Company X’s profitability has been decreasing as its and market
share has been declining as customers do not find its offering attractive. Handset leasing is an attractive opportunity for CompanyX as it will drive profitability by attracting more customers from a younger demographic of users aged 30 years and below. The handset leasing plan has been adopted by companies like Singtel and has shown to drive profitability and steer above industry average growth rate of 2.3% to 2.5% The target customer for this plan is ‘Young enthusiasts’ looking for ‘low cost-frequent upgrades’.