Again, we were given BCPC case to review – the case portrays a decision problem of launching the HIP as a high-speed internet or concentrate on the status quo, while learning from other service providers. Big City Phone Company (BCPC) offers local, long distance and wireless(cellular) telephone services to their subscribers, focused on providing quality customer service to its customers. The company intends to take advantage of the new High-speed internet-access(HIP) technology and launch the product across all regions. HIP is a modem technology that uses existing telephone lines as a three-channel data delivery system to transmit data requiring high bandwidth data to subscriber personal computers. Hence, phone and data services were available along-side each other. BCPC has completed a successful 3-month market test of 25 customers in a particular region only.
The Internet strategy team lead – Chris Berkowitz and his team are aware BCPC has to enter the HIP market. However, the challenges accompanying the successful launch and sustainability of the HIP service has alerted the team to examine the key issues that will influence their stance on the launch of HIP in the big city and also how to channel BCPC’s strengths in relation to the HIP product offering.
Decision Options
- Staff and launch HIP as a high-speed internet access service across its entire service region.
- concentrate on providing HIP as a wholesaler and learn from the mistakes of retail providers of the service.
BCPC is positioned to benefit from both decision alternatives; whether they decide to launch full-scale service or to providing wholesale services to third party provider. The extent of which each option is successful depends on the BCPC’s competitive advantages and how it can be used to capture the opportunities the HIP service presents, limit the extend of damages the weaknesses and threats pose to the launch.
The HIP service is increasingly becoming popular amongst consumers, because it is seemingly six times faster than traditional analog systems and only $10 costlier. Hence, it is an attractive market to enter into, based on demand forecasts. BCPC is a major player in the USD$40 billion wireless market and recently made a successful entry into the USD$106 billion long distance market. With its existing customer base, BCPC is positioned to capture adequate market share, if it chooses to launch on a wide scale to across all regions. However, there are technical risks that accompany the launch of the service, a failure to make a successful launch can mar the entire brand identity of optimum customer satisfaction.
Technical Expertise and Complicated End to End Integration
Due to the technicality of the HIP service installation process and the expertise require to enhance the end-to-end integration of customers devices, BCPC will have to make adequate provision for training its staff since it is an entirely different service from the existing service offerings.
Mandatory Regulatory Requirement to Offer Wholesale Service
BCPC is required to offer/sell their networks available at cost to third party providers (incumbent competitors). This means BCPC is mandatorily required to be a wholesaler provider of HIP service but they may or may not offer the services to customers as a service provider themselves.
Limited and Inadequate Product Testing Coverage
As highlighted in the case, BCPC carried out a successful Testing on 25 customers in a particular region. This is an insufficient number compared to the 10million customers the company intends service after launch. The sample size for the population is not adequate, hence, conclusions made from the study is null and not deem as a key pointer in making decision pertaining to the launch in the Big City.
Customer Satisfaction
BCPC ‘s strategy is a Differentiation Strategy focused on providing superior customer service in the telecommunications market, to strive for “very good’ and “outstanding” ratings and to continually exceed customers’ expectations. This is the bedrock of BCPC’s success and why customers choose to be associated with the brand. If BCPC decide to launch the HIP service at customer level without adequate preparations, it is bound to jeopardize the company existing brand identity- if customers are not optimally satisfied.
Decision Recommendation
The recommendation is to concentrate on providing HIP as a wholesaler and learn from the mistakes of retail providers of the service. #EMBA28
