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Abstract

This case deals with the strategy adopted by the Internet Service Provider (ISP), Freeserve, to stay ahead of the competition. Freeserve was launched by Dixons, a consumer electronics chain of stores, in 1998. It pioneered a subscription-free Internet service in Europe. The case takes a look at how the ISP worked. It goes on to describe its initial public offering (IPO) and its huge initial success. It then elaborates on the ISP''s operational model, including the various schemes and services it provided, and eventually discusses its downturn. It concludes with a detailed explanation of Freeserve''s acquisition by the French Telecom company, Wanadoo. It provides a note on the revival of Freeserve after its takeover. The case enables students to: (1) understand the working of free Internet Service Providers; (2) examine the pros and cons of providing Internet services; (3) analyse the strategies adopted by a free Internet Service Provider to remain in the top slot, including the different schemes and wide range of services it provided; and (4) discuss the reasons behind the decline of Freeserve and its acquisition by Wanadoo, and the benefits that accrued to each of them from the takeover. The case is aimed at MBA/PGDBA students as part of the general management and strategy curriculum.
Location:
Size:
Large
Other setting(s):
2003

About

Abstract

This case deals with the strategy adopted by the Internet Service Provider (ISP), Freeserve, to stay ahead of the competition. Freeserve was launched by Dixons, a consumer electronics chain of stores, in 1998. It pioneered a subscription-free Internet service in Europe. The case takes a look at how the ISP worked. It goes on to describe its initial public offering (IPO) and its huge initial success. It then elaborates on the ISP''s operational model, including the various schemes and services it provided, and eventually discusses its downturn. It concludes with a detailed explanation of Freeserve''s acquisition by the French Telecom company, Wanadoo. It provides a note on the revival of Freeserve after its takeover. The case enables students to: (1) understand the working of free Internet Service Providers; (2) examine the pros and cons of providing Internet services; (3) analyse the strategies adopted by a free Internet Service Provider to remain in the top slot, including the different schemes and wide range of services it provided; and (4) discuss the reasons behind the decline of Freeserve and its acquisition by Wanadoo, and the benefits that accrued to each of them from the takeover. The case is aimed at MBA/PGDBA students as part of the general management and strategy curriculum.

Settings

Location:
Size:
Large
Other setting(s):
2003

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