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October 9, 2003
OMNITEL PRONTO ITALIA
Background
Omnitel was the second largest cellular phone operator in Italy by the mid-1996. ... Management has to choose the new strategy to improve the Omnitel’s market position.
Analysis
• Industry overview
By April of 1996 Italy had 7. ... By 1996 there were only two competitors serving the Italians: Telecom Italia Mobile (TIM) with 96% market share and Omnitel Pronto Italia with 4%. ... Omnitel
The company was formed in January of 1994 with a capital of $900 million. ...
Omnitel chose to compete on customer service rather than on price since the major competitor TIM was so much larger. ... Telecom Italia Mobile (TIM)
TIM was formed in July of 1995 as a spin-off of State owned Telecom Italia. ... It also employed more than 20 shops that belonged to its parent Telecom Italia.
Recommendations
Based on the facts of the case, two major alternatives to the current strategy were proposed. ... The countries that adopted this strategy have the highest churn rate which Omnitel tried to keep at the lowest possible level.
Approximate Word count = 866
Approximate Pages = 3.5
(250 words per page double spaced)
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