Case Study: giffgaff

Date: November 22, 2010
Pages: 12
Price:
US$ 1,895.00
Publisher: Ovum
Report type: Brief Review
Delivery: E-mail Delivery (PDF)
ID: CEB8D9FFE74EN
Leaflet:

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Case Study: giffgaff
License Price: US$ 4,740.00

Introduction

giffgaff is a MVNO that has set out to offer a competitive package to consumers by cutting its overhead costs to the minimum while delivering a range of service offerings that are a good fit with the wishes of its user base. It has achieved this by the close community relationship that it fosters and by building a self-help model run by the users themselves.

Features and benefits
  • Learn how the power of social media can be harnessed to create new business models to challenge traditional views of the vendor/customer relationship
  • Understand how the community can become a corporate attribute and reduce operating costs.
Highlights

The community is part of giffgaff rather than being an entity outside of the organization. The business model is built around offering mobile services in the form that users would prefer, at a competitive price point, and by encouraging its users to promote and assist the organization in a number of ways.Ovum believes that visionary business models will increasingly address consumer markets in this manner and this has the potential to challenge traditional methods of establishing customer loyalty providing the product itself continues to meet user expectations.

Your key questions answered
  • What opportunities are there for making business more effective through the use of social media technologies?
  • Is the community focus adopted by giffgaff a viable long-term business model or will it fail to scale as the business matures?

SUMMARY

Catalyst
Ovum view
Key messages

GIFFGAFF'S COMMUNITY IS AN INTEGRAL PART OF THE ORGANIZATION

Responding to consumer dissatisfaction with established mobile operators
The giffgaff offering
There is no traditional call center
Community voice in developing the offering

THE SOCIAL MEDIA PLATFORM IS THE KEY TECHNOLOGY DIFFERENTIATOR FOR GIFFGAFF

IT services are outsourced
A hierarchy of knowledge

THE LONG-TERM VIABILITY OF THE BUSINESS MODEL NEEDS TO BE QUESTIONED

Questions remain
The risk of clones
Scalability of the model
Commitment of the owner

RECOMMENDATIONS

Recommendations for enterprises
Recommendations for vendors

APPENDIX

Further reading
Methodology
Author
Ovum Consulting
Disclaimer
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Case Study: giffgaff
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