Strategies for Success in the New Telecommunications Marketplace (Artech House Telecommunications Library)

The author examines the slow pace of competitive development in the US telecommunications industry and the lack of risk-taking to provide consumers with a better service. The author also considers the situation in other developed countries. Preface xv......Page 14 1 Map of the Market 1......Page 16 1.1 Access providers 4......Page 19 1.2 Transport providers 11......Page 26 1.3 Services, software, and content 15......Page 30 1.4 Convergence 19......Page 34 2 Today's Telecommunications Landscape 23......Page 38 2.1 Unique market characteristics and challenges 24......Page 39 2.2 Role of the Internet 30......Page 45 2.3 How mergers have changed the market 32......Page 47 2.4 Non-U.S. markets 33......Page 48 2.5 Strategic positions 40......Page 55 3 Competitive Successes 43......Page 58 3.1 Growth through mergers and acquisitions 44......Page 59 3.2 Pricing 49......Page 64 3.3 Embracing competition 55......Page 70 4 Blunders in the Competitive Market 59......Page 74 4.1 Positioning and pricing 60......Page 75 4.2 Handling the brand 67......Page 82 4.3 Opportunity costs 69......Page 84 5.1 Porter's competitive strategy model 77......Page 92 5.3 Competing against real and strategic competitors 80......Page 95 5.4 Keeping up with the changing future 83......Page 98 5.5 Technology as barrier to entry and as differentiator 86......Page 101 5.6 Customer buying patterns 88......Page 103 5.7 Usage accelerators 89......Page 104 6.1 Quality verses price debate 95......Page 110 6.2 Build verse buy decisions 100......Page 115 6.3 Economies of scale and scope 104......Page 119 6.4 Setting market share goals 108......Page 123 7 Strategies for Success 113......Page 128 7.1 Misconceptions about strategy development 114......Page 129 7.2 Strategy is ubiquitous 115......Page 130 7.3 Strategies and the paths to differentiation 117......Page 132 7.5 Marketing strategies 120......Page 135 7.6 Operations strategies 122......Page 137 7.7 Financial strategies 123......Page 138 7.8 Strategy tools 124......Page 139 8.1 The value proposition 127......Page 142 8.2 Transfroming the business model 130......Page 145 8.3 New models 133......Page 148 8.4 Emerging models 138......Page 153 8.5 Supporting tools 142......Page 157 8.6 Role of information technology 145......Page 160 9 Core Competencies 147......Page 162 9.1 Identifying real strengths 149......Page 164 9.2 Core competencies by business model 151......Page 166 9.3 Identifying market opportunities 153......Page 168 9.4 Outsourcing 155......Page 170 9.5 Seeking and targeting competitor weaknesses 158......Page 173 9.6 Supporting tools 159......Page 174 9.7 Role of information technology 161......Page 176 10 Organizational Strategies 165......Page 180 10.1 Company culture 166......Page 181 10.2 Knowledge management 168......Page 183 10.3 Organizational structure 170......Page 185 10.4 Reengineering 173......Page 188 10.5 Skills and training 174......Page 189 10.6 Supporting tools 176......Page 191 10.7 Role of information technology 178......Page 193 11.1 The nature of competitive parity 181......Page 196 11.2 First-mover advantage 185......Page 200 11.3 Game theory 186......Page 201 11.4 Choosing parity battles 189......Page 204 11.5 Retaining the customer 190......Page 205 11.6 Raising the bar 193......Page 208 11.8 Role of information technology 195......Page 210 12 Distribution Strategies 197......Page 212 12.1 Differentiation within the distribution chain 198......Page 213 12.2 Coexisting wholesale and retail strategies 199......Page 214 12.3 The case against vertical integration 203......Page 218 12.4 Supplier and partner strategies 206......Page 221 12.5 Internet strategies 207......Page 222 12.6 Supporting tools 210......Page 225 12.7 Role of information technology 211......Page 226 13 Pricing 213......Page 228 13.1 The pioneers of pricing 214......Page 229 13.2 Pricing and profitability 216......Page 231 13.3 Competing against free service 219......Page 234 13.4 Telecommunications as commodity 224......Page 239 13.5 Revolutionizing price structures 226......Page 241 13.6 Supporting tools 227......Page 242 13.7 Role of information technology 228......Page 243 14 Best-in-Class Performance 231......Page 246 14.1 The challenges of preeminence 233......Page 248 14.2 The requirements of preeminence 236......Page 251 14.3 Case studies 239......Page 254 14.4 Partnerships 241......Page 256 14.5 Supporting tools 243......Page 258 14.6 Role of information technology 245......Page 260 15 Customer Service 247......Page 262 15.1 Service as differentiator 248......Page 263 15.2 Improving traditional forms of service 252......Page 267 15.3 Billing 253......Page 268 15.4 Web-based