Omnitel Pronto Italia - 739 Words

Omnitel Pronto Italia Case Analysis Introduction Omnitel is a telecom company based in Italy, which had purchased the GSM license on Dec 1994. In a country where mobile phones are considered as a status symbol, Omnitel focuses on providing superior customer service and therby reducing churn rates. The company has a marketshare of 4% and is capable of giving Telecom Italia Mobile (TIM), the market leader, a close run for their money. The vision of Omnitel is to position cellular phone in a manner akin to wristwatch, which is personal and indispensable. Push Strategy by the monopoly market Leader TIM Vs Pull strategy of the new comer Omnitel: Telecom Italia with a 97% share of the 7.5% market penetration rate in Italy had a sole aim of†¦show more content†¦Beside this Omnitel didn’t subsidize the price of their handset as they were aware of the Italian consumer trend and willingness to pay. With the high quality service Omnitel wanted to develop brand loyalty which furt her helped for achieving greater penetration. This increases the demand among customers directly pushing the dealers to sell their phones without any negotiations. Europe Telecom Market Europe Cellular penetration rates are relatively modest, value for money due to combination of reduced cost of the service and improved quality of service, All cellular operators in Europe have moved to digitization the market is a competitive one, hence customer awareness is high which increases the demand in market. Growth prospects are very positive for this market. Country Name Scandinavia Finland Sweden Norway U.K Italy Penetration Subsidies/DC Churn Rate 20% 20% 23.4% 25% 9.3% 7.5% N Y Y Y Y 12% 20.5% 22% 28% 12.5% Finland has a very interesting data having the lowest churn rate, without any subsidies/dealer commissions and a good penetration rate as compared to the other countries. Finland was the most sophisticated markets in the Europe. Analysis The plan Libero is a very good option for Omnitel to go ahead. Initially with this plan, total average revenue per customer per month is Lit. 90385 is less than when compared to that of TIM’s average revenue per customer per month is Lit. 93412.Show MoreRelatedOmnitel Pronto Italia1116 Words   |  5 PagesOmnitel Pronto Italia 1. What was Omnitel’s advantage when the service was launched in December 1995? Why did the launch not perform to expectations? Omnitel was the first private sector participant in Italian telecommunication market. The company paid $469 million in December 1994 for GSM license and launched its commercial service in December 1995 with network coverage of 40% of Italian territory. The company offered plans similar to its rival Telecom Italia Mobile (TIM)’s with the hopes thatRead MoreOmnitel Pronto Italia1428 Words   |  6 PagesOVERVIEW Omnitel entered the Italian telecommunication market in February 1995. Till then the Italian telecommunication market was dominated by Telecom Italia Mobile which had a monopoly in this market. The rst private company to enter the Italian telecommunication market was Omnitel. This was facilitated by the decision taken by the European Commision (EC) in 1993 that all member states should open their markets and guarantee competition in the telephony market by January 1998. Omnitel had toRead MoreAnalysis Of Omnitel Pronto Italias Greatest Strength1380 Words   |  6 PagesOmnitel Pronto Italia’s greatest strength was its customer service. With sales below expectations, Omnitel Pronto Italia performed extensive market research to identify the needs of its customer segments. Through analysis, a need for a new pricing strategy was evident. From the research, it was determined that consumers viewed the monthly usage fee as a tax and deeply resented it, they did not want to pay an activation fee and only wanted to pay for services used. Through the competitor analysisRead MoreOmnitel Case Study1543 Words   |  7 PagesExecutive Summary Omnitel Pronto Italia (Italy’s second mobile phone service provider) is faced with an opportunity to introduce a new market driven strategy. One problem it faces is in differentiating itself from Telecom Italia Mobile (TIM), a state owned and operated provider who until Omnitel’s entrance into the market had a monopoly over the Italian telecommunications market. The second issue is implementing a pricing strategy and plans that TIM will not view as price cuts, ultimately settingRead More Italy and Analysis Essay examples5270 Words   |  22 Pagesprices to weed out users and offer better bandwidth. I have rated the ISP’s factor an 8 (favorable). This is because of the large number of ISPs. They bring competition, which lowers the prices and encourages use. TELEPHONE LINES Telecom Italia controls the phone lines and currently has very high rates making the cost of surfing the web too high for many Italians, even though, the web subscription rates are cheap. The government is expected to reduce Telecom Italia’s tariffs for long-distance