http://www.vancouversun.com/technology/Wind+Mobile+launches+Vancouver/3110612/story.html
Summary:
This article talks about Wind Mobile joining Vancouver to provide lower-cost wireless service. Vancouver is the sixth city where Wind Mobile has launched its network. Wind will add competition in Canada’s wireless market because there are no contracts which allow customers to leave if they don’t appreciate the service that is provided. Wind is also offering features such as unlimited talk and data plans at no extra cost upon signing with them. They are also offering 50% off the first six months with the company prior to joining Wind Mobile before June 30. For each friend that a customer brings to Wind, one month of wireless service is provided for free.
Connection:
With Wind Mobile joining the wireless market in Vancouver, there would be a more competitive oligopoly. Oligopoly is a competitive situation characterized by an industry that is comprised of only a few firms. When Wind joins the oligopoly in the wireless industry, it will create competition between other companies. There will be mutual interdependence in this industry because other wireless companies in Vancouver will have to consider how Wind would affect them when there are cheaper plans in the market now. With Wind in the market now, the other companies will lose some of their market share to Wind. Wind is also using non-price competition such as sales promotion and service to get a position in the market. They offer unlimited talk and data plans at no extra cost and 50% off for the first six months. This would attract quite a bit of customers especially when they only offer plans and no contracts.
Reflection:
Wind coming to Vancouver to join the wireless market definitely benefits the consumers. There would be a cheaper plans provided by Wind and other companies would be forced to gain back some of the market share by making more attractive offers. In my opinion, these cheap plans provided by Wind are only temporary. Wind is only providing these offers to attract consumers and establish a position in the market. It would be quite difficult for Wind to maintain these low plans offer therefore they will eventually have to raise their prices to make a profit. Wind will be no different than the wireless companies that exist now.
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With Wind coming to Vancouver, they will definitely be racking up some of the market shares. I agree that the cheaper plans can surely attract new consumers as well as consumers from the other companies. Consumers in the market are attracted to the plans without long term contracts. It is always a good idea to give benefits such as unlimited talk and data plans at no extra cost and 50% off for the first six months. It will be interesting to see what the other big companies (Telus,Bell,Rogers) will offer in their future plans. With the upcoming iPhone 4 in the market soon, these big companies will surely increase market share and sales.
ReplyDeleteWith Wind Mobile joining the competition in Vancouver, they will be taking up market shares. Hopefully they will attract customers with their temporary promotions such as 50% off their first 6 months of the contract. The promotion is temporary just to establish a solid position in the market. Competitors such as Fido and Rogers may have to put up some offers to compete with Wind. When a position is developed in the market, they will raise prices as they cannot profit with such deals. Eventually, Wind Mobile would just be like any other phone company out there with much more competitive prices.
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