Client:
T-Mobile
On the Web:
www.t-mobile.com Project:
Applying Marketing Sciences to Build a Successful Business
Shorcut to:
Business Challenge
How Accenture Helped
High Performance Delivered Executive Summary:
T-Mobile USA, formerly VoiceStream, purchased the assets of
MobileStar in late 2001. The business was re-branded T-Mobile Hotspots, and
offered 802.11b (WiFi) service through a network of public access points.
T-Mobile aspires to become the industry leader by expanding from a few hundred
to over 10,000 public access points within five years. T-Mobile US's executive
committee sought an independent assessment of the proposed strategy and
business plan including customer demand, pricing, target venues, business model
and likely financial results, to build a successful business.
Business Challenge:
As a standalone business, MobileStar had
failed. T-Mobile faced the challenge of devising a strategy and business plan
that would make T-Mobile Hotspots a success and the industry leader. Given that
the industry was still in its nascence, T-Mobile needed to determine accurate
estimates of the market's size and their probable share, most appropriate
public access venues, roaming strategy, and pricing strategy. With other
wireless carriers poised to enter the market, T-Mobile needed to create a
sustainable competitive advantage and a financially viable business.
How Accenture Helped:
Over 10 weeks, Accenture revised and "fine-tuned"
several components of T-Mobile's WLAN strategy and tactics. Specifically,
Accenture: - Created a robust financial business case,
including a primary research-driven sizing of the market.
- Identified objective criteria for prioritizing
hotspot venues. Developed a list of potential hotspot venues and evaluated each
venue against these criteria using fact-driven data.
- Developed a segmentation methodology for going
to market. Led an Internet-based survey of 1,000+ target users (e.g., current
laptop and mobile phone users).
- Identified
critical success factors for the industry and assessed T-Mobile's existing
capabilities in light of industry trends.
- Recommended short- and long-term strategies for
partnering/roaming with other network operators and providers.
- Assessed industry trends and strengths of
existing and future competitors.
- Identified
strategic and tactical adjustments to T-Mobile's current pricing practices
High Performance Delivered:
Accenture assisted T-Mobile US in identifying gaps
and issues in its existing WLAN business plan and in developing new approaches
that allowed T-Mobile to be more successful.
With this knowledge, T-Mobile was better able to relaunch
the business, scaling investments to reflect better estimates of industry
growth. T-Mobile gained insight into which ventures were economic to serve and
in high demand by subscribers. The survey provided T-Mobile with insight into
their target customers segments, attractive price points and linkages to other
T-Mobile services. This improved their ability to market to and create
attractive offers for target customer segments.
Finally, Accenture identified various opportunities to
outflank competitors, achieve high performance status and become the industry
leader.
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