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| iMeil Analiza - América Móvil - Strategy |
strategy
centers its forces in acquisition of telephone service companies owned, in a great or full percentage, by
governments. This has been done during the last year in several countries.
Special mention is , company currently under financial problems and working to return to its bonanza years.
If this happens, then Slim will come into action and reconvert the shares he has bought at a
'bargain price'.
In the case Slim can do it, he would be one of three major share holders at , with 12%. Other two share holders have 17% and 13%,
which makes clear that they three would have influence in decision taking.
What is the importance of ?
Just imagine that from there, the United States, Slim would be able to attack and snap out one of his
biggest rivals in fixed line telephony on the Latin America region:
.
Do not think, however, that playing in the Latin America market is easy. Slim has faced several problems
both to penetrate markets and to help his subsidiaries. This is simple to understand: increasing the mobile
phone demand will impact negatively the fixed line subsidiaries.
This is evident if we compare the fixed line monthly fee with the time a prepaid card mobile phone user would
take to spend the same money with a modest an normal service usage: $180 Mexican Pesos (approximately US$17), with a
moderate and non-intensive usage, could be consumed by a person in two or three months.
strategies,
as commented, are focused on promotions to increase the user base. Promotions are a normal activity in
mobile communication companies to try to increase their own customer base. And has more importance
considering that the "mobile war" is taking place on Latin America countries.
The most important ones --and used by most of mobile communication companies-- are those related to time
included when the mobile phone is bought (called "tiempo aire" in Mexico and used mostly by prepaid users)
and the "time included" for monthly fee users (with contract signed.)
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