Mobilink—Pricing under Competition  

Oleh:

Ahmad, Farid ; Haque, Ehsan ul

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Asian Journal Of Management Cases vol. 08 no. 01 (Mar. 2011), page 7–28.
Topik: Pricing; price competition; cellular pricing; pricing services; price bundles; telecom marketing; service industry
Fulltext: Asian Journal of Management Cases-2011-Ahmad-7-28_Ros.pdf (1.5MB)

Isi artikel

Mobilink management needs to come up with a response to the entry of Telenor in the Pakistani cellular phone market. Contrary to Mobilink’s expectations and hopes, Telenor entered the market with a lower, and much simpler, pricing strategy. Mobilink being the dominant player (63 per cent market share) needs to think through its options. As a large player, responding too aggressively to this lower price (by a multinational with deep pockets) could lead to a long-term price war in which Mobilink stands to lose the most. On the other hand, a weak response might send the wrong signals not only to Telenor but also to other entrants in the wing. The managers have a variety of pricing options to choose from. Each of them entails different costs based on expected customer response.

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