Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Authors: M Diallo (Universite de Geneve); Claudia Jonczyk Sedes (GSEM / Executive Programs); Gilbert Probst (GSEM / Executive Programs); V Labovic Python (GSEM / Executive Programs)
Published in: 1999

Abstract

This case describes how de-regulation, coupled with rapid technological change, has led to the emergence of fiercely competitive markets in international fixed line and mobile telephony. Since privatisation, a number of global alliances have been formed, and international joint ventures have appeared on the new markets. The Swiss market was particularly attractive because it has the highest revenue per telephone line in the world, the highest ratio of international traffic to total traffic, and a large number of multi-national businesses and international organisations. The study describes the difficulties encountered by Multilink - a joint venture between the two European giants France Telecom and Deutsche Telekom - in penetrating the closed and traditionalist Swiss market. It outlines the challenges that the company must face in co-ordinating its services and its pricing and distribution, while at the same time creating a brand image and reputation that will attract its target customers: small and medium enterprises (SMEs), small offices/home offices (SOHOs) and high end residuals. It also portrays the competitive situation in which the company must operate. Multilink must contend not only with Swisscom, the powerful former monopoly that still retains 93% share of the market, but also with other new entrants that appeared on the market a year in advance of Multilink. Finally, the study outlines the company''s future plans, such as building a new infrastructure, which will allow it to offer direct access. This will help Multilink to become independent of Swisscom and enhance competitive advantage. Multilink''s final objective is to attain third position amongst the alternative operators on the Swiss market.
Location:
Industry:
Size:
SME (small to medium-sized enterprise)
Other setting(s):
1998-1999

About

Abstract

This case describes how de-regulation, coupled with rapid technological change, has led to the emergence of fiercely competitive markets in international fixed line and mobile telephony. Since privatisation, a number of global alliances have been formed, and international joint ventures have appeared on the new markets. The Swiss market was particularly attractive because it has the highest revenue per telephone line in the world, the highest ratio of international traffic to total traffic, and a large number of multi-national businesses and international organisations. The study describes the difficulties encountered by Multilink - a joint venture between the two European giants France Telecom and Deutsche Telekom - in penetrating the closed and traditionalist Swiss market. It outlines the challenges that the company must face in co-ordinating its services and its pricing and distribution, while at the same time creating a brand image and reputation that will attract its target customers: small and medium enterprises (SMEs), small offices/home offices (SOHOs) and high end residuals. It also portrays the competitive situation in which the company must operate. Multilink must contend not only with Swisscom, the powerful former monopoly that still retains 93% share of the market, but also with other new entrants that appeared on the market a year in advance of Multilink. Finally, the study outlines the company''s future plans, such as building a new infrastructure, which will allow it to offer direct access. This will help Multilink to become independent of Swisscom and enhance competitive advantage. Multilink''s final objective is to attain third position amongst the alternative operators on the Swiss market.

Settings

Location:
Industry:
Size:
SME (small to medium-sized enterprise)
Other setting(s):
1998-1999

Related