Telenor in India: Underdog's Innovative Pricing Strategy

 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : ECON034 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Microeconomics/ Price Strategy / Dynamic Pricing
Case Length : 10 pages
Period : 2009-2010
Pub. Date : 2011
Teaching Note : Available
Organization : Telenor / Unitech
Industry : Telecom
Countries : India

Abstract:

This case study helps in understanding the concepts of Price strategy and different degrees of Price Discrimination, in the Microeconomics course. Against the backdrop of the swift growth of the telecom industry in India backed by privatization since 1991, new players are emerging, making the telecom field a combat zone. The case study explains the pricing strategy of Uninor, a new entrant. It captures the growth of Uninor and the effectiveness of its "24X7 Badalta Discount Plan" launched in late 2009. The case revolves around the potency of Uninor's weapon over other giant players in both the short run and long run, and the likely response of the existing players. The case enables the students to deal with the following objectives.

Economics | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Issues:

To analyze the nature of the Indian telecom market and discuss the strategic implications of the economics thereof.

To discuss the economic and strategic logic behind Uninor's dynamic pricing strategy - 24x7 Badalta Discount Plan - and debate on the short term and long term impact on the company's performance levels in light of Uninor being the latest entrant into the Indian telecom market.

To examine whether Uninor's dynamic pricing corresponds to any of the three forms of price discriminations and discuss the implications of such price discrimination.

To discuss all the possible effects of Uninor's dynamic pricing strategy on the rest of the players in the industry and debate whether the existing players should respond or maintain status quo.

Contents:

  Page No.
Introduction 1
Indian Telecom Market: Going Wireless 1
The Busy Lines 2
Uninor: The New Entrant 3
Scintillating Tone: Discount Pricing 4
Uninor Dialing: Corrupt Signals? 5
Exhibits 7

Keywords:

Price strategy, Price Discrimination, Dynamic pricing strategy, Demand and Supply in a Market, Consumer Behavior, Price behavior, Oligopoly Market, Dynamic and Static Price and Demand equilibrium, Price Mechanism and different degrees of Price Discrimination, Strategy, Economics of Strategy , Telecom industry India, Telenor, Uninor

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