Case Study
Analysis of telecom OPEX and cost reduction strategies
About the Client
An international mobile network operator (MNO), with presence in Europe and South America
Business Need
- The MNO was facing significant cost pressures, and sought ways to improve the profit margins in one of its European markets
- The client wanted RocSearch to analyse the strategies and global best practices deployed by MNOs for cost reduction
Approach and Methodology
- The team assessed the last five years’ financial performance of top 50 global MNOs and their cost reduction programmes. They categorised these companies under eight different cost reduction strategies
- The best performing MNO from each category was shortlisted and in-depth case studies were created on the strategies and tactics deployed by these MNOs to achieve their cost reduction targets
- The team also covered strategies of smaller players operating with healthy profit margins
- Provided an assessment of the benefits and potential risks (such as higher customer churn, inferior customer experience, etc.) of applying various cost reduction strategies
Business Outcomes
- Our findings were used by the head of the client’s strategy team, in his recommendations to the board to reduce the OPEX and cost for the company
