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Mobilink, pricing under competition / Farid Ahmad & Eshan ul Haque.

By: Contributor(s): Material type: TextSeries: Publisher: [London] : SAGE, 2016Description: 1 online resource : illustrations (black and white, and colour)Content type:
  • text
  • still image
Media type:
  • computer
Carrier type:
  • online resource
ISBN:
  • 9789351503811 (ebook) :
Subject(s): DDC classification:
  • 658.816 23
Online resources: 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.
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Originally Published in: Ahmad, F., & ul Haque, E. (2011). Mobilink-Pricing under competition. Asian Journal of Management Cases, 8(1), 7-28. DOI: 10.1177/097282011000800103.

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.

Description based on online resource; title from home page (viewed on April 25, 2016).

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