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Case Study: giffgaff

Ovum, Dec 2010, Pages: 12


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Introduction

giffgaff is a MVNO that has set out to offer a competitive package to consumers by cutting its overhead costs to the minimum while delivering a range of service offerings that are a good fit with the wishes of its user base. It has achieved this by the close community relationship that it fosters and by building a self-help model run by the users themselves.

Features and benefits

- Learn how the power of social media can be harnessed to create new business models to challenge traditional views of the vendor/customer relationship- Understand how the community can become a corporate attribute and reduce operating costs.

Highlights

The community is part of giffgaff rather than being an entity outside of the organization. The business model is built around offering mobile services in the form that users would prefer, at a competitive price point, and by encouraging its users to promote and assist the organization in a number of ways.Ovum believes that visionary business models will increasingly address consumer markets in this manner and this has the potential to challenge traditional methods of establishing customer loyalty providing the product itself continues to meet user expectations.

Your key questions answered

- What opportunities are there for making business more effective through the use of social media technologies?- Is the community focus adopted by giffgaff a viable long-term business model or will it fail to scale as the business matures?




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