Whether it is better in terms of profitability to lower barriers between operators to attract new customers more easily or to raise them in order to retain customers is a hotly debated strategy dilemma. A new article in the Strategic Management Journal, written by Andrea Fosfuri of the Department of Management and Technology together with Niloofar Abolfathi and Simone Santamaria of the NUS Business School, National University of Singapore, aims to show that a business model with low switching costs between competitors is an advantage for firms in the long run.
Why number portability increases profitability for phone operators
