business case
Budget: $10 – $120 USD
You are the Product Manager in Awasr for residential customers, the leading company providing Fibre internet access in Oman, it currently has a market share of 25% in Oman, and expected to grow at a rate of 10% annually for the next 3 years. The market currently has a total of 600 000 customers that are addressable.
In 2021 Awasr sold internet access to 10,000 new residential customers with an average revenue of RO29 per month, and a gross margin of 35%, the internet access product incurs an annual capex charge of RO30,000.
Awasr also plans to introduce value added services in 2022 to complement the internet access product sold to residential customers. However, the management of Awasr have instructed that all investments to finance the launch of the new products (Unified Communication, Cloud Security, and TV), must come from profit from the sale of internet access service.
Consultants have provided information on the target pricing, margin, and costs for the planned services.
Task:
i) As the product manager you have to make a recommendation on which product to launch first based on:
i) Competitive situation in the Omani and regional market
ii) Impact on Awasr’s strategic positioning
iii) Contribution to overall profitability over the next 3 years (business case).
iv) Development effort (use information from wider telecoms industry to answer this)
v) Recommendation on the way forward
ii) Based on the above, Build a go to launch for the product recommended, highlighting what milestones will be needed to be done.
In 2021 Awasr sold internet access to 10,000 new residential customers with an average revenue of RO29 per month, and a gross margin of 35%, the internet access product incurs an annual capex charge of RO30,000.
Awasr also plans to introduce value added services in 2022 to complement the internet access product sold to residential customers. However, the management of Awasr have instructed that all investments to finance the launch of the new products (Unified Communication, Cloud Security, and TV), must come from profit from the sale of internet access service.
Consultants have provided information on the target pricing, margin, and costs for the planned services.
Task:
i) As the product manager you have to make a recommendation on which product to launch first based on:
i) Competitive situation in the Omani and regional market
ii) Impact on Awasr’s strategic positioning
iii) Contribution to overall profitability over the next 3 years (business case).
iv) Development effort (use information from wider telecoms industry to answer this)
v) Recommendation on the way forward
ii) Based on the above, Build a go to launch for the product recommended, highlighting what milestones will be needed to be done.