SMS battle in Malaysia
Will there be free SMS in Malaysia? Consumers may wish so, but the operators will curse the day they started a pricewar.
The Star (Malaysia) says that the lowest costs per SMS now is 2 sen per SMS, offered by Celcom and RM18 for a prepaid starter kit, offered by Digi (RM 3.80 is US$1 in Malaysia.
Celcom's CEO, Datuk Ramli Abbas, says competition is the name of the game in the mobile industry and “pricing strategy comes to the fore when the market hots up.”
But please remember, that this is a dangerous strategy - pricing pampers the consumers, for sure, but once prices are down, it is hardly ever possible to bring them back up. Those companies with the strongest economies of scale will most likely winning price wars - see Dell Computer's strategy in starting a price war in the mids of a recession and when HP was troubled in digesting Compaq Computer. It surely is better strategy to reduce prices indirectly by offering something that is of additional value to customers. But now, there is no turning back.
(by Asia Business Consulting)
The Star (Malaysia) says that the lowest costs per SMS now is 2 sen per SMS, offered by Celcom and RM18 for a prepaid starter kit, offered by Digi (RM 3.80 is US$1 in Malaysia.
Celcom's CEO, Datuk Ramli Abbas, says competition is the name of the game in the mobile industry and “pricing strategy comes to the fore when the market hots up.”
But please remember, that this is a dangerous strategy - pricing pampers the consumers, for sure, but once prices are down, it is hardly ever possible to bring them back up. Those companies with the strongest economies of scale will most likely winning price wars - see Dell Computer's strategy in starting a price war in the mids of a recession and when HP was troubled in digesting Compaq Computer. It surely is better strategy to reduce prices indirectly by offering something that is of additional value to customers. But now, there is no turning back.
(by Asia Business Consulting)
posted by Andreas @ 1:52 pm
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