Objectives and strategy

Strategic objective

The strategic objective for Mobile International is to expand and continue profitable growth in the European mobile business.

  • Continued market outperformance in Germany and Belgium
  • Focus on profitable growth, leveraging flexible business model
  • Selective expansion in Europe through MVNO’s

Ambition

Over the past years the Challenger strategy has enabled Mobile International to deliver consistently on their promises. Significant potential from the Challenger strategy is still to be realized. Therefore Mobile International is confident it will enable them to deliver profitable growth in the future.

  • • Germany and Belgium: 15-20% service revenue market share and a solid EBITDA-margin of >38%
  • • Spain and France: Healthy EBITDA margin & cash flow positive in 2010 – 2011

Challenger strategy & cornerstones

With a number 3 position in Belgium and Germany, a different approach than the competitors is required. Mobile International is doing things different from competitors by cutting customer acquisition costs and focusing on maximizing margins. Its redesigned business model focuses on value creation and reducing and sharing of risk. Mobile International tries to maximize the value chain and create customer pull instead of push by individually targeting customers segments. By individually targeting customers segments, Mobile International tries to maximize the value chain and create customer pull instead of push.

Strategic cornerstones

The Challenger strategy is built around 4 key pillars (cornerstones).

Position around customers

Target specific segments and attract customers with a de-average offer, which multi-brand suits their needs best.

Create customer pull

Design segment-specific, highly differentiated offers that will be irresistible for finely-targeted customers. This enables them to offer value for money services stimulating customer pull instead of customer push.

Establish partnerships

Build wholesale partnerships to attract different customer segments via partners with enhanced distribution and outsource to reduce cost and share risk.

Introduce profit-maximizing value chains

Structure its organization around segment-specific end-to-end value chains, while de-average offers by matching customer spend to service levels and cost to serve.