A Strategic and Structured Approach to Launching an MVNO (2/4)

1. The Business Model
The first core strategic decision is selecting the appropriate business model:
1) the pure reseller model
2) the pure MVNO model
3) hybrid models

The business model selection process is guided by four criteria: offer differentiation and control, scale, funding, and capabilities.

2. The Entry Strategy
An appealing value proposition to a unique target segment of customers is the centerpiece of an MVNO’s strategy.

The MVNOs that excel find a specific niche segment that is either underpenetrated or underserved.

When considering the value proposition of a wireless offer, an MVNO should perceive the offer’s financial, functional, and emotional appeal from the customer’s point of view.

The customer-facing elements that together make up a wireless offer and customer experience should each serve to differentiate the MVNO from market incumbents. They also must be coherent with each other, be coherent with their segment’s needs and spending disposition, and combine to produce the desired value proposition.

3. The Business Plan
The initial detailed business plan emerges once the offer strategy has been defined. The business plan is finally refined with detailing of the operating model.