Building Your MVNO: Leverage is essential for value creation An MVNO is no different to any other business and must have a source of (sustainable) competitive advantage if it is to create value for investors. Competitive advantage is achieved by successful MVNOs through effectively leveraging their existing assets to generate customer growth with low customer acquisition costs. It is this leverage that provides the basis for a good business “story.” MVNOs typically seek to leverage the following assets: - Existing customers – it is easier to sell a new service to existing customers than it is to win entirely new customers (e.g. Tesco) - Brand – to be successful the leveraged brand must drive the purchase of mobile service - Distribution – existing channels to market will help reduce the cost of customer acquisition - Content – for some, mobile provides simply another media for the distribution of existing content - Convergence – bundling of multiple communication services is increasingly common and has been shown to increases customer loyalty
Posted on: Sat, 17 Aug 2013 19:20:09 +0000
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