Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 10.1999
Length: 9 pages
Data source: Published sources
Notes: To maximise their effectiveness, colour items should be printed in colour.
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Abstract
This is the last of a two-case series (399-147-1 and 399-148-1). Mobilcom is a young German firm which was created in 1991 and has been successful as a Mobile telephone service reseller. The (A) case takes place just before the de-regulation of January 1998 and aims at discussing whether and how Mobilcom should enter the German fixed-line voice telephony market. The (A) case emphasises the opportunities as a new entrant provided by de-regulation, given the huge value captured by Deutsche Telekom as a monopolist. The (B) case describes the entry of Mobilcom and how the industry turns into a price and capacity war. The Mobilcom case illustrates the strategic challenges of new-comers in a newly de-regulated industry. It shows how the challenge of moving from a value capture strategy to a sustainable competitive advantage. This case can be positioned as a transition between ''industrial analysis'' and ''competitive advantage''. This case contains colour exhibits.
About
Abstract
This is the last of a two-case series (399-147-1 and 399-148-1). Mobilcom is a young German firm which was created in 1991 and has been successful as a Mobile telephone service reseller. The (A) case takes place just before the de-regulation of January 1998 and aims at discussing whether and how Mobilcom should enter the German fixed-line voice telephony market. The (A) case emphasises the opportunities as a new entrant provided by de-regulation, given the huge value captured by Deutsche Telekom as a monopolist. The (B) case describes the entry of Mobilcom and how the industry turns into a price and capacity war. The Mobilcom case illustrates the strategic challenges of new-comers in a newly de-regulated industry. It shows how the challenge of moving from a value capture strategy to a sustainable competitive advantage. This case can be positioned as a transition between ''industrial analysis'' and ''competitive advantage''. This case contains colour exhibits.