According to me, the company should start with this because this industry is going to have exponential growth and this concept of leasing will give them the advantage to broaden their consumer market.
Deep research about the various factors that will strengthen the decision of introducing handset rentals :
Industry Research
The telecommunication industry is booming in the current market. As the era of digitalization is growing exponentially because the concept of smart cities and IoT is introducing rapidly in recent markets. The wireless handsets are need of the hour for consumers and that too with all modern technological up-gradation in it. So this sector gonna see exponential growth in the recent time period.
Consumer Market
In the market, competitors are getting the benefit of this concept of money lending as they widen the consumer market. This concept gives them a chance to more frequently update the handset and also in a much feasible manner. As more people are getting introduced to digitalization they are seeking an option to get hold in it.
The macro factor which is strengthening this concept is the transformation of a normal city to SMART CITY. As this concept is booming in the market so every single people want to be part of it. In the near future, IoT will be coming in real play so every household chorus will involve the need for the latest handset up-gradation which is only feasible if they get a chance to rent the new technology as the world is developing new tech day after day.
Competitors
Skytel and SKT in South Korea and Singapore after introducing rental recorded rapid growth in the market as it gives then an opportunity to make their consumers more frequent in upgrading there handsets This concept helps them to grow and get an edge over other competitors. They also introduce vouchers for the next upgrade and also came up with small duration plans to make them free to upgrade whenever they want too. This concept will make the company more consumer-centric.
Profits and Investments
There will be good profits by introducing this concept as the market size will increase and the consumer buying the service will be more frequent.
Small Increase in cost
The concept will make the company hold stock of premium smartphones in its inventory so have to plan this accordingly to gain more profits out of this concept.
Therefore it is liable to introduce this in the market as this concept will give them a chance to get more consumers and also make them more frequent in purchasing these services.
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