France telecom

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A case study on France Telecommunications expansion into Canadian markets.

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France telecom

  1. 1. FRANCE TELECOMCanadian Markets
  2. 2. Contents• Wireless Telephone Services in Quebec• Prices of Quebec Telephone Services• Elasticity of Demand for Wireless Telephone Services• Making Decisions about Pricing for France Telecom• Competitive Environment in Wireless Telephone Sector• Gaining Market Share through Pricing Strategies
  3. 3. Agenda• Environmental Scan• Competitive Analysis• Elasticity of Demand• Pricing Recommendations
  4. 4. ENVIRONMENTAL SCANSWOT | PEST
  5. 5. *www.orange.com/wholesalesolutions.homeStrengths• European market leader• Network infrastructure• Focused research and development strategies• Diverse geographical portfolio with strong mobile telecommunications operations
  6. 6. *www.orange.com/wholesalesolutions.homeWeaknesses• Labor crisis• Concentrated revenue from France• No presence in emerging markets
  7. 7. *2010 International KPMG comparative study on business location www.orange.com/wholesalesolutions.homeOpportunitiesPolitical • Low CRTC presence • Government stimulation • Industry Growth • Industry ConsolidationEconomic • 5.8% lower operating costs in QP* • Quebec is maintaining economic growth at 2%Social • 7.4% increase in subscribers (2010) • 30 M. customers expected by 2015Technology • 3G and 4G networks • Real-time transactions • Multimedia messaging
  8. 8. *www.orange.com/wholesalesolutions.homeThreatsPolitical • Government Intervention • Big 3 lobbying for entrant restrictionEconomic • Average disposable income in Quebec lower than national • Fragile EU economy (slowdown)Social • Safety •Technology • Fast-paced industry • Updated networks • Coverage areas, drop-calls
  9. 9. COMPETITIVE ANALYSISLeading Competitor AnalysisService vs. Price AnalysisMarket Share & Demand Analysis
  10. 10. Major Competitors• Rogers Wireless• TELUS Mobility• Bell Mobility • Aliant Mobility • Sask Tel Mobility • MTS Mobility
  11. 11. *http://www.investquebec.com/en/index.aspx?page=512Bell Mobility• World leader in the communications field• Landline and wireless telephone networks• IP networks and solutions• E-commerce• Systems integration• Directory assistance• Satellite transmission network• High-speed Internet access• Web site hosting• Direct satellite broadcasting *www.bell.ca/Mobility
  12. 12. *http://www.investquebec.com/en/index.aspx?page=512Rogers Wireless• Leading Canadian wireless communications provider• Wireless, GSM/GPRS and analog networks• Serves 7 million+ subscribers• Covers 93% of Canadas population•. *www.rogers.com/web/link/wireless
  13. 13. *http://www.investquebec.com/en/index.aspx?page=512TELUS Mobility• Major national leader in telecommunications industry• Internet Protocol (IP) • Stands apart with next-generation network *www.telusmobility.com
  14. 14. Voice PlansCompetitor Plan Differences Price ($) 250 mins Free from 9 – 7 40.00 ∞ SMS or MY5 0.45/minute Activation Fee; 35 150 mins Free after 6 42.75 ∞ Texting or MY5 0.45/minute Activation Fee; 30 250 mins *Free after 9 (1yr) 40.00 ∞ SMS or MY5 *Free after 6 (2yr) 0.40/minute Voicemail Activation Fee; 35
  15. 15. Voice & Data PlansCompetitor Plan Differences Price ($) 200 mins Free from 9 – 7 50.00 500 MB 0.05/MB ∞ SMS or MY5 0.45/minute Activation Fee; 35 200 mins Free after 6 52.75 500 MB 0.05/MB ∞ Texting or MY5 0.45/minute Activation Fee; 30 200 mins *Free after 9 (1yr) 50.00 *Free after 6 (2yr) 500 MB 0.05/MB ∞ SMS or MY5 0.40/minute Voicemail Activation Fee; 35
  16. 16. Share PlansCompetitor Plan Differences Price ($) 50 mins Free from 7 - 9 20 /member 400-600 mins Unlimited Users 105 - 125 1 GB Data Free after 6 - - -
  17. 17. Pay-as-you-Go PlansCompetitor Plan Differences Price ($) $15 start-up credit No Monthly Rate 0.30/ Admin 0.30/Min 0.20/Text $10 Activation Voicemail 0.75/Mth. (Admin) Bonus 20% Auto Save 0.40/Min 0.01/Min (WE/8-8) UNLT. WE/9-7 1/day 0.20/Min 0.15/text 3/MB
  18. 18. *http://www.digitalhome.ca/2011/04/canada-ends-2010-with-24-5-million-wireless-telephone-subscribersMarket Share Wireless Telecom Market Share By Subscribers (2010) 0% 2% 2% 1% Rogers 36% Bell 29% Telus Videotron Sasktel Mobility* MTS Mobility* Wind Mobility* 30% *Leaches of Bell
  19. 19. PRICE ELASTICITYDemand
  20. 20. *http://www.digitalhome.ca/2011/04/canada-ends-2010-with-24-5-million-wireless-telephone-subscribers/Demand Subscribers Growth (in millions) (2010) (2009-2010) 8.98 466 000 7.24 408 746 6.97 447 000
  21. 21. *http://www.investquebec.com/en/index.aspx?page=512Demand• Leading Canadian wireless communications provider• Wireless, GSM/GPRS and analog networks• Serves 7 million+ subscribers• Covers 93% of Canadas population
  22. 22. Demand Elasticity *Data obtained from an original survey

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