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A Few Lessons on Price War

Filed in archive Mobile Technologies , Mobile Technologies by leo on September 07, 2007

The price war that has been going on in Japan resulted to loss of 22,900 subscribers for NTT DoCoMo, the no. 1 player. Conversely, it's a gain for the no. 3, Softbank.

Expect to draw more blood in the coming months as NTT is all set for a showdown of size and leverage. Softbank is eagerly waiting and no. 2 player KKDI is not a sitting duck as well.

Japan is a preview of what will happen to the US mobile market. We have the big 3 i.e. AT&T, Sprint, and Verizon Wireless on one side and the threatening challengers on the other side like T-Mobile.

So, what can we learn about this seemingly an endless debacle?

1st Lesson: There is NO winner in this game of attrition. Of course, that's on the perspective of mobile companies. Conversely, it is a major victory for mobile subscribers.

2nd Lesson: Since there is no winner in this game, why play this game? Pick your own battle and focus on EXCELLENT CUSTOMER SERVICE. We all know this industry sucks at this angle, making it at par with fast food and airline industries. So far, no on holds the gold medal in this category. First mover advantage, remember???

I found an interesting slide you might want to use in case you're planning to engage in a price war soon.



Thanks to Wireless Watch Japan


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Tags: price+war  mobile+technology  softbank  ntt+docomo  kddi  500+Server+closed+connection+without+sending+an 

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