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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 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
• 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.

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