Westel Case Study

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Tactical problem: Inability to go against the government`s decision to open the 1800Mhz for mobile communication with concession for a third player. Advantage of Vodafone is starting a business year earlier than WESTEL. In addition, WESTEL is not sure about what kind of strategy that Vodafone will use to penetrate into Hungarian market. -S.W.O.T ANALYSIS- -STRENGTHS- Strength: WESTEL has a local partner (Hungarian Post and Telecommunication Company). Strength: In 1990, WESTEL had generated a waiting list of 3000 customers, without any advertising. Many customers had never seen an actual phone. Strength: In 1992, the management decided to lower entry barriers and launched the affordability campaign. Teaming up with a leasing finance company, clients could lease equipment and pay the joining fee. Strength: In 1993, the geographic coverage became more complete, smaller equipment became available, and consumers started to utilize the service up to its full potential. Strength: GSM technology was a major departure from the previous system and the WESTEL had selected Ericsson to build its GSM system. Strength: WESTEL had a strong emphasis on quality and received the ISO 9001 certificate. Later it was dominated and selected for the Hungarian National Quality Prize, and the European Marshall Award. Strength: In a company survey a great part of WESTEL customers was willing to recommend the company to others. Strength: Subscription services provide excellent opportunities to cross-sell, basically providing content or other products to the customers. Further, these services offer to opportunities to upgrade, to brand and loyalty programs. Loyalty programs later have become an important factor in consumer retention. WESTEL has created its loyalty program early on, so it is a advantage for WESTEL. Strength: In May 1996, WESTEL launched its first major promotion bringing down entry barriers to an unprecedented low. During 12 days the company sold more subscriptions than WESTEL 450 in three years.

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