Waw Telecommunications SA 2020

アブストラクト

Waw Telecommunications was struggling to generate profit. This enterprise turnaround case is a good learning tool that will teach students how to use the 5P’s of marketing framework to implement a viable marketing strategy. The 5P’s of marketing mix will be an opportunity for the students to evaluate each portion of the framework to see what Waw was doing and what Waw should do in the future to attract customers without losing profit. In fact, by looking deeper into Waw’s customer segmentation, the students will find solutions for improving the products and increase sales. Most students will think that before 2019 the real issue of this case were the marketing strategy. However, by carrying out the customer lifetime value calculation, the students discover that Waw was about to go bankrupt if the changes in regulations, thanks to the partnership between LITEYCA and ADIE, and Mr. Kane’s lobbying and the World Bank would transform the entire market. Moreover, when calculating the customer lifetime value, the student will learn how to determine the profit margin per customer using the yearly revenue per user and the yearly variable cost per user. It will demonstrate to the student how to use the customer lifetime value to calculate the profitability of a business, to assess the customer lifespan using the churn rate, and how to calculate the customer acquisition cost. This will help the students know where to cut cost or increase price in order to generate more profit. In this case the protagonist was navigating in a transitioning industry in terms of changes in regulations. The company was also a client of its competitors which gave it much less competitive advantage. Therefore, the students will also see in this case how important it is to thoroughly analyze all the barriers of entry before entering a market. The students will learn to calculate the return of investment (ROI) and generate conclusions from it. This case would also be a good case to study in industrial organization as it deals with a quasi-monopolistic market with predatory pricing, market power and vertically related markets. The students can also discover entrepreneurship with it.

詳細情報