The Marketing Environment: Delivering Services In Telecommunication Segments Which Are Switching, Transmissions, Mobile, Access, Pabx, Datacom.

2156 words - 9 pages

ContentsIntroduction Page 3 - 4Executive Summary Page 5Orange Company Background Page 6SLEPT Analysis< Page 7 - 8SWOT Analysis< Page 9Competitor Analysis< Page 10 - 11Conclusion< ;Page 12Recommendations & lt Page 12IntroductionDelivering services in telecommunication segments which are switching, transmissions, mobile, access, PABX, Datacom.In year 2001, the total market size of mobile segment was $850 million (source from www.mintel.com) in the UK, which was 80% of the total telecommunications market. We can see that the mobile phone market is the major driver. However, the market has reached saturation, because around 80% of UK households now own a mobile phone. Sales of mobiles phones fell dramatically, it was the reason causing the closure of an estimated 1,000 retail outlets.The mobile network operators focus on customer revenue generation. It means they are now looking not to acquire new customers, but to increase the level of revenue generated by each customer, and to increase their proportion of higher value pay-monthly customers.This report looks at the recent changes in telecommunication market, analysis the environment and competitors, and then gives recommendations to the company.Executive SummaryThe explosive growth of mobile business was mainly due to pre-pay sector. It made the number of mobile phone user reached saturation earlier than expected. Network operators started to remove the pre-pay handsets subsidies, and introduced the better value of pay-monthly tariffs. The numbers of pay-monthly contracts were rising already. The purpose of doing that was to increase the revenue generation on each customer in this saturated market. To do this, network operators now focus on the content and functionality in the provided service. They also relied on the specialist retailers to bring large quantities of high quality customers. Non-specialist retailers need to decide whether they are willing to invest in the staff training and system necessary to sell these new generations of mobile phones.In the mobile phone market, there is a lack of real product innovation over the last year. This problem will be solved, as 2.5G phones will launch to the market in late 2002, which offer users to send pictures and video clips and download music files and games. The difference on the 2.5G is the emphasis on fun and entertainment. The launch of Hutchison 3G in late 2002, which is expected to have a very strong content offering, will provide a major stimulus. Network operators are expecting this new technology to increase customer revenue.Orange plc Company BackgroundThere are two types of network operator in the mobile market. 'Real' network operators who provide UK-wide mobile phone coverage through a network of masts. 'Virtual' network operators who buy airtime and connection from a real mobile network owner and repackage it for specific market segments, for example Virgin Mobile and Value Telecom.Orange plc is one of the big four...

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