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Case study 1

Virgin mobile USA has reason to believe some people will cut back on food before

they give up their cell phones. In talking with thousands of their customers who

are part of a special online panel, virgin mobile found that 6! of their customerssay they are keeping their cell phones, but are cutting back in other ways, for

e"ample, ! are dining out less fre#uently and $%! are deferring big ticket

purchases.

&he information from the panel warranted a press release. 'ress is a high

priority for building awareness about the company and its prepaid value(

)ustomers who *oin the panel are asked if they are willing to talk to the media.

+hen the )hicago &ribune e"pressed interest in the story, virgin mobile directed

the newspaper to su-ame Su-anne peace to talk about her e"perience as acustomer. She used to spend /0%1 per month on her cell phone with sprint. She

switched to no2contact with virgin mobile USA to pay by the minute and has never

looked her back.

3uestions4

/. +hat is the impact of global recession on the telecommunication industry5

&here has been no impact or very less impact on the telecommunication industry

across the globe. &elecom industry is more or less recession proof.

)ommunication is a necessity today than a lu"ury, and consumer would allocate a

budget generally unplanned for communication services which makes the

industry survive like any 7)8, unlike I&. It is the only industry that is taking or

hiring more people in the industry than any other industry. +e also see increase in

the subscriptions in the telecom industry. or e"ample, when 9eliance and &A&A

got into the already crowded 8S7 market the subscription base grew.

&elecommunication is now a global service, drawing the attention of theinternational service providers and managing their services off2shore. &he services

are rendered to the corporate and retail customers. &hough the world economic

situation has hit the companies of varied sectors, the telecom sector has seen little

or nil fluctuation.

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:owever, the fear of recession in the globe will eventually creep down into the

telecom industry too. &here is already reduction in spending and a lack of

enthusiasm for ;8 technology seen in the global market and undoubtedly margins

have reduced to an e"tent to #uestion survival of several &elecom vendors while

operators strive to break even their costs.

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@. :ow do you deal with the unemployment problem during the recession5

9ecession has lead to a huge number of *ob cuts and high rate of unemployment.

?ut it is not the time to panic. ne could deal with unemployment problem during

recession in the following ways4

ne should try to strengthen hisBher skills and knowledge

ne could probably take up further studies and increase one>s knowledge

ne should be realistic and stop *ust thinking negative

ne could try and apply for *obs through employee referrals from friends in

the industry

Using an agency during the recession period to look for *obs also helps.

Agencies have contracts in various organi-ations and can refer a good

employee in the company.

ne of the best ways of dealing with the problem of unemployment during

recession is to start one>s own business or to become an entrepreneur. &his would

not only help self but would also help in providing employment to a few others

looking for *obs.