service 255......Page 270 15.5 Call centers 258......Page 273 15.6 Customer relationship management 259......Page 274 15.7 Supporting tools 250......Page 275 15.8 Role of information technology 261......Page 276 16 Technology Management 263......Page 278 16.1 Innovation and disruptive technologies 264......Page 279 16.2 The network effect 267......Page 282 16.3 Research and development strategies 269......Page 284 16.4 Service creation 271......Page 286 16.5 Budgeting for technology expenditures 272......Page 287 16.6 Managing service introductions 274......Page 289 16.7 Supporting tools 275......Page 290 16.8 Role of information technology 276......Page 291 17.1 Increasing market share 279......Page 294 17.2 Increasing market size 283......Page 298 17.3 Vertical and horizontal integration 285......Page 300 17.4 Sizing new markets 287......Page 302 17.5 Locating acquisition candidates 289......Page 304 17.6 Supporting tools 290......Page 305 17.7 Role of information technology 292......Page 307 18 Cost Leadership 295......Page 310 18.1 Characteristics of cost leadership 296......Page 311 18.2 Maintaining cost leadership 300......Page 315 18.3 Cost drivers 302......Page 317 18.4 Profit centers and cost centers 304......Page 319 18.5 Cost measurement 305......Page 320 18.6 Supporting tools 307......Page 322 18.7 Role of information technology 308......Page 323 19.1 Financing alternatives 311......Page 326 19.2 Competing in the investment community 317......Page 332 19.3 Releasing shareholder value 318......Page 333 19.4 Return on investment strategies 321......Page 336 19.5 Supporting tools 323......Page 338 19.7 Summary 325......Page 340 List of Acronyms 327......Page 342 About the Author 331......Page 346 Index......Page 348 Preface xv 14 1 Map of the Market 1 16 1.1 Access providers 4 19 1.2 Transport providers 11 26 1.3 Services, software, and content 15 30 1.4 Convergence 19 34 2 Today's Telecommunications Landscape 23 38 2.1 Unique market characteristics and challenges 24 39 2.2 Role of the Internet 30 45 2.3 How mergers have changed the market 32 47 2.4 Non-U.S. markets 33 48 2.5 Strategic positions 40 55 3 Competitive Successes 43 58 3.1 Growth through mergers and acquisitions 44 59 3.2 Pricing 49 64 3.3 Embracing competition 55 70 4 Blunders in the Competitive Market 59 74 4.1 Positioning and pricing 60 75 4.2 Handling the brand 67 82 4.3 Opportunity costs 69 84 5 Rewriting the Rules for Success 77 92 5.1 Porter's competitive strategy model 77 92 5.2 Conventional wisdom unravled 80 95 5.3 Competing against real and strategic competitors 80 95 5.4 Keeping up with the changing future 83 98 5.5 Technology as barrier to entry and as differentiator 86 101 5.6 Customer buying patterns 88 103 5.7 Usage accelerators 89 104 6 Strategic Decisions 95 110 6.1 Quality verses price debate 95 110 6.2 Build verse buy decisions 100 115 6.3 Economies of scale and scope 104 119 6.4 Setting market share goals 108 123 7 Strategies for Success 113 128 7.1 Misconceptions about strategy development 114 129 7.2 Strategy is ubiquitous 115 130 7.3 Strategies and the paths to differentiation 117 132 7.4 Planning strategies 120 135 7.5 Marketing strategies 120 135 7.6 Operations strategies 122 137 7.7 Financial strategies 123 138 7.8 Strategy tools 124 139 8 Business Modeling 127 142 8.1 The value proposition 127 142 8.2 Transfroming the business model 130 145 8.3 New models 133 148 8.4 Emerging models 138 153 8.5 Supporting tools 142 157 8.6 Role of information technology 145 160 9 Core Competencies 147 162 9.1 Identifying real strengths 149 164 9.2 Core competencies by business model 151 166 9.3 Identifying market opportunities 153 168 9.4 Outsourcing 155 170 9.5 Seeking and targeting competitor weaknesses 158 173 9.6 Supporting tools 159 174 9.7 Role of information technology 161 176 10 Organizational Strategies 165 180 10.1 Company culture 166 181 10.2 Knowledge management 168 183 10.3 Organizational structure 170 185 10.4 Reengineering 173 188 10.5 Skills and training 174 189 10.6 Supporting tools 176 191 10.7 Role of information technology 178 193 11 Competitive Parity 181 196 11.1 The nature of competitive parity 181 196 11.2 First-mover advantage 185 200 11.3 Game theory 186 201 11.4 Choosing parity battles 189 204 11.5 Retaining the customer 190 205 11.6 Raising the bar 193 208 11.7 Supporting tools 195 210 11.8 Role of information technology 195 210 12 Distribution Strategies 197 212 12.1 Differentiation within the distribution chain 198 213 12.2 Coexisting wholesale and retail strategies 199 214 12.3 The case against vertical integration 203 218 12.4 Supplier and partner strategies 206 221 12.5 Internet strategies 207 222 12.6 Supporting tools 210 225 12.7 Role of information technology 211 226 13 Pricing 213 228 