Do It Show: Question #2 - Reaction

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Conclusion

Post  Glen Yang on Tue Nov 15, 2011 4:31 am

While some people are now enjoying their wonderful time in Philippines, I’m really appreciate for the opinions of all the attendants, here are some conclusions of how could competitors react:

As the biggest competitor, SKT:
1.Make good use of their big user base, to consolidate the original customers, make it hard to switch (ex.Number portability with discount).
2. Take advantage of their strong finances to make huge investments in marketing. Prove that they have the ability to provide the same or even better 3G services, and get the pie bigger.
3. Cooperate with top handset manufacturer to offer an appealing 3G package.

As other competitors:
1.Provide value-added services, develop their own applications.
2.Offering some specialized services or unique devices.
3.Focus more on global roaming and high speed data service compare to attract business users.

Thanks for your discussion again.
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Re: Do It Show: Question #2 - Reaction

Post  Glen Yang on Tue Nov 15, 2011 2:59 am

rio ohmori wrote:By seeing short video clip uploaded in other thread, KTF's strategy seems to be "rich" company's strategy. (like SHOW cars driving in the city, renovating many shops and so on. Just like few people mentioned, in case of SKT, they can take similar strategy with spending more. Since SKT's subscribers share is 50%, they can work on to retain existing subscribers. Like Aiko mentioned, number portability is very good tip to keep customers. Also, if legally possible, can SKT provide handset in very low price with minimum requirement contract term, such as 1 year?

As the question is "If you were KTF's competitor, " I also thought about LG Telecom. For this company, I believe they have to think differently. I searched for several SHOW TV commercials.

https://www.youtube.com/watch?v=ZOEFkH0zF0w&feature=related
https://www.youtube.com/watch?v=l0j3yh0W_Uc&feature=related
https://www.youtube.com/watch?v=IhwjNWzGylE
https://www.youtube.com/watch?v=C8Kkf8Lm9Hk

Though I can't understand what they are talking about, KTF focused more on video technology except the one that a girl is eating sushi all the time. Global roaming and high speed data service part is not really focused. But I guess those two features are very helpful in business field. So if I were in LG Telecom, I may target not individual but corporation. Perhaps, provide numbers of handsets with special price and rate for business purpose. Of course business user friendly interface, apps, and etc are essential.

Thanks for your comment Smile

I have the same feeling while watching all their CF on youtube yesterday, though they classified their consumer into “latent techie,” “techno stylist,” “technosumer,” “old commoner,” “utilitarian,” and “family-centered” groups, and selected techno stylist and latent techie groups as the target market, they pretty much focused on how convenient the video calling is on their TV commercial, hence to attract business people with the other two 3G features is maybe a good entry point for other competitors.
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Small competitors

Post  Elwin Jongeling on Tue Nov 15, 2011 2:21 am

r99725051 wrote:Many of you talk about the main competitor: SKT, how about try to think other smaller one?
Some other competitors who don't have big market share, much of money, if they still want to compete with KTF, do they have any choice?
I'm interest about your opinions Smile

A company like this would have a much harder time competing against KTF as well as SKT. The best option for a company like this seems to be to recognize that KTF is doing really well with its marketing campaign and leave them alone while trying to nibble off customers from SKT. The small competitor could do this by offering some specialized services or unique devices.
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Re: Do It Show: Question #2 - Reaction

Post  r99725051 on Tue Nov 15, 2011 2:13 am

Many of you talk about the main competitor: SKT, how about try to think other smaller one?
Some other competitors who don't have big market share, much of money, if they still want to compete with KTF, do they have any choice?
I'm interest about your opinions Smile
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Reaction

Post  Elwin Jongeling on Mon Nov 14, 2011 9:14 pm

As KTF's main competitor, SKT, I would first make sure that my current customers will not want to switch to KTF's new SHOW 3G service. To do this, I would include two main focus strategies:

  1. Make it hard for customers to leave SKT service
  2. Offer a similar but better offer compared to KTF

The first strategy could be employed by using long term service contracts, for example of two years long. Also, as I consider retention of my phone number when switching to another carrier a requirement rather than an advantage, SKT could use the full extent of the law when KTF asks for a phone number transfer. I am not familiar with Korean law, but I am sure SKT could charge a fee and take a long time to actually transfer the number when KTF asks for it.

The second strategy would use KTF's marketing campaign which has made the Korean consumer base more aware about 3G to its advantage. SKT could simply offer a service that is competitive in the market and that has some advantage over the KTF service, such as better speeds or coverage, as well as lower prices. So, when a consumer researches which carrier is best to sign up with for a long term 3G contract, they will find that SKT actually is offering a similar service to KTF, so there is no reason for them to actually switch carriers.
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Do It Show: Question #2 - Reaction

Post  rio ohmori on Mon Nov 14, 2011 6:58 pm

By seeing short video clip uploaded in other thread, KTF's strategy seems to be "rich" company's strategy. (like SHOW cars driving in the city, renovating many shops and so on. Just like few people mentioned, in case of SKT, they can take similar strategy with spending more. Since SKT's subscribers share is 50%, they can work on to retain existing subscribers. Like Aiko mentioned, number portability is very good tip to keep customers. Also, if legally possible, can SKT provide handset in very low price with minimum requirement contract term, such as 1 year?

