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Mobilink—Pricing under Competition

Author

Listed:
  • Farid Ahmad

    (Head of Business Analysis & Planning, Pakistan Mobile Communications Limited)

  • Ehsan ul Haque

    (Associate Professor at Lahore University of Management Sciences)

Abstract

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. Each of them entails different costs based on expected customer response.

Suggested Citation

  • Farid Ahmad & Ehsan ul Haque, 2011. "Mobilink—Pricing under Competition," Asian Journal of Management Cases, , vol. 8(1), pages 7-28, March.
    • Handle: RePEc:sae:anjomc:v:8:y:2011:i:1:p:7-28
    DOI: 10.1177/097282011000800103
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