Tom Lynch, Sonia Skelton, Michael H. Lyons, "Strategic Analysis of Global Telecoms Service Provision", 1994
ua435
One of the largest growth areas in telecommunications is global business communications. In today's global economy, companies want to communicate across the globe through a single service provider, in a seamless manner between all their locations. For this to happen the service provider must operate in markets which have differing cultures, regulatory frameworks and levels of competition. We present here a system dynamics model developed using the IThink software package, which investigate some of the major issues of global service provision. The world is segmented into four regions within which there can be distinctly different conditions. The model captures the complexity of obtaining a customer in a region and providing a global service in time scale which will satisfy the requirement for connectivity between world-wide locations. The degree to which customer's requirement can be met will be dependent on the presence the provider has throughout the world. Initial results indicate that the perception of a provider’s service has a strong influence on market share within its home region and also the other region of the world. However, this can lead to scenarios where a strategy to improve service offering without due regard to provisioning constraints can lead to a loss of market share. The modeling activity delivered three major benefits: it has provided valuable insight into a key telecommunications markets; it has demonstrated the applicability of system dynamics to telecommunications strategy, and; it has highlighted areas for development which will provide future value.
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