Restoring a wireless provider's market leadership - Bain & Company

Bain uses cookies to improve functionality and performance of this site. More information can be found in our Privacy Policy. By continuing to browse this site, you consent to the use of cookies.

Case Study

Restoring a wireless provider's market leadership

A US wireless provider needed to stem customer defection after competitors threatened its position as a leader in the low-end segment. Bain helped the company develop a strategy to quickly restore its leadership position and sustain strong future growth amid a quickly evolving competitive landscape.

  • min read

At a Glance

  • 35% rise in net profits
  • 60% rise in stock price within 10 months after Bain started work

The Full Story

The Situation

Wireless ProviderCo's* highly successful growth strategy — offering flat rate cell phone service to the low-end of the market — was under attack.

Competitors took aim at Wireless ProviderCo's customer base after growth slowed among the premium segment.

Customer satisfaction plummeted, spurring defections. In such a rapidly shifting landscape, Wireless ProviderCo was unsure how to regain its leadership.

Our Approach

Working with the CEO, we assessed industry trends to determine the future of the wireless market as well as the company's competitive position.

Our Recommendations

Based on the findings, we developed three market options for Wireless ProviderCo, playing out each alternative and the possible economic outcomes, and helped Wireless ProviderCo's executive team select a strategy.

We also developed a flexible pricing structure and worked with Wireless ProviderCo's team to design a roll-out plan for the pricing structure.

The Results

Wireless ProviderCo's flexible pricing structure quickly attracted a record number of new customers. Year on year, new sign ups increased by over 50 percent; net profits rose over 35 percent and customer churn dropped.

The dramatic turnaround restored investor confidence: in the 10 months after we started our work, Wireless ProviderCo's stock price shot up 60 percent while its closest competitors' stock value declined.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

Want to continue the conversation?

We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results.