With the exponential raising of new technologies, the commoditization of services provided by telecom companies is increasing. The intense competition in the quadruple-play B2C market forces the profit margins to shrink, andthe whole industry remains stuck in a low-growth trend.
Hence, Telco’s have to take a strategic turn and reconsider their positioning, to diversify their portfolio and buildnew alliances to face the current challenges of the industry, thus to avoid becoming just simple data transporter inthe digital era. This is especially true in the B2B segment, which is considered as a growth factor for most of thetelecommunication companies, in addition to being a significant driver to compensate for the revenue erosionresulting from the B2C segment.
The B2B segment is confronted with the same challenges, where the traditional corporate connectivity, voice,and internet services are facing intense price pressure. The rising importance of ICT within the companies’strategies and the business expectations about new technologies tend to scale down the connectivity services to acommodity.
This is no exception for UPC Business, which is currently seeking to add new innovative ICT products andmanaged services to its portfolio, in order to balance the revenue erosion and, thus, pursue its exceptional growthfrom previous years.
The aim of this thesis is to help UPC Business to overcome these challenges. Based on a strategic analysis of theexternal and internal environment of the company, strategic options are discussed and further developed in a newbusiness model for UPC Business. Finally, some strategic recommendations are addressed to the seniormanagement: Develop people, improve operations, consolidate portfolio and establish an ICT partner ecosystem.
Following these recommandations UPC Business might reach a significant competitive advantage and become aserious player in the Swiss ICT market.