Free company: Case study

Résumé du document

Free adventure begins in April 1999 and the company now ranks as the second French Internet Service Provider. Free belongs to Iliad group, a telecommunications specialist. According to the website of the company, business development is based on the model of a "French Internet provider", backed by a telecom operator. In 2012, Free had gained the fourth 3G mobile licence and is now not only an ISP but also a mobile operator.

Its specificities lies in the ultra-competitive prices that can be explained by a good knowledge of the network. This strategy allows a complete control costs and a very interesting positioning compared to the competition.

As far as the marketing is concerned, simplicity and readability are the strengths of Free's: an offer, a price, a technology and not a multitude of packages. Thus, Free's communication is much lighter than the competition. In addition, the company offers constantly promising innovations and stands as a leader in the field of new applications in order to maintain competitiveness despite stable prices

Extraits

[...] It is through marketing that will be the war of mobile telephony and the Internet in the coming years. Free has already begun to differentiate its brand through innovative designs, new features mainly related to new technologies and always with the benefit of discounted Free prices. However, there is an alignment of the competition in terms of supply and price. Therefore, it is essential that this activity remains in the hands of the company to ensure the sustainability of the brand. Free excel in marketing but is also present in regard to services provided to customers. [...]

[...] Free belongs to Iliad group, a telecommunications specialist. According to the website of the company, business development is based on the model of a "French Internet provider", backed by a telecom operator. In 2012, Free had gained the fourth 3G mobile licence and is now not only an ISP but also a mobile operator. Its specificities lies in the ultra-competitive prices that can be explained by a good knowledge of the network. This strategy allows a complete control costs and a very interesting positioning compared to the competition. [...]

[...] very competitive market : France Telecom: incumbent operator, SFR, Bouyges Telecome and others Significant financial needs: buying licenses, R&D and infrastructure Threats Concentrated market with mostly 3 competitors: especially France Telecom with almost half of the market and also SFR and Bouygues Important financial needs to invest. The RAEPC defines financial conditions to be met in order to obtain a license. Since the problems faced by consumers (connection quality, availability and cost of the telephone hotline . associations and groups defending consumer rights have multiplied in recent years Strengths Subsidiary of the Iliad Group which achieved a consolidated turnover of 3.153 (according to Iliad group, 2012) Free has a solid financial base and benefits from the experience of its parent company in the telephony market. [...]

[...] Digital tablets are a threat to telephony market as they grow very quickly and they propose lots of function as a smartphone . However, it is not possible to call with this technology, something that could come in the next few years . The intensity of rivalry among competitors Competitors, as customers, have a pressure at least as important on Free. Competitors have a war on price but also on quality, which is area of excellence of France Telecom. Competition is obviously on prices but also on the range of services available and accessible from the "box" of each operator. [...]

[...] Thus, Free's communication is much lighter than the competition. In addition, the company offers constantly promising innovations and stands as a leader in the field of new applications in order to maintain competitiveness despite stable prices 1.2 Strategic Business Area Nowadays, the strategic business areas of Free are the following: Internet Service Provider which is declined into several offers: Fiber optic access which offers several advantages: as far as Free is concerned and contrary to other fiber optic accesses, flow is always guaranteed through dedicated fiber available to each customer. [...]