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Strategy Dynamics Case Study

There is an increasing competition for TV-distribution and TV-access in Switzerland between cable providers and telephon carriers. Especially the telephone carriers are trying to establish a position in the TV-distribution market by use of its telephone broadband network.

The background of the strategic challenge for the telephone carrier is the intensified attempt of the cable provider to provide fast and cheap internet access and telephone services through the cable network, depleting the customer base traditionally won by the telephone carrier.

The strategic performance of the Internet Protocol Television project

The business case for the telephone carrier was the IPTV project (Internet Protocol Television) and the strategic challenge to understand the dynamics of resources and flows that would drive the success of the project. The IPTV-project of the telephone carrier had two major goals: first to generate more profit from the broadband telephone lines, based on newly established services, and second to contribute to the reputation and ability to act as the leading all-in-one provider.

The Strategy Dynamics analysis of the case showed the major resources for the performance time path of the project were subscribers, content, sales force, advertisers and credibility. Only the optimal complementarity of theses resources in the time path could guarantee the succes of the IPTV project.

Sales staff as the critical resource

The building of the strategic architecture revealed the dynamics and the interdependence of the resources leading to generic and later quantified strategic actions to be implemented:

• Quickly build up strategic, interactive and broadband specific content and services together with content providers, raise sales force quickly to acquire and sell content and later advertisements, and boost the subscriber rate with an initial free set top box at the beginning of the marketing campaign
• Loose no subscribers - try to loose as few subscribers as possible to the competitor by high quality content, superior sales and suport services
• Acquire subscribers from your rival - try to switch as many cable subscribers as possible to your own broadband TV offer

Based on the Strategy Dynamics analysis a quantitatively and qualitatively defined strategy could be initiated.

Please feel free to contact us if you want to know more about Strategy Dynamics®.