Mobilcom AG - Countdown to Liberalization (A)

Published 11 Jan 1999
Reference 4834
Topic Strategy
Region Europe
Summary

Mobilcom is a young German firm which was created in 1991 and has been successful as a Mobile telephone service reseller. The A case takes place just before the deregulation of January 1998 and aims at discussing whether and how Mobilcom should enter the German fixed-line voice telephony market. The A case emphasises the opportunities as a new entrant provided by deregulation, given the huge value captured by Deutsche Telekom as a monopolist. The B case describes the entry of Mobilcom and how the industry turns into a price and capacity war.

Teaching objectives

The Mobilcom case illustrates the strategic challenges of new comers in a newly deregulated industry. It shows how the challenge of moving from a value capture strategy to a sustainable competitive advantage. This case can be positioned as a transition between Industry Analysis and Competitive Advantage.