Two Degree Mobile case study - Free Essay Example

Sample details Pages: 7 Words: 2062 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? EXECUTIVE SUMMARY Two degree mobile company is New Zealand s newest mobile network company. It launched in 2009. It is a private telecommunication industry. Don’t waste time! Our writers will create an original "Two Degree Mobile case study" essay for you Create order It establishes branches in various places but headquarter in Auckland. The market is highly concentrated with two large mobile network operators Vodafone and Telecom with a combined market share of approximately 90% of mobile subscribers and a recent new entrant Two Degrees with approximately 10% of subscribers. Market concentration is even higher if market shares are estimated by revenue levels rather than by subscriber numbers. The Commerce Commission has expressed a number of concerns relating to market performance à ¢Ã¢â€š ¬Ã¢â‚¬Å" especially in relation to the high level of prices and low volume of mobile voice calls; and the level of on-net discounts and traffic for voice and SMS services. On the basis of its belief that the combination of on-net pricing and high mobile termination rates creates barrier that restricts the ability of small network operators to compete with larger Mons, the Commerce Commission has introduced measures to monitor on-net discounting and traffic patterns. It has also determined that the price of the mobile termination access service should decrease towards its estimate of the underlying cost of providing the service. While Two Degrees is playing an important role in promoting competition in the New Zealand mobile market, we find that it will continue to face a number of challenges as it seeks to compete more effectively in the future. In particular, we find that: It is still, effectively, a new entrant in the New Zealand mobile market as it has deployed its own network in only some parts of the country, and is still seeking to roll-out its network in new areas. Further, it is still seeking to upgrade its network to match the network functionality of the existing Mons, and has yet to enter the large business and government market segments. Two Degrees is yet to turn over an annual operating profit despite acquiring almost 10% of market subscribers, which implies that it may not have yet reached minimum efficient scale. Overall mobile industry revenue growth rates are presently flat, with declining voice revenues being roughly matched by increases in SMS and data revenues. Prospects for rapid revenue growth are also limited given Two Degrees has entered the New Zealand mobile market during a mature phase of its development, with mobile penetration levels already in excess of 100%. For so long as Two Degrees has a significantly lower market share of mobile subscribers, it will always be vulnerable to the risk of anti-competitive on-net pricing offers being launched by its rivals in a way that could limit its ability to attract new customers. While Two Degrees continues to have its own network only deployed in major population centres in New Zealand; it will always be dependent on its rivals to provide nationwide network coverage via the acquisition of a national roaming service that is not, at present, subject to access price regulation. Question 1: Explain the role strategic marketing occupies in organization. Your answer must address how planning, decision making, selecting and pursuing marketing opportunities achieve sustainable competitive advantage. Strategic marketing: Marketing strategyis the goal of increasing sales and achieving a sustainablecompetitive advantage.Marketing strategy of 2 degrees includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives. Planning: 2 degrees use the planning function for achievement of its goal. 2 degrees starts the planning with situation of current operation of an organization and identifies what needs to be improving for next year. 2 degrees also involves the result which they want to achieve and determine the process step by step. Decision making:- In an organization after planning decision making is done. First the manager make plan and then make decision on that plan to achieve goods of organization. After planning the manager takes the main decision and starts work step by step and then achieve the goal of organization. Selecting marketing opportunities to achieve sustainable competitive advantage: To achieve the advantages, the organization has to select the different marketing opportunities. After get the advantages of competitive part, the organization can achieve the goals. There are many competitive of 2 degrees like Vodafone, Telecom, Skinny mobiles and many more so 2 degree use this function for achieving the competitive advantage. Question 2: Explain the term marketing strategy in terms of how such a strategy helps a business unit achieve its marketing objectives. Product: Companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s product which company planning to market is with complete for new generation smart phone which have latest and new features which no other company provide. 2 degrees provide many facilities and plans for latest phones like it gives high speed internet and cheaper plans like in $29; customers get 300 minutes, 1 GB internet data and unlimited texts. So by these types of products, most of the customers are attracted by it and use 2 degrees. Promotion: This promotion can be achieved by powerful advertisement on media channels and by advertising the products on Internet too which acts a powerful advertisement tool nowadays. Secondly the advertisement can be carried out in magazines and newspaper. 2 degrees uses banners and posters as a promotion to attract the customers. Price: For this strategy, companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s main targets are all the people who uses the brand new product in smart phone world and college going students because they mostly uses internet so 2 degrees set the price by which they are satisfied. Company also give many types of plans like low roaming rates, low rates on international calling and so on. Place: If company segment the market clearly, then only we come to know potential place, while considering targeted customer living territory and distribution facilities. 2 degrees most of the sales are depending on the place strategy. 