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Mobile operator transformation strategy
- Strategy& was retained by a German mobile operator to help it strengthen its market position and significantly increase its profitability. The operator’s competitive position was being eroded by the increasing competitiveness of other market players, and its growth was limited by the fact that the market was near saturation.
- Strategy& supported the operator in unfolding a rigorous turnaround program to become a mean, low-frills challenger. The firm redesigned the operator’s portfolio in a manner that allowed it to become the price leader across most segments and redesigned its retail business model in a manner that allowed it to decrease subscriber acquisition costs. Strategy& also helped it define a leaner value chain that significantly reduced production costs. Finally, the firm increased the operator’s internal efficiency by migrating it to a simpler organization and by refocusing its internal staff to a customer orientation.
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