As the question is "If you were KTF's competitor, " I also thought about LG Telecom. For this company, I believe they have to think differently. I searched for several SHOW TV commercials.

https://www.youtube.com/watch?v=ZOEFkH0zF0w&feature=related
https://www.youtube.com/watch?v=l0j3yh0W_Uc&feature=related
https://www.youtube.com/watch?v=IhwjNWzGylE
https://www.youtube.com/watch?v=C8Kkf8Lm9Hk

Though I can't understand what they are talking about, KTF focused more on video technology except the one that a girl is eating sushi all the time. Global roaming and high speed data service part is not really focused. But I guess those two features are very helpful in business field. So if I were in LG Telecom, I may target not individual but corporation. Perhaps, provide numbers of handsets with special price and rate for business purpose. Of course business user friendly interface, apps, and etc are essential.
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Do It Show: Question #2 - Reaction

Post  aiko on Mon Nov 14, 2011 3:37 pm

At the point of a user, what situation will you switch from your current telecom to another? If it only provides same service and same quality, there are not enough attraction for me to move. Following are some points that will make me consider whether to switch:

1) Number Portability with low cost/ or even some discount.
This strategy is especially target on KTF’s current users.

2) Better/or equal service quality with much lower price.
Service quality is always the main concern for users. For the competitor, the quality they provide must be above. Since there must exist some switching cost, for example NP cost, or the inconvenient of switching procedure, lower price (usually it has to be lower than 40% or more) is really important to make the competitor more attractive!

3) Provide value-added services
Since hardware is difficult to make distinguish from other competitors, software is another battlefield to win the war. By providing useful and user-friendly application to refresh user experience, user may start to consider whether to move, this is what apple has proved for us!
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Re: Do It Show: Question #2 - Reaction

Post  Glen Yang on Mon Nov 14, 2011 2:07 pm

Xiaowei Wen wrote:From my point of view, SKT, the main competitor has two big advantages.
One is its big user base, they should try not letting the customers switch by copying KTF’s service (Since SKT is still the No.1 telecom provider in Korea and the tech is “easy to copy”, then why not copy?), but some improvements could also be made (or even, they try the 4G first).
The other one is its strong finances, thus they could use their abundant money to make more campaigns, like, make a new marketing campaign with the name “Back Home”, to show its sincerity to call back their past users who has switched to SHOW.
Actually there is a similar competition happened in China, when the “perennial number two” China Unicom tied up iPhone4 with the WCDMA(3G) service, they really fought a good fight. So I think to work with the No.1 Korean handset brand is a good strategy to fight back, and SKT can also make more similar strategies such as making a previous contract with Apple for the iPhone5‘s 3G service in Korea.

Hi Xiaowei,

I agree with the strong finances part, I think SKT really relied much on their strong finance, spent a huge amount money in marketing to compete with KTF to see “who can hold on longer”, then they may win the game once KTF’s marketing power reach a limit. if you were other small company that doesn’t have enough capital, you can’t afford to react like this at all.

And thanks for your case in China! it’s very interesting.
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Reaction: secure SKT's Clients first

Post  Laurent Corigliano on Mon Nov 14, 2011 9:43 am

Hi,

if I were SKT, my first thought would be to secure my customers and market share. Indeed, as the launch of SHOW is an immediate threat to my business, my first reaction is to make sure I'm not loosing customers and profits in order to be able to react. Indeed, the launch of 3G may not be a "2G killer" in the first months of its implementation since it could create new customers, so the pie would get bigger

Yet, after securing my customer base, it is well established that SKT has to do something. First of all, SKT has to launch the exact same offer nd make huge investments in marketing and communication to spread the word amid their customers and new potential targets. Then, as SKT will not benefit from "think different" philosophy (like SHOW), they have to prove that changing from SKT to KTF is not worth it, as they can provide the exact same services with the exact same advantages, and without the inconvenience of changing of mobile subscribers, doing new contracts and so on...
Finally, i quite agree with Glen who stated that they can work with a strong mobile producer (such as Samsung or HTC), in order to offer 3G package that will appeal to customers.
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Re: Do It Show: Question #2 - Reaction

Post  Xiaowei Wen on Mon Nov 14, 2011 9:40 am

From my point of view, SKT, the main competitor has two big advantages.
One is its big user base, they should try not letting the customers switch by copying KTF’s service (Since SKT is still the No.1 telecom provider in Korea and the tech is “easy to copy”, then why not copy?), but some improvements could also be made (or even, they try the 4G first).
The other one is its strong finances, thus they could use their abundant money to make more campaigns, like, make a new marketing campaign with the name “Back Home”, to show its sincerity to call back their past users who has switched to SHOW.
Actually there is a similar competition happened in China, when the “perennial number two” China Unicom tied up iPhone4 with the WCDMA(3G) service, they really fought a good fight. So I think to work with the No.1 Korean handset brand is a good strategy to fight back, and SKT can also make more similar strategies such as making a previous contract with Apple for the iPhone5‘s 3G service in Korea.
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Re: Do It Show: Question #2 - Reaction

Post  Glen Yang on Mon Nov 14, 2011 5:20 am

Here are some brief notes of SKT's reactions (the No.l telecom provider in Korea) for you as a reference:

1.Lauched their 3G service 3 months earlier.
2.Increased its marketing spending by 20% in the second quarter.
3.Worked with the No.1 handset manufacturer (Samsung Electronics) in handset development and marketing.
4.Aggressively introduced 8 new handset models within the year.
5.Purchased a 2.1 GHz frequency channel and invested heavily in constructing communications network.
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Do It Show: Question #2 - Reaction

Post  r99725051 on Mon Nov 14, 2011 4:00 am

If you were KTF’s competitor, how would you react?
Please give a brief command and reason that why you make this decision.
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Re: Do It Show: Question #2 - Reaction

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