Qatar is on the verge of market entry by Vodafone, one of the world’s leading mobile players. Qtel, the incumbent monopoly, will face a formidable challenger in Vodafone. Aglobal presence and vast product and services innovation experience across developed and emerging markets are just some of the advantages Vodafone can leverage in its market entry strategy. Vodafone has the capacity to deliver targeted value propositions to the very diverse customer segments found in Qatar, from the labour force to the local large enterprises and branches of multinational firms.
Given the near saturated mobile market and the well-serviced fixed-line arena, Vodafone will likely target the incumbent’s existing customer base to capture market share. The challenge for Qtel is to retain the high value segments, thereby allowing the inevitable churn to be within the lower segments. The enterprise segment is one of the key contributors to revenue and profitability for Qtel’s domestic operations. In any customer retention effort by Qtel, these customers should rank at the very top of the priority list.
Should Qtel be worried about churn in the enterprise segment?
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