Mobilink—Pricing under Competition

Farid Ahmad and Ehsan ul Haque
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Farid Ahmad: Head of Business Analysis & Planning, Pakistan Mobile Communications Limited
Ehsan ul Haque: Associate Professor at Lahore University of Management Sciences

Asian Journal of Management Cases, 2011, vol. 8, issue 1, 7-28

Abstract: Mobilink management needs to come up with a response to the entry of Telenor in the Pakistani cellular phone market. Contrary to Mobilink’s expectations and hopes, Telenor entered the market with a lower, and much simpler, pricing strategy. Mobilink being the dominant player (63 per cent market share) needs to think through its options. As a large player, responding too aggressively to this lower price (by a multinational with deep pockets) could lead to a long-term price war in which Mobilink stands to lose the most. On the other hand, a weak response might send the wrong signals not only to Telenor but also to other entrants in the wing. The managers have a variety of pricing options to choose from. Each of them entails different costs based on expected customer response.

Keywords: Pricing; price competition; cellular pricing; pricing services; price bundles; telecom marketing; service industry (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:sae:anjomc:v:8:y:2011:i:1:p:7-28

DOI: 10.1177/097282011000800103

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