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Analysing Business Acumen - A Study on O2 and HTC

February 21, 2012 | Comments: 0 | Views: 170

If you're a UK mobile phone network, you're operating in a saturated market, and you need to offer some point of differentiation when it comes to luring in customers from other mobile phone networks to join yours.

What do networks do to make them stand out from the crowds, and win their competitor's customers? What sort of decision-making does this represent, and what can be learned from it? This article examines the relationship between O2, a UK mobile phone network, and HTC, an international mobile phone manufacturer.

Lesson 1: Niche differentiation

When you're trying to sell a product as wide-reaching as a mobile phone, you know that some of your potential customers are going to fall into niche categories that exist within your target market. One such niche is for "brightly coloured phones" - and O2 have a bucket-load, provided exclusively to O2 from HTC. Examples include the HTC Desire in "Pastel Teal", plus the HTC Rhyme sporting a wine-coloured finish. These phones are bound to sell well to those who'd rather have something colourful than something plain, black and perceived as boring.

Don't be afraid of the controversial when targeting your niche. O2 have exclusive rights to the HTC Rhyme - a mobile phone that was "manufactured for girls". Feminist commentators have described the overt sexist marketing as anything from "insulting" to "downright bizarre". But the negative press didn't prevent O2 from ranging the product, and as a result they have been able to capitalise on the share of the market that has not been offended by the Rhyme's marketing campaign. As the old saying goes, there is no such thing as bad press...

Lesson 2: Know your winners

It is important for everyone in your company to have an intimate knowledge of the industry you operate in. That way, big winners will be obvious to everyone in all departments. One big winner that O2 have picked up on is the Android operating system. Android has overtaken Apple's rate of new connected handsets, and looks poised to become the number one operating system the world over.

With such a popular operating system on the ascendancy, it makes sense that all of O2's current line-up of HTC mobiles are Android phones. The less popular and less well-known Windows Phones (of which there a number manufactured by HTC) are missing from O2's portfolio, and with good reason. HTC make exceptional Android phones, whereas they have not proved themselves when it comes to the Windows alternative.

This will undoubtedly help the relationship. O2 will sell more of the popular phone, and HTC will see that all their products are being sold: win-win.

Lesson 3: Avoid the obvious losers

This can be difficult when you also have to flirt with the controversial. But if all members of your team know your industry inside out, you'll be able to spot a loser a mile off. Take another example from O2. They have deliberately chosen to avoid ranging the HTC Cha Cha. A so-called "Facebook phone", the Cha Cha has definitely been a flop for HTC, with other UK networks struggling to sell off their stock, even at bargain-bin prices.

Follow the advice to stay ahead.

Whilst small businesses may well ask how it is possible to "avoid the losers", in reality it is simpler than you think to learn from such big deals as the HTC O2 co-operation.

The key is simple:

Know your niche, and Stay on top of the interests of your target audiences.

If every member of your team is pulling their weight, you'll be able to steer your company through the mists of the obscure, and will be able to make the best strategic deals for both you and your business partners.

Freya Marlin is a Digital Marketing Executive for the mobile phone industry. She is currently focused on O2 Phones and contracts, and is the proud owner of her own HTC Rhyme.

Source: EzineArticles
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Article Tags:

Mobile Phone


Analysing Business


Mobile Phone Network


Business Acumen


Business Deals





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