Case | HBS Case Collection | July 2007 (Revised February 2010)

Launching Telmore (A)

by Ramon Casadesus-Masanell, Celso Fernandez and Moritz Jobke

Abstract

When the Danish mobile phone service provider Telmore entered the market in October 2000, few people took notice. Its business model was not perceived as particularly aggressive or threatening to the industry. Less than three years later, Telmore's creative adaptation of the well-known, no-frills model of the airline industry had taken the Danish market by storm. With a combination of rock-bottom prices, simplicity, and a focus on customer satisfaction backed by a unique low-cost infrastructure, Telmore's business model, with its powerful virtuous cycles, proved to be the most successful innovation the industry had seen in many years.

Keywords: Business Model; Disruptive Innovation; Market Entry and Exit; Creativity; Adaptation; Competitive Advantage; Telecommunications Industry; Denmark;

Citation:

Casadesus-Masanell, Ramon, Celso Fernandez, and Moritz Jobke. "Launching Telmore (A)." Harvard Business School Case 708-414, July 2007. (Revised February 2010.)