Question

Asian-based telecom operator recently announced that it was launching Virgin Mobile as a new telecom brand within the country. It would operate in conjunction with Etisalat and Du. Assuming the trend continues, and the government opens the market for private and foreign players. You are required to – a. Apply your understanding and concepts from microeconomics, to investigate and summarize the major characteristics of the emerging market form in the telecom industry. b. Describe and analyze the pricing policies that you would expect to find in this industry of telecom.

 

Answer 1

So this answer will be only my words and ideas but yours could be much better .

So telecom industry could be an oligopoly in Asia as telecom industry is open to private and foreign investors. Now I said this as oligopoly because telecom is a big industry wherein larger number of companies are producing slightly different products.

Emerging markets of telecom industry has great scope for those who are ablr to provide trustable, good quality products at reasonable prices. Its more important to provide after sale service in the telecom sector as once the sale is done it does not result end of job for the industry but it is where the work starts as its more important for the customer to be aligned with the company in the long run which shows great performance of the telecom industry. Emerging markets of telecom is resulting in more competition among the industry which results in better quality and low cost to be the features most essential for the sales of the services.

To summarise this market which is newly launched may have a higher scope of gaining succes in tgis sector because according to the question not many companies have come to operate in this sector. Hence first come first basis would result in better opportunity for them to provide there services to a large number via following the good advertisement, marketing etc.

Now pricing strategy to promote the telecom industry could be advertisement , marketing and also providing free depending on the service which could be provided as a feee trial.Now thos is just the path of letting people realise their demand and helping them to fullfill that demand by providing them a solution to the problem.

Also cost should be considered while pricing but only after the product is able to satisfy the customer needs with there potential services at the prices which they could afford to pay. Its said that the services should be provided in a way depending on the consumer behaviour as then it would operate in the market.Hence after observing people how services could be sold has to decided which further would include the cost of providing them.

As I said I assume them to first one to explore this opportunity so it would be great of they are able to reach the largest audience in no time and such way could eventuality result in less competition faced from the new comers Will also provide them time to evolve with new technology time to time with there customer trust on them being constant.