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I don’t know if there’s a chance to build a premium category now, it is unlikely people will buy into it especially now that the market understands the product very well.Maybe they should pursue a diversification strategy as a growth strategy.
To put in context, I once worked in a large corporate firm in Kenya, and their monthly Telkom bill ran into millions of shillings! Once again, another player by the brand name Yu, powered by Essar (it felt very cool brand by the way), entered the market. They also went with the same cost strategy and needless to say they were out of the market in no time.
Yet, they chose the market where the cumulative spending power of a consumer in a month would not average more than a thousand shillings. In a nutshell, we have three players all who pursued the same cost strategy that has failed them miserably.
The problem of fighting someone big in marketing, is the willingness of the big guy to obliterate you.
One of the key arguments against a cost strategy is the fact that the big guy can sell at a loss for a longer period than the small guy, hence forcing you out of the competition.
) blood from 3 miles away and as little as a drop of it in approximately 100 litres of water.
This superior ability enables them to hunt prey in a prolific manner and once within range, nothing but death is left of it.
This was a company with billions in infrastructural resources, problem being they were ageing. Kencell and Zain failed with the exact same strategy that Orange were now about to pull off.
They left the very lucrative corporate market and came to focus on a market that they would virtually have no money!
With existing network of ISDN cables, they would have been the premier provider of internet services in Kenya.
I guess they did not see value in their current customer base.