Price War In Pakistan Cellular Industry
...June 12, 2008
PRICE WAR AMONG PAKISTAN CELLULAR COMPANIES
Price war is a global phenomenon. In the present world of economic growth, changing socioeconomic factors, dynamic labor markets and hyperactive macro environmental factors, almost all the companies face the problem of Price war. In this very competitive business environment no business can enjoy and sustain the success until it deals with the problem of lowering its’ products prices efficiently and successfully. In the near past, the competition among the businesses has been immense which has increased the importance of pricing function in any organization. Now companies are very cautious about the pricing policies and there is a great emphasis on defining the pricing efficiently not only to increase the market share but also to get the competitive advantage. Pricing is considered as the basic function of marketing in which companies invest heavily to attract and retain the customers. And after all these efforts, losing these customers is a great loss to the companies. Therefore, there is a great need to first, identify the factors that cause the company to enter into the price war. Secondly, devise the strategies to avoid entering into the price war scenario. And finally, come up with the ways to sustain its market share and reputation in price war situation.
Pakistan Government issued Telecom deregulation policy on 13th July 2003 which ended the monopoly of PTCL and awarded two new mobile licenses in April 2004, bringing the total number of licenses in Pakistan to six. As a result in early 2005 Telenor-Norway based company-entered into the Pakistani market with number of different tariff plans at a very low call rates. And this was...
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