2 degrees arrange its most of branches in the city area or that place where population is high so they get more profit Question 3: Explain, identify and describe the six stages of strategic marketing planning process. Establish ability to work: In this point, manager has to make different teams for divide the work and then allocate all the resources and clarify all the task of plan. Also clarify the roles for different groups or team and make the situation to work. By all these, a person can establish the ability to work and start planning process. 2 degrees make the teams and the main in the team is established the work ability in the team. By this all the team members are take interest in their work so the manager established the ability in many ways like to give promotion, to give best worker price by this all the workers have ability to work hard. Analyse problem: For analyse problem, First thing is to collect all the information about problem and assess the importance of problem and also effects on society. Then try to get feedback from stakeholders. Develop alternate solution: After finding problem, first is to check the team staffing and collect alternative information. Than search for possible situation and after that define and describe the solution for the solving of problem. Evaluate alternative solution: For evaluation, First thing is to assess problem solving potential and derive potential efficiency. Moreover, estimate the expenditures and get cost efficiency also. Another thing is to collect adjusted efficiency adjusted efficiency and assess the acceptance of political parties or department. Set planning priorities: For solving the planning priorities, First thing is to estimate the expenditure of planning and then assess planning urgency and synergies and also derive planning priority by all these elements, planning priorities are set. ThePriority Setting Process Checklist(PSPC) provides a systematic approach to planning for priority setting. This tool is particularly useful when decision makers are allocating finite resources among multiple competing priorities, as ithelps users to identify necessary elements before the priority-setting process begins. Determine next step: For this step, first check completeness of decision draft and also assess recommendation for the planning process and at last make decision. Question 4: Explain the links between strategic marketing and corporate strategy. Mission statement: Mission statement is a statement of an organization or a company. The mission statement should guide the action of the organization and also give guidelines for decision making. It provides the framework for achieving the goal of a company. According to Bart, the commercial mission statement consists of three essential components: Key market: For 2 degrees all the people are targeted customers. Contribution: 2 degrees provide many types of services to their customers like to choose their own numbers for their card, online top up, high speed internet or 4G speed internets, cheaper plans, returns and refund policies, to solve customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s problems immediately and many more. It is a contribution of 2 degrees so customers are attracted by it and trust on it. Distinction: There are many services of 2 degrees but some are unique or most of the customers are like some of the services like to choose own numbers, return and refund, customers get the immediate solution of their problems etc. So this is distinction of two degrees and ità ¢Ã¢â€š ¬Ã¢â€ž ¢s all about why most of the people are using 2 degrees. Organizational structure: Anorganizational structuredefines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizationsare a variant ofclustered entities. Every organization should concern about its structure. The structure clarifies relationship, roles and responsibilities. There are 5 main points in this structure: Job title. Specific task required. Supervisor and Sub ordinates. Units of department. Minimum skills for job. Corporate responsibilities and ethics: Corporate socialis a form ofcorporateself-regulationintegrated into abusiness model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and internationalnorms. In some models, a firms implementation of CSR goes beyond compliance and engages in actions that appear to further some social good, beyond the interests of the firm and that which is required by law. It is one type of the responsibility of 2 degrees to follow it for knowing of what is right and what right things to achieve the goal in the short time because it involves learning what is wrong and what is right and then doing right things to achieve the organizational goal. Ethics teach different rules of organization to the staff in very easy and simple way. Dynamic strategy: The word à ¢Ã¢â€š ¬Ã‹Å"dynamicsà ¢Ã¢â€š ¬Ã¢â€ž ¢ appears frequently in discussions and writing about strategy, and is used in two distinct, though equally important senses. Thedynamics of strategy and performanceconcerns the à ¢Ã¢â€š ¬Ã‹Å"contentà ¢Ã¢â€š ¬Ã¢â€ž ¢ of strategy à ¢Ã¢â€š ¬Ã¢â‚¬Å" initiatives, choices, policies and decisions adopted in an attempt to improve performance, and the results that arise from these managerial behaviours. By using of thedynamic model of the strategy process, 2 degreesmakes a way of understanding how strategic actions occur. It recognizes thatstrategic planningis dynamic, that is, strategy-making involves a complex pattern of actions and reactions. It is partially planned and partially unplanned. A literature search shows the first of these senses to be both the earliest and most widely used meaning of à ¢Ã¢â€š ¬Ã‹Å"strategy dynamicsà ¢Ã¢â€š ¬Ã¢â€ž ¢, though that is not to diminish the importance of the dynamic view of the strateg y processes. Knowledge management system: 2 degrees uses the knowledge management system because it is the process of developing, sharing and effectively using organizational knowledge. It uses the best knowledge to achieve organizational objectives by using multi-disciplined approach. Knowledge management efforts typically focus on organisationalobjectivessuch as improved performance,competitive advantage,innovation, the sharing of lessons learned, integration andcontinuous improvementof the organisation. KM efforts overlap withorganisational learningand may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging thesharing of knowledge. It is seen as an enabler of organisational learning and a more concrete mechanism than the previous abstract research. It includes courses taught in fields of business administration and management. So thatà ¢Ã¢â€š ¬Ã¢â€ž ¢s why 2 degrees uses the knowledge management system and it is very important for it. Reference: www.google.co.nz www.2degrees.co.nz