trackerA Cost Leadership Strategy | XINTEC Telecom Data Analytics

A Cost Leadership Strategy


To deploy a cost-leadership strategy successfully, XINTEC must bring to market software solutions which are effective and specific to a set of customers at a price which is lower or more competitive than other companies producing similar products.

Traditional solution offerings are largely concentrated amongst a handful of established “tier 1” suppliers commanding high premiums on their products. A practice which is no longer sustainable in our view, or at least not applicable to our customers.

For operators, whether traditional MNO, MVNE / MVNO, VoIP, fixed-line carrier or other, the price point at which they should seek to acquire loss prevention technology or related services is becoming increasingly critical.

For instance, an international carrier is very unlikely to spend €1M on a fraud system to save losses of the same order, but a company would willingly invest €50,000 on a fraud system that will save them €1M.

By considerably lowering the cost of Fraud Management and Revenue Assurance solutions, the market immediately opens to a host of new players, to whom case for simple and more cost-effective tools to de-risk a business becomes a compelling one.

At XINTEC we achieve this cost leadership position through a combination of means, including several trade-offs.


How do we achieve cost reductions?

When it comes to implementing sensible cost reductions at XINTEC our agenda is driven and measured by the following criteria, to mention a few

  • A lean product development model and mostly off-the-shelf products;
  • Less product differentiation: we don’t offer all the product enhancements that many market players do (our customers don’t require them);
  • Efficient Cloud and Software as a Service (SaaS) models;
  • Operating principles based on simple and repeatable processes;
  • Tight accounting controls on costs and expenses;
  • An optimal number of touch points with customers;
  • Cost-sensitive distribution channels;
  • A choice business location offering unique mix of talent and serviceable wage costs.

XINTEC WAS FOUNDED WITH THREE AREAS IN MIND


Sean Killeen, XINTEC CEO, gives us three reasons why the company was established.