Omnital Case Study

Omnitel Pronto Italia Free Essay, Term Paper and Book Report

OMNITEL PRONTO ITALIA 1)Competitive Advantage Focus on Customer service : *Polite Operator *Minimum waiting time *One stop calling - trained operator 2) Why did the launch not performed? Due to the fact that: *The business is at its infancy *Cellular culture is not The customer didn't appreciate enough thedeveloped yet ( low penetration ) Onmitel didn'tCustomer Service *There is not enough territory coverage Onmitel didn't conquer newconquer TIM's customers *No price differentiation customers 3)LIBERO economics Onmitel's Free Time Monthly Fee: 10.000 It Liras  170 It Liras  19.812 75' off peak 1.524 It Liras 88' outbond: 13' peak 10.000 Total: 52.562 Onmitel's12.750 100' inbound: 25' peak + 75 off peak  195 20.735 80' off peak 1.595LIBERO Monthly Fee: 0 88' outbond: 13' peak 10.000 Total: 46.335 Onmitel's15.600 100' inbound: 25' peak + 75 off peak LIBERO should: *Increase the customer quantity *Increas......

The European Commission had declared that all member states would have to open their markets and guarantee competition in the telephone markets by January 1998. But the pressure for business interests made the European Commission anticipated the cellular telephony, which started in 1994. However some liberalization was subject to interpretation by the countries involved. The state-owned TIM had had a monopoly over the Italian telecommunications market until that time. But the market changed when the Omnitel started to sell cellular service in 1995.

Omnitel focused on the market in Italy, because cellular penetration was 7.5% by the first quarter of 1996, and it expected to increase