Communications & Telecom

Case Study: Leading Asian Telecommunications Company

Situation
A leading Asian Telecommunications company had been acquired by a financial investor with a view towards a five-year track for improvement in the business and a successful “flip” of the 9-figure investment. After the ownership change, and based on a recent series of ineffectual new product initiatives, a decision had been made to retrench the Consumer Business Unit to its traditional wire-line telecommunications core.

Solution
Facing a “one time” structural change in its regulatory environment, and after several quarters of disappointing consumer market results, we were requested to assess the opportunity and the potential for restoring growth in the Consumer Business Unit of this company’s home market.

After an in-country review of the market structure/dynamics, competitive products, pricing, key infrastructure and channel factors, we recommended a substantial realignment of the business unit’s product and channel priorities, with newer “broadband” technologies at the core.

In addition, we proposed a six-part strategic approach that incorporated integrated approaches to branding, market positioning, product portfolio and architecture, and the pricing and channels used, to ensure that the new direction could fully come to life, and not fall victim to the same factors that had sapped earlier new product efforts.

Results

After only a few months of substantially improved Consumer Business Unit performance behind the broadband direction, a strategic buyer, with a prime interest in consumer broadband products, made a pre-emptive bid for the entire company and acquired it. This resulted in a very successful “flip” for our clients after only 18 months, with returns substantially exceeding their “basis for investment” projections.

Contact John Hawkins for more information.