Why many MVNOs are set to fail: They’re fighting the wrong battle. We’ve found ourselves working with several MVNOs (mobile virtual network operators) over the years, and always tell them the same thing: you cannot try to be a mini-telco. You will never beat the market-dominant players at their own game. Even if you are 5%-10% better in key areas like customer service, brand, and price, you are still unlikely to win. Instead, MVNOs need to figure out what makes them distinctive. Then, build out their value proposition on that, targeting their specific customer audience and fighting smart by leveraging niche markets, innovative partnerships, or unique technological advantages.
Malcolm Gladwell’s book “David and Goliath: Underdogs, Misfits, and the Art of Battling Giants” is fitting in this regard. Goliath was the established giant, strong and well-equipped. David didn’t try to beat Goliath at his own game – close-range combat. That would have been suicide. Instead, he used his distinctive advantage – his slingshot and accuracy – to overcome the giant. MVNOs need to identify their differentiating factors and leverage them effectively.
What might these differentiating factors be? Here are some examples of unique selling propositions (USPs) that MVNOs can focus on:
Building Partnerships:
Partner with other businesses to offer bundled services or reach new customer segments. Partnering with local businesses, retailers, financial services players, or even complementary service providers can give MVNOs access to a wider customer base.
Strategic and Agile Marketing:
Being nimble and responsive to market changes, quickly adapting their offerings and campaigns. MVNOs can’t afford slow, bureaucratic marketing. They need to be agile, test new ideas, and iterate quickly based on data.
Data-Driven Decisions:
Using analytics to understand customer behaviour and optimise their strategies. Data is crucial for understanding customer needs, preferences, and pain points. MVNOs should use data to inform their pricing, marketing, and customer service strategies.
Focusing on a Few Key Battles:
Rather than trying to compete across the board, MVNOs should identify a few key areas where they can excel and concentrate their resources there. They can’t be everything to everyone. They need to choose their battles wisely and focus on winning in those areas.
By focusing on their differentiating factors, fighting smart, and remembering the story of David and Goliath, MVNOs can carve out a successful niche in a competitive market.