Leading the Broadband Access Market in EuropeProduct Strategy Formulation at Alcatel - Teaching Note

Abstract

As the undisputed market leader in the broadband access market, Alcatel has consistently focused on offering Digital Subscriber Line (DSL) technology and equipment to incumbent telecom operators in Europe. Clearly, Alcatel closely monitors any change in the broadband access market to anticipate and drive consequent changes in its product strategy. While continuous price erosion and Chinese competition are significant factors, developments in the areas of customer (telecom operators) and end customer needs (residential and (small) business customers), technologies (copper, fibre, wireless), regulation, and new entrants may present new opportunities. Given these developments, Alcatel needs to decide whether and how to adjust its product strategy. . Key Words Product strategy, disruptive innovation, market leadership