Acg Assignment

1. African Communications Group: Business Model

Who?

Geographic

In terms of geography this company was focused on Tanzania and were considering expanding to Uganda and Zimbabwe and later on to the rest of the African continent. Tanzania had been chosen because of its relatively stable political environment. The African continent had a huge demand for communication services and the market had huge potential for growth. They focused on the big cities Dar es Salaam and Mwanza

Customer Segment

In terms of customer segments, ACG was focused on both businesses and individuals. Within the businesses their main focus was on street retailers and transportation companies. For individuals, they were focused on business people that lived in the big cities (7% of pop. in Dar es Salaam). Their target customers were: individuals visiting banks, hospitals ports and other retail businesses, people from the big cities that had families in rural areas, and wealthy individuals and tourists that wanted to make international calls.

What?

Products and Services

ACG would set up Payphones in the cities were you could make calls and use paging and voicemail services. These services could be used with pre-paid phone cards.

Value Proposition

ACG’s value proposition came through offering a better quality product than their competition. Their payphones were more reliable and durable than those of the TTCL (competitor). They offered an integrated system were you could send paging messages through the payphones and their monthly subscription fees included more services than their competitors. They also had superior pre-paid card technology and they offered competitive rates considering the range of service offering.

How?

Distribution Channels

The locations chosen for the payphones were based on a study of traffic density, security, lighting, physical conditions, telephone availability, and proximity of retail establishments where cards could be sold. ACG’s strategy is to...