SWOT Analysis for COSMOROM in the beginning

of commercial operation in 2000

NOVELTY in the charging system:
- charging per second
- No peak/off-peak tariffs
Attractive market price
Superior quality of the GSM 1800 MHz network, versus
900 MHz
Providing from the first day all standard services and
value added ones, like Voice Mail and Short Messages
Services.
The 3
rd
mobile phone operator on the market
Initial limited network coverage
Initial limited roaming system
Reduced network coverage and slow expansion of the network
Negative association perception linked with Romtelecom
Lack of specialized personnel
No Cosmorom web-site
Higher roll-out investment in the US GSM network
Many barriers for switching to COSMOROM network, because
of: cost of switching; penalty fees; renouncing of special deals;
inconvenience of changing the telephone number.
No loyalty programs, as Connex and Dialog have.
Fast growing market
Already educated market in the mobile phone domain
The quick expansion of the distribution network
Strategically selection of network dealers
Low mobile penetration (6 % in 1999) and also low fixed
telephone penetration (17 % in 1999)
Different positioning from competitors
Opportunity to create brand awareness and define a strong
brand image
Very competitive market in ATL and BTL activities
Aggressive competition and dynamic changes on the services mobile
phones market
Competition (Connex and Dialog) have near nation wide GSM
coverage
Limited core target (age 20-35, from urban zones, with medium and
high income, but dynamic, young (at least at heart) open-minded, modern,
rational with showing-off comportment), already customers of competitors
The corporate and small-medium enterprises customers are already
caught by competition.
High fraud rates
Black and gray market for handsets
Rapid development of roaming agreements
Rapid development of network coverage
Further education on charging per sec. concept
Launching of new services (new types of subscriptions,
like ATU and PLUS 25, and new types of services, like WAP)
sustained by many strategically campaigns in all the media
vehicles: TV, press, radio and outdoors,
in order to increase sales and awareness
Usage of Romtelecom (mother company) as
one of the biggest dealers for distribution network
Strong BTL activities in order to increase direct / indirect
contact with potential customers
Press releases and sponsorships in order to maintain the
awareness
Quickly respond to competitors launching of new services
Attempts to stop being follower and become leader in
new services (i.e. GPRS, VPN, IN, etc.)
Reinforcing Romtelecom image as Cosmorom dealer implies:
- more services to provide and more impact presence


Ways of tackling the weakness and the
threats from phase A
Market positioning as:
oSmart Choice versus - Connex is technology
- Dialogis cheaper
oCosmorom means good value for money fair
taxation
o Leaders as: - charging per second
- no peak / of-peak tariffs
- simplicity

Communication strategy by messages about:
- understanding
- transparency
- fairness

Network expansion by priority on cities according
to following criteria:
- Unemployment rates
- Business Development (Banks,
- Type of work (factories, offices)
- Gross Domestic Product per Capital