2011 – a year where a lot of large companies look to downsize their staff or merge, spending more on brand and less on organic growth.
In a scramble to dominate or hold onto their sectors, new attitudes and corporate philosophies will appear.
New ideas will grab the imagination of the consumer and change perceptions. New brands and adventurous companies will appear as the old guard become prudent.
B2b will still dominate the ‘how do I earn a living’ psyche, as its easier for smaller companies to grab some market share. However, hungry predators will be looking to buy the ones who get some traction as its cheaper than getting ‘own sales’ and the target is easily valued by the ongoing revenues now established as the commission model. Time for b2b dealers to increase their sell out price perhaps?
Franchising will continue to grow and Fonehouse will be a big part of that. There will be healthy competition but Fonehouse should win by a City mile.
Networks will compete even more with each other and airtime prices will possibly increase due
to smartphone dominance and the massive cost it imposes to improve network capability.
Higher VAT will hike prices in January. However, Wi-Fi links may pull airtime bills downwards as people and devices learn more and more how to access the cheaper connectivity routes.
That leads to the eternal question of how long subsidy, the lifeblood of our industry, will remain in place. Whatever it is, it will flow less and less at the point of sale as everyone looks to hang onto cash. Dangerous for some, entrancing for others…just make sure you deal in reality in 2011 as dreams may turn into nightmares for the risk takers.
Having said that, 2011 will make some people very successful. Good luck and Happy New Year.