only leasing the mobile phones but also
providing the plans along with that. This causes the decrease in the
revenue of Company X.
• Switching cost generated by Company X is very low.
• Market has low entry barrier, causes increase in competition
• Company X is not able to provide tough competition to their rivals.
Hypothesis

Null Hypothesis:
BCG team should drop exploring the new ways for their client
Company X since it is no longer an attractive industry.

Alternate Hypothesis:
BCG team should continuing finding out the new ways since the
industry is quiet attractive and finding out new ways will lead their
client to generate increasing amount of profit.
Solution and Impact

• Company X needs to provide the additional benefits with the recharges to attract the
consumers.
• They need to create a brand image in the mind of the consumers either by doing some
social works.
• Also, they can create high switching cost by providing them product quality and
additional benefits being a premium member of the Company.

• Impact:
By working on these solution, they are in the position to create a image in the mind of
customers and with high switching cost they will be in position to hold their customer
and hence generate increase revenues which ultimately helps in increase in profit