13.1 The pioneers of pricing 214 229 13.2 Pricing and profitability 216 231 13.3 Competing against free service 219 234 13.4 Telecommunications as commodity 224 239 13.5 Revolutionizing price structures 226 241 13.6 Supporting tools 227 242 13.7 Role of information technology 228 243 14 Best-in-Class Performance 231 246 14.1 The challenges of preeminence 233 248 14.2 The requirements of preeminence 236 251 14.3 Case studies 239 254 14.4 Partnerships 241 256 14.5 Supporting tools 243 258 14.6 Role of information technology 245 260 15 Customer Service 247 262 15.1 Service as differentiator 248 263 15.2 Improving traditional forms of service 252 267 15.3 Billing 253 268 15.4 Web-based service 255 270 15.5 Call centers 258 273 15.6 Customer relationship management 259 274 15.7 Supporting tools 250 275 15.8 Role of information technology 261 276 16 Technology Management 263 278 16.1 Innovation and disruptive technologies 264 279 16.2 The network effect 267 282 16.3 Research and development strategies 269 284 16.4 Service creation 271 286 16.5 Budgeting for technology expenditures 272 287 16.6 Managing service introductions 274 289 16.7 Supporting tools 275 290 16.8 Role of information technology 276 291 17 Business Expansion 279 294 17.1 Increasing market share 279 294 17.2 Increasing market size 283 298 17.3 Vertical and horizontal integration 285 300 17.4 Sizing new markets 287 302 17.5 Locating acquisition candidates 289 304 17.6 Supporting tools 290 305 17.7 Role of information technology 292 307 18 Cost Leadership 295 310 18.1 Characteristics of cost leadership 296 311 18.2 Maintaining cost leadership 300 315 18.3 Cost drivers 302 317 18.4 Profit centers and cost centers 304 319 18.5 Cost measurement 305 320 18.6 Supporting tools 307 322 18.7 Role of information technology 308 323 19 Funding Strategies 311 326 19.1 Financing alternatives 311 326 19.2 Competing in the investment community 317 332 19.3 Releasing shareholder value 318 333 19.4 Return on investment strategies 321 336 19.5 Supporting tools 323 338 19.6 Role of information technology 325 340 19.7 Summary 325 340 List of Acronyms 327 342 About the Author 331 346 Index 348 Artech,House Strategies For Success In The New Telecommunications Marketplace Provides A Clear Road Map Of The Current And Future Market Under Continued Deregulation, To Help Identify Future Competitors And Position An Enterprise For Long-term Success. Case Studies Of Strategic Successes And Failures Reveal Ways To Minimize Potential Risks And Select The Most Feasible Direction For A Particular Company.--jacket. 1. Map Of The Market -- 2. Today's Telecommunications Landscape -- 3. Competitive Successes -- 4. Blunders In The Competitive Market -- 5. Rewriting The Rules For Success -- 6. Strategic Decisions -- 7. Strategies For Success -- 8. Business Modeling -- 9. Core Competencies -- 10. Organizational Strategies -- 11. Competitive Parity -- 12. Distribution Strategies -- 13. Pricing -- 14. Best-in-class Performance -- 15. Customer Service -- 16. Technology Management -- 17. Business Expansion -- 18. Cost Leadership -- 19. Funding Strategies. Karen G. Strouse. Includes Bibliographical References And Index. Authored by telecommunications expert Karen G. Strouse, this practical book delivers the specific tools needed for determining the best strategic direction for any company in the crowded telecommunications marketplace. It helps you select the right path to competitive differentiation, improve decision-making, gain valuable competitive insights, and find answers to critical industry-specific questions, such as: is it best to be a facilities-based provider or a reseller? Where should you operate on the distribution chain? How should you prioritize capital investment? "Strategies for success in the new telecommunications market place" provides a cleat road map of the current and future market under continued deregulation, to help identify future competitors and position an enterprise for long-term success. Case studies of strategic successes and failures reveal ways to minimize potential risks and select the most feasible direction for a particular company "Strategies for Success in the New Telecommunications Marketplace provides a clear road map of the current and future market under continued deregulation, to help identify future competitors and position an enterprise for long-term success. Case studies of strategic successes and failures reveal ways to minimize potential risks and select the most feasible direction for a particular company."--BOOK JACKET. Only a few decades ago, charting the components of the telecommunications market required a pair entries: a fully integrated network for local service and long distance and the ubiquitous and featureless dial telephone.