Case Study | 09 October 2024
How a Telecom Company Identified Its Supply and Demand Triggers and Integrated Them for Profitable and Sustainable Growth?
Posted by : Akshay Pardeshi
A US-based telecom enterprise turned its business to advance technology and was found trapped in the perplexities of the market mechanism. The dynamic tendency of demand and supply was restricting its business growth. The company leadership sought the services of Research Nester Private Ltd to integrate efficient supply and demand equilibrium strategies through technical and marketing innovation.
An overview:
- A telecom company in the U.S. ventured into the offering of a 5G network in 2019. With a wide range of applications, there was a high demand for 5G. However, just analyzing historical demand patterns and supply trends of competitors was not enough to strategize growth and productivity.
- The Company was not able to identify potential risks such as band & spectrum availability issues, expenses of deployment of services, the need for upgraded mobile devices by users, and security & privacy concerns. Hence its growth was stunted.
- By March 2021, after several failed attempts the Company’s leadership realized that it would need professional help, to devise a plan of action for estimating the future market scenario related to demand and supply. It then sought out Research Nester’s services to facilitate long and sustainable growth with profitability.
- Research Nester analysts helped the company to incorporate a strategy that enabled it to manage market dynamics and build up sales gradually and finally reach its planned business objective.
The Story
The Telecom Company was founded in 2011. It had accomplished a strong market for its products in a short period. In January 2019, anticipating a lucrative market scenario of advanced technology it proceeded to take its next big step by diving into offering 5G technology. However, the lack of high-frequency band & spectrum and high expenses for deployment led to poor-quality service. Moreover, the user expenses for upgrading to a new device, security & privacy concerns, and their limited availability impacted the company’s ability to secure a consistent and cost-effective supply of materials. This resulted in supply constraints of service. Additionally, the service being new in the market was not able to anticipate the demand. Apart from that environmental concerns related to the 5G network became one of the problems due to which the company had to face many repercussions. This major setback in the very 2nd year of the company’s new venture, made the authorities turn to Research Nester to act on their behalf to find out a solution to the problem.
Our Solution:
The major pain point of the company was the lack of in-depth research related to the supply and demand scenario of telecom service assurance. Research Nester offered its supply and demand analysis consulting services solution to enable the organization to understand the market logistics and focus on mitigating supply and demand risks. RNPL consultants suggested the following road map for a better future.
- Analyzing the external business environment
- Determining the targeted applications and preferences
- Having scope for scalability
- Assessing the strengths and weaknesses of the service
- Brainstorming the forces that affect the supply and demand patterns in the market
- Many Innovations that could positively impact society
By utilizing these analytical tools, the company could optimize its inventory, manage its suppliers, and figure out the current market trends to strategize its production.
Results
The company was struggling with severe supply-demand fluctuations and a very poor return on investment. The percentage growth of the company at the first-year end (2019) was 20%, which went down to 10% by the end of 2020. After a year, for the business to grow sustainably, Research Nester was brought on board. Including their offering to suppliers, the analysts developed a strategy given the company's supply and demand business model. Market demand analysis, industry users with service requirements, and today's competitive environment were also analyzed. In addition, for improving the quality of service it was also assessed whether a proportionality requirement could be applied to each individual depending on the services in question. By the end of 2021, this rate had risen to 20 %, and it was on course for 45 % by the end of 2022. The company has succeeded in improving its position in the market, as well as boosting profitability through an improved understanding of marketing mechanisms and vital analysis of today's and future trends. All of them contributed to the maximization of its revenues.
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