ABC Telecom Harvard Case Solution & Analysis

ABC Telecom Case Solution


ABC Telecom is a leading telecommunication company based in New York, U.S. The company was formed and incorporated in January 1999. The company provides telecommunication services to its customers that include traditional 2G, 3G, and modern 4G LTE network. The company is listed on the New York Stock Exchange (NYSE). The company provides services to the customers as well as it provides business solutions to the corporate customers. It provides seamless uninterrupted wireless data connections to the businesses.

Richard D’souza is the Chief Executive of the company. He has helped the company to become a market leader and under his leadership the company grows at high pace. The company has captured 45% market share in the telecom industry during past five years. Currently, the company has about 165,000 employees that are working towards organization goals. ABC Telecom has been providing services in 130 countries and 2500 cities around the globe.

The competition in the telecom industry has become extremely high. With the introduction of new technologies, which are available widely and at lesser cost, it has provided other companies an opportunity to acquire such technology and compete with the developed companies. Diversification and innovation are two key factors in this industry. Customers value the services based on the diversified and value-added services they will get, since most of the company provides same services. Innovation is another key factor. The industry demands latest product on every day basis. Competitors compete on innovative data bundles and packages with value-added services and competitive rates. Thus, the industry is highly volatile and growth is totally based on company’s ability to compete effectively.

 Problem Statement

ABC Telecom has been operating efficiently since its inception. It has organized itself as growth oriented company. The company under the leadership of Richard had acquired the growth strategy and had made several acquisitions which provide the company opportunity to compete effectively in the industry and expands geographically. The company adopted new and latest technology and had been the pioneer in introducing and incorporating the latest technological development in its services.

The company was a market leader for a long time, but in the recent few years it has been slowed down and has been facing major competition from its rival firms. The emergence of new telecommunication firms has also fragmented the telecom market which has affected the market share of ABC Telecom. Now the company has to make certain key decision and has to plan future strategies to regain its leading position in the market. It is considering three alternative options which might help the company to organize itself and construct its path towards telecom leadership. The three strategies the company is considering are:

•         The company, using information provided by its marketing department, is considering some new identified emerging markets where there is opportunity to explore and offer services and solidifies the competitive position through increasing market share.

•         The company is contemplating to offer new value added services associated with its services. It is also considering offering some independent services, new services such as cloud services.

•         The third alternative that the company might adopt is the combination of both strategy; that is introducing new value added services and expanding towards new emerging markets.

While considering the best option to be used for gaining the leadership position, company has to evaluate the factors affecting its business. It also has to consider its strength and weaknesses in the industry and what should be the best way in pursuing the selected alternative................

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