The case study highlights the challenges faced by CEO of Telecommunication Company on Blue Ocean strategy.
management
Description
The case study
highlights the challenges faced by CEO of Telecommunication Company on Blue Ocean
strategy. The Company succeeded in achieving the revenue target for existing
business but unable to do well in new business area for the past 3 years i.e. 2016-2018. Quarter 1, 2019 actual revenue progress also
shows negative variance for new business and CEO just have another 6 months
left before his contract expires. On the other hand, the company just been
awarded with a 4 years contract for PC leasing. Company has two options, 1. To
purchase the PCs based on lease to own, or 2. To rent the PCs based on lease to
use arrangement with supplier. CMO was proposing lease to use option in order
for Company to capture the whole 4 years contract revenue in 2019 but CFO
rejected the idea as lease to own could contribute higher profit although the
revenue will be staggered into 4 years. Should revenue or profit come first?
And, how CEO would do well in new business area within 6 months? CEO in a
dilemma.
(Note : pls help to reword).
