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BCG Forage Task 1 Past Email Example

The email discusses implementing a handset leasing program at Company X to improve declining profits. Handset leasing allows customers to lease phones from the company monthly rather than buying them outright, which could increase customer upgrades and reduce business costs. While research shows handset leasing has benefited other telecom companies, the writer recommends Company X first conduct customer surveys, develop an implementation plan, and estimate costs and benefits before deciding whether to adopt the program.

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301 views1 page

BCG Forage Task 1 Past Email Example

The email discusses implementing a handset leasing program at Company X to improve declining profits. Handset leasing allows customers to lease phones from the company monthly rather than buying them outright, which could increase customer upgrades and reduce business costs. While research shows handset leasing has benefited other telecom companies, the writer recommends Company X first conduct customer surveys, develop an implementation plan, and estimate costs and benefits before deciding whether to adopt the program.

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Rocxky
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Dear Elisse,

I hope this email finds you well.

I'm writing to you now to talk about the possibility of using phone leasing to raise Company X's
profitability. As you are aware, during the past few years, the company's profits have decreased.
We've been considering a number of options, such as handset leasing, to try to turn things around.
Handset leasing is a relatively new concept in the telecom industry, but it's been gaining traction in
recent years. The basic idea is that customers would lease a new phone from the company for a
monthly fee instead of buying it outright. This would allow customers to upgrade their phones more
frequently without having to pay the full retail price up front.

Handset leasing has a variety of potential advantages for both the business and its clients. The
organisation can experience a decrease in inventory expenses, financing costs, and attrition rates as
a result of handset leasing. Customers can find handset leasing to be a more cost-effective way to
purchase the newest smartphones and to provide them the freedom to change their phones more
regularly.

I've done some market research and have found that handset leasing has had a positive impact on
telco profitability in other markets. For example, in the United States, AT&T and Verizon have both
reported that handset leasing has helped to improve their margins.
Based on my research, I believe that handset leasing could be a viable option for Company
X. However, I would recommend that we do some further research before making a final decision.
Specifically, I would recommend that we:

 Conduct a survey of our customers to gauge their interest in handset leasing.


 Develop a detailed plan for how we would implement handset leasing.
 Estimate the costs and benefits of handset leasing.

When we have this knowledge, we may decide whether or not to pursue handset leasing more
intelligently.

I have no doubt that Company X might benefit from using handset leasing. But I think it's crucial to
conduct thorough research before making a choice.

Thank you for your time.

Sincerely,
Rakesh L

1. Institutional Knowledge (InK) at Singapore Management University, Transformation of Globe Telecom -


https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=7205&context=lkcsb_research
2. PhillipCapital, SG Telco Sectorhttps://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/SectorStrategy/SG/Telc
oSector20190104.pdf
3. Blog, Are smartphone rentals value for money?- https://www.mobileworldlive.com/devices/blogs-devices/blogs-
handset-rentals-offersurprising-value/
4. Market Realist, Why Sprint Is Focusing on Handset Leasing to Accelerate Growth
https://marketrealist.com/2017/04/why-sprint-is-focusing-on-handset-leasing-toaccelerate-growth/

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