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To grow profits, Internet service providers need better ways to segment their customers
Celcom has developed few products to 3 different market segments. They classify their market as mass consumer, commercial and government market. Each market will be handled by 3 different department, which is Consumer Market Department, Commercial Market Department and Government Market Department. Each department will responsible in developing product for each segment. They need to develop a very competative product since competitors are targeting the same consumer segment. In today's environment of cut-throat competition, they need to better understand the relative profitability of both their customer segments and their product offerings.
In this industry, the profitability analysis relies on traffic models to allocate the cost of the network based on usage. Hence, the more usage a product or customer generates, the more network cost it is allocated.
Customer and product profitability combines activity-based costing (ABC) with simple traffic modelling to apportion the cost of network elements to both customers and products, according to the traffic or usage generated by each. Capital expentiture (capex) and operating expenditure (opex) is mapped to a series of activities and logical network elements, based on individual cost